26 Mar Loyalty Program Comparison From a Hotelier’s Perspective
Posted at 16:27h in Hotelier Articles
Most hotel and resort loyalty programs involve a “cost-per-point-fee” model. We’ve researched the Brand’s programs as well as some programs which cater to the Independent Hotelier and Resort operator. From a hotelier’s point of view, how can one make sense of the costs and pricing, comparing apples-to-apples?
We set out to compare costs, on a simple basis by isolating costs, based on the following:
- Isolating Brand Fees related to “Loyalty & Marketing Fees” but not including any other fees. HVS information, based on their annual (2014) Hotel Brand Study. We als
- Soft Brand Loyalty programs isolated to the price per point they charge, assuming points are issued to 50% of guests.
- $125/night average daily rate (ADR)
- 100 units.
- 65% Average annual occupancy (yes it’s higher in many Urban properties, but we wanted to use a more common annual occupancy for leisure resorts to demonstrate value even at lower occupancies)
- $3,000,000 annual revenue using the above math/number of units/occupancy
Here’s what the comparison looks like: