A report says features and benefits prove key to member satisfaction regardless of the number of hotel brand locations
Hotel loyalty and reward program features and benefits – earning and redeeming rewards – prove key to member satisfaction regardless of the number of hotel brand locations, according to the J D Power 2015 Hotel Loyalty/ Rewards Program Satisfaction Report released recently.
The report measures customer satisfaction by examining six factors (in order of importance): account maintenance/ management (23 per cent); ease of redeeming points/ miles (22 per cent); ease of earning points/ miles (18 per cent); reward program terms (16 per cent); variety of benefits (16 per cent); and customer service (5 per cent). Satisfaction is measured on a 1,000-point scale. Overall satisfaction with hotel loyalty/rewards programs improves to 701 in 2015 from 676 in 2014.
Although all brands ranked in the study have varying number of hotel locations, program loyalty /reward currency value resonates with program members driving satisfaction. For brands with many and convenient locations, members earn points each time they stay, and the points they accumulate can be redeemed for a variety of goods and services including future hotel stays, shopping, dining, travel and transportation, or the points may even be gifted/ donated. Brands with a lesser number of locations may not have a point system, but might offer a tiered system whereby members can earn level-based privileges, such as free upgrades and hotel credit.
“Given that the ease of redeeming and earning points/miles are two the of the top three factors driving satisfaction across all hotel loyalty/ rewards programs, it’s important to recognise the power of perception when it comes to program benefits. Loyalty/ Rewards brands that satisfy the needs of their members are more likely to build loyalty and drive recommendations via word of mouth and positive reviews,” says Rick Garlick, global travel and hospitality practice lead at J D Power.
Key findings
There is a significant 134 point gap in overall satisfaction between members who have the ability to earn points when making product and/ or service purchases (819) and those who do not (685); the next largest gap (119 points) is in the ability to earn points at restaurants (802 vs. 683, respectively).
Word of mouth is a key driver of member satisfaction. Satisfaction is highest among the 11 per cent of members who choose their loyalty program based on positive reviews – award or online ratings – (815) and is second highest among the 14 per cent of members who choose based on the program’s reputation (800).
Convenience of location is the primary reason customers enroll in hotel loyalty/ rewards programs, with 41 per cent of members choosing their program based on convenience of locations where they travel.
Satisfaction with loyalty programs is highest among Gen Y members (745), compared with an average of all other generational groups in the study (692), which includes Pre-Boomers, Boomers, Gen X and Gen Z. Additionally, satisfaction among Gen Y members is highest across all factors, averaging 28 points higher than the other generations. Further, their loyalty is on par with other generational groups.
Recommendation from hotel staff continues to be a key driver of customer awareness and adoption of hotel loyalty programs, with 41 per cent of members learning of their rewards program from a hotel employee during check-in/check-out, down from 43 per cent in 2014.
Among members who are delighted (providing a rating of 10 on a 10-point scale) with the variety of program benefits available, 86 per cent say they “definitely will” recommend their loyalty/ rewards program.
The 2015 Hotel Loyalty/ Rewards Program Satisfaction Report is based on responses from more than 2,900 US consumers who have joined a hotel loyalty plan. Invitations to participate in the online survey were sent via email to panelists in February 27, 2015, through March 9, 2015.