Consumer loyalty programs in the world’s largest hotel chains

Abstract

Types of consumer loyalty programs are considered depending on the number of participants, benefits, presence (absence) of entry barriers for participants. By increasing customer loyalty, hotels partially abandon the idea of maximizing revenue at the expense of customers, setting prices acceptable to them. Consumer loyalty programs among well-known international hotel chains were analyzed, their pros and cons were highlighted. It was found that one of the attractive aspects of the Marriott Bonvoy loyalty program is the opportunity to stay for the fifth night for free, customers can transfer points to 40 partner airlines and have the opportunity to upgrade their room category and take advantage of the benefits of the executive lounge, consumer incentives include converting points into retail gift certificates, cruises, car rentals, tickets to concerts and sporting events. As of the beginning of 2023, the Marriott Rewards loyalty program covered more than 192 million regular customers. In addition, there is an incentive program, within the framework of which points are accrued for special events and banquets held in hotels according to a special scheme. Hilton is offering a fifth night free. To use this opportunity, guests must have Hilton Silver elite status, which entitles them to room upgrades, free breakfast, and additional points. The hotel chain has become a leader in terms of development, with its membership growing by 110% between 2018 and 2023, reaching a total of 173 million members. Hyatt offers numerous benefits within its loyalty program, including free breakfasts, waivers of resort fees and parking fees on award nights, and guaranteed room upgrades. Hyatt has more than 48 million loyal members. Wyndham Rewards partners with Caesars Rewards from Caesars Entertainment. This allows all members to combine their accounts and earn and redeem points at Caesars properties; while elite members can earn corresponding status. As of September 2023, Wyndham had 105 million members (up 78% from 2018). In terms of earning points, Choice has two credit cards developed in cooperation with other companies. As of September 2023, Choice Hotels had 60 million members (up 54% from 2018). The Accor hotel chain contains many elite and luxurious offers. Points in the ALL program are divided into four levels of privileges. Using all the benefits of the loyalty program, it is possible to exchange the collected points for taxi rides, car rentals and rail travel. As of June 2023, Accor had 89 million members, which is 40% more than in 2019. Among the types of consumer loyalty programs that are actively used by international hotel chains, the following are highlighted: rewards, special prices, free services, partner programs.