The hospitality industry is set to transform its approach to customer loyalty, moving from traditional marketing campaigns to strategic business assets, according to a new White Paper titled "Loyalty Reimagined". Authored by Michael Toedt, CEO of dailypoint, and Silke Bartsch, a professor at Hochschule Mittweida, the paper outlines how hotels can leverage loyalty programmes to enhance profitability and guest engagement.
Toedt emphasises that loyalty should not be mistaken for mere points programmes. "Frequent customers stay more often, spend more, and are less price-sensitive," he explains, highlighting the need for a comprehensive strategy. The paper suggests that loyalty programmes should focus on emotional engagement, using trust and personalisation as key drivers.
Key recommendations include setting clear business objectives, such as increasing direct bookings and improving guest retention, before designing rewards. The authors also stress the importance of using Key Performance Indicators (KPIs) to measure success, ensuring that loyalty schemes contribute to business goals.
Sustainability is another crucial element. Bartsch notes that 56% of travellers prefer accommodations offering sustainable incentives. The paper suggests integrating sustainability into loyalty strategies by rewarding eco-friendly behaviours, such as booking green rates or using low-carbon transportation.
As the hospitality sector adapts to evolving guest expectations, these guidelines aim to position loyalty programmes as a competitive advantage. With strong data foundations and emotional engagement, hotels can better measure the impact of loyalty on business performance.
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