No doubt you’ve heard of loyalty programs for hotels. They’re supposed to keep the guests coming back, right? But do they actually work that well?

Some do and some don’t. In this post we’ll look at a fundamental error many hotels make when creating loyalty programs and, in the next, we’ll look at some best practices for creating successful programs.

One major mistake many hotels make is assuming that loyalty programs are all about financial incentives: “10% off a room”.

Obviously that influences some people. But don’t make the mistake of thinking that your guests are only interested in financial rewards.

Drs Jin-Soo Lee, Nelson Tsang and Steve Pan of the School of Hotel and Tourism Management at The Hong Kong Polytechnic University recently published research finding that, what they call, “social rewards” matter to people too.

The example they give is of the the JW Marriott Phuket, which established a loyalty program with the Phuket Marine Biology Centre, giving members of the Marriott Reward program “the opportunity to participate in releasing baby turtles into the sea.”

This was found to be such a “rewarding and memorable experience” that members rated it as more important to them than rival hotels offering better financial-specific rewards.

How can we use this?

Is there something in your area you could incorporate into a truly unique loyalty program, offering your guests an experience that they would truly appreciate? Maybe even a volunteer opportunity?

Don’t fall into the trap of thinking it’s all about the money. Think outside the money box.