How hospitality loyalty programmes are adapting to omnichannel consumer habits

Pre-pandemic, business travel was a critical source of revenues for hotels. But as more companies embraced work-from-home setups, the idea of travelling abroad to meet someone you could otherwise speak with in a click of a button sounded like a thing of the past.

As of 2022 , data show business travellers have yet to return to their pre-pandemic travel spending. Leisure travel, meanwhile, has been back in full swing , especially in Southeast Asia. Inbound and outbound travel in the region has increased compared to 2019-levels, based on the volume of searches related to tourism, according to Google. Travellers are having longer vacations, seeking places and experiences that promise luxury and convenience.?

In response to these trends, the hospitality industry has redesigned their loyalty programmes around wooing not just business travellers, but leisure travellers as well.

Expanded perks for non-staying loyalty members?

Hospitality loyalty programmes in the post-Covid era are more focused on the wants and whims of hotel guests. Members of the loyalty programme of the Global Hotel Alliance , for example, have started allowing access to hotel facilities for loyalty programme members at certain tiers even when they are not checked in. Avani Hotels & Resorts in Thailand , for example, has allowed loyalty programme members to access its gyms and beach clubs without checking in. For many hotels in Asia, such perks began as a way to attract locals during Covid travel restrictions, and have since been maintained.

Global Hotel Alliance now also provides access to travel experiences, like spa treatments and local tours. The selection is varied — whether that may be for foodies who want to learn how to cook local dishes to anime fans who want to visit locations in Tokyo inspired by their favourite films.?

Flexible ways to earn and spend rewards

Some hospitality brands are also relaxing the rigidity of their perks. Instead of confining the earning and redeeming of loyalty points to their own facilities, these brands now give customers a wider range of lifestyle-spending options.?

Marriott International, for example, partnered with Grab to let loyalty programme members transfer rewards earned from one app to the other. A customer booking a ride through the Grab app could earn Grab Rewards. Those points could then be transferred to Marriott Bonvoy, the hotel brand’s loyalty programme. Points earned by checking in to Marriott Hotels could also be transferred to Grab Rewards.?

In India, Taj Hotels’ loyalty programme is integrated with a super app called Tata Neu, so their members can also use the points they earn with other brands across other businesses, like Starbucks or AirAsia.?

Luxury hotels’ loyalty programmes like Shangri-La’s Golden Circle have also expanded the products their members may redeem with their points to accommodate their appetite for more lifestyle-driven choices. Members could redeem their points for a GrabGifts voucher, which can then be used for any of the services provided by the app.?

A lower barrier to entry lets hotels capture locals’ loyalty

Engaging potential loyalty programme members early in their customer journey contributes to the success of hospitality rewards programmes. As an Oracle survey noted, “Guests become loyal if you give them the opportunity.”?

Hotels are capturing these opportunities by crafting promo campaigns to attract customers who could potentially move up the loyalty programme tiers. For instance, new local members might be given the chance to earn 2x the rewards points by staying at a resort during a low season. This trend hearkens back to Covid-19 travel restrictions , when hotels competed to entice locals with staycations.

Brands are also using food to reach previously untapped customer segments. In 2021, Accor Hotels in the Philippines gave loyalty programme members the chance to earn 3x their rewards points by ordering food from their brands’ restaurants. Members didn’t have to stay overnight in the hotels, and could have the food delivered to their homes.?

Strengthened convenience and personalised service

Hoteliers say loyalty programmes tend to be “stickier ” or remembered by guests when they provide superior convenience. Once again, Covid was a strong driver for this , with hotel staff providing personalised services so guests could dine or use exercise equipment in their rooms and avoid crowds. Once your guests have experienced a higher level of service, it’s hard to expect them to settle for less.

IHG Hotels & Resorts provides such convenience through a mobile app that lets loyalty programme members track spending during their stay, chat with customer service, check in and out digitally, and ‘withdraw’ rewards points to their Apple or Google wallet. By reducing the effort customers must exert to get what they want or need, such services can have a significant, positive effect on customer retention.?

Travellers want rewards enmeshed in their lifestyle?

Travellers today — whether for business or leisure — now want more than just room upgrades and spa discounts they’ll never use in their loyalty programmes. They now demand greater variety and control in the way they earn and spend their points. While many hospitality programmes were initially designed for exclusivity, hotels and resorts can expand their perks by partnering with digital platforms.

Let Grab be your partner in designing rewards your customers will love and use. Learn more about how GrabGifts can support your loyalty programme on our website .?