IHG battles OTAs with revamp of loyalty programme

Priority Club® Rewards, the world’s largest hotel loyalty programme from IHG (InterContinental Hotels Group) has announced it is repositioning and revamping in a bid to counter online travel agencies (OTAs).

Viice president, Loyalty Programs and Partnerships, IHG, Don Berg told Reuters: "Online travel agencies are a threat to our business".

"They would like nothing better than to have us on a shelf. These programs are a strategic weapon."

Following three years of research of more than 10,000 frequent travellers, who were enrolled in loyalty programs from IHG and other leading hotel companies in North America, Europe, Asia and the Middle East, the findings provided an inside look at the global travel loyalty marketplace and were used to develop the new look and positioning for Priority Club Rewards.

“In 2010, we enrolled on average 600,000 guests per month in Priority Club Rewards; we now have more than 56 million members which is almost equivalent to the population of the U.K,” Berg added.

“The re-launch of Priority Club Rewards is a significant investment by IHG to strengthen our global competitiveness in the industry and among savvy frequent travelers with numerous choices of where to stay.

“This guest-driven re-launch is proof that successful brand innovation requires more than a facelift, but also an investment in research and development to deliver a relevant product that will attract and retain loyal customers.”

While Priority Club Rewards features programmes such as: No Point Expiration, No Blackout Dates, the Points & Cash system and access to airline ticket inventory and non-IHG hotel rooms, respectively, through Flights Anywhere™ and Hotels Anywhere™ redemption options, IHG will also add several new Priority Club Rewards redemption offerings in 2011.

“The research clearly confirmed that hotel loyalty program members in every region of the world not only want to earn currency that is valuable and flexible, they also want to maintain absolute control in how they use it,” asserted Berg.

“And, with so many new choices to redeem Priority Club® points, there’s never been a better time to book directly on IHG’s website, where members can earn Priority Club points with every stay.”