Bandecci looked at it from the guests’ point of view and said it is better to join loyalty programmes rather than resist them.
He said: “We have to see what the guest wants. It’s a fact that consumers and travellers are very keen on earning and being part of loyalty programmes. So, as an owner I’m also thinking why will I fight not to be part of the loyalty programme?, if the market shows that loyalty programmes are an important element in the decision making process for travellers.”
A representative of an owning company of a hotel on the Palm Jumeirah pointed out that the operator “levies additional fees on owners by telling customers ‘become a member and you get free Wi-Fi’”. He added: “So as an owner, now that fee has to be shouldered by me, and is a huge problem — similar scenarios in the USA with different owners and operators have led to lawsuits as well.”
Gardenghi sympathised with the representative and commented: “The onus is a bit on us, and our general managers to explain more clearly to owners about all the details of the programmes. But as operators it’s not like we want the story to be hidden on purpose.”
“Hilton is probably one of the most transparent to its owner’s portal in the industry, where any management company can download an audited statement at the end of the month, which consists of the full list of transactions complete with the breakdown of the cost of the HHonors programme to the detail of a single customer and the re-imbursement on that. We run the HHonors programme as a unique entity from which we are constantly reinvesting in marketing activities. We have a separate balance sheet and disclose part of the audited statement, since we are a publicly listed company, with our owners’ counsel group. We also bounce ideas [and take suggestions] from the counsel group before we implement some of these ideas,” Gardenghi said.
Kali added that no particular loyalty programme stands out as the “ideal one” acknowledging that each operator is trying to put its best foot forward.
He said: “Both owners and operators need to take inspiration from loyalty programmes implemented across other industries. The hotel industry has learned and got inspired by the airlines, who do a fairly decent job in profiling [guests] better than the hotel companies do but they do a great job in value-add–upgrades and retailing.
“We don’t see enough of upgrades, and as a loyalty programme member I will be upgraded because I have a ton of those points. But, I fly Emirates on economy, and if I had a few of those points accumulated, I will certainly get upgraded. ‘How do hotels create that?’ is a question we need to ask the industry.”
Some operators think they have it cracked. Wyndham’s revamped loyalty programme, for example, is based on a straightforward rule; in a separate interview, its regional VP for EMEA, Ignace Bauwens, told Hotelier that Wyndham Rewards members can redeem stays against points across the board without any blackout dates. “It’s straightforward, 15,000 points earns you a night’s stay, and the manner in which points are earned as well is quite transparent.”
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