Hotels Encourage Loyalty with Personalized Rewards
Special to the Sun
Published: Tuesday, April 08, 2008
Location might be the first reason travellers choose a particular hotel, but loyalty programs are likely a close second.
Whether it's the Fairmont chain's personal approach, the Starwood group's once-in-a-lifetime experiences, airline points, gifts, or a long list of tiered preferred-guest privileges, hotel marketers draw customers back repeatedly through loyalty programs.
"Loyalty programs are effective vehicles because they allow a company to promote itself and give the opportunity to fill space during down times," says Randy Williams, president and CEO of the Tourism Industry Association of Canada.
"Loyalty programs are also a way for companies to get closer to their customer. They are customer-relationship management programs that work. And they are also good for consumers."
The Fairmont program, which is tiered according to the number of hotel stays in a calendar year, builds relationships with repeat clients at the 55 hotels and resorts in the chain, by personalizing services and zeroing in on individual preferences. Customers who sign up for Fairmont President's Club, for instance, are asked questions ranging from the type of pillow and mattress they like to the distance they want to be from an elevator and the floor on which they want their room located.
A recent addition to Fairmont's loyalty program is its Fairmont Fit health spa program. In partnership with Adidas and EMI Music, it includes delivery of workout gear and an MP3 player to guests' rooms.
Another new expansion of the program, the Fairmont Music Store, is an online retail project (www.fairmontmusicstore.com) giving guests access to a wide range of digital music from EMI Music's catalogue.
"As we continue to seek out new and meaningful ways to personalize the guest experience further, Fairmont is excited to be working alongside a worldwide music leader like EMI," said Jeff Senior, executive vice-president of marketing and sales for Fairmont Hotels & Resorts. "By observing our guests' individual travel preferences, we'll be able to customize music offerings that reflect their tastes and deliver an enhanced level of personalized service whether they're on the road, in the hotel or even relaxing in their home or office."
Starwood Hotels & Resorts offer a different twist on personalizing a loyalty program. As well as the usual system of accumulating points that can be redeemed for free rooms and other rewards, preferred-guest program members can use their points to bid for special experiences. Through the Moments program, they can take part in an online auction to bid for "insider access" to red-carpet movie premieres, closed rehearsals with top musicians, private dinners with celebrated chefs, rounds of golf with PGA Tour pros and other events.
"Moments by Starwood Preferred Guest give our members access to once-in-a-lifetime events that go beyond just offering tickets to a concert or sporting event," said Starwood's vice-president of loyalty marketing Robin Korman. "We want to make an emotional connection with our members that extends outside of our hotel doors by providing them with rich experiences that go beyond the world of upgrades and free flights."
Among the Moments to be auctioned this month are a two-hour session and follow-up with bestselling author, psychiatrist and life coach Keith Ablow, front-row seats at the Country Music television awards show on April 14, a VIP package for Mel Brooks' Broadway musical Young Frankenstein, which includes top seats and backstage access after the show to meet the stars, and half-court seats to the April 11 Chicago/Cleveland basketball game, which includes a meeting with Chicago star Ben Gordon.
Several other tiered loyalty programs at major hotels include variations designed to inspire customers to return. For example, Hilton's HHonors program doubles up, giving both reward points and Aeroplan miles for the same hotel stay. (Most other loyalty programs require members to select one or the other set of points.)
HHonors also has a charitable program through which travellers can donate points to charitable causes. The cash conversion gives the Hilton Family Giving Back program $25 for each 10,000 points donated. The first Canadian charity to become part of the program was the Kids Help Phone.
"Expanding the support of the Hilton Family Giving Back Program to include a Canadian charity reinforces the global nature of our business, and our commitment to help make our world a better place to live," said Adam Burke, senior vice-president and managing director of Hilton HHonors Worldwide in announcing the addition of the Kids Help Phone in December.
Marriott rewards include members' choice of gifts, as well as the ability to redeem points with cruise lines, ski resorts and golf courses affiliated with the Marriott chain.
Such credit cards as the recently launched American Express Platinum Card also include hotels and resorts in their reward offerings.
"We know that Platinum Card members are an elite group of established, sophisticated and value-conscious Canadians who travel frequently. They want a card that will recognize their accomplishments and provide relevant benefits. That's why we offer things like fine hotels and resorts benefits," says Barclay Hancock, marketing director for the Platinum Card at American Express. "For Platinum Card members, getting special access and amenities at one of these luxury properties not only provides an escape from the everyday routine, but it may also be a great way to relax and enjoy their stay."
© The Vancouver Sun 2008
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