Trends in privilege or membership program in hotels

Leveraging success through membership programs

The Membership or Privilege program, in Hotel business has become a key to customer relationship management in recent years. This concept has been developed by large hotel chains to ensure guest retention. In these membership programs, the customers get points which can be redeemed for a variety of services including future hotel stays, shopping, dining, travel and transportation. These programs benefit both the customers and the business. The businesses find more rationale in developing a steady flow of repeat business from the past guests rather than focussing all energy and resources on newer acquisitions.

Membership programs from major hotel chains

Frequent Guest Programs like Marriott Rewards, Hilton Honors, Hyatt Gold Passport, and Taj Inner Circle have millions of Members who benefit from such memberships. For example:

Taj group membership program: A membership program by Taj group of Hotels is called “Taj inner circle”. They have a 4 tier -copper, silver, gold and platinum offering on the basis of customer’s wallet share to their business. They give benefits to their members like late check in, early check out, Suite Upgrade Voucher etc.

Lalit’s membership program: The Lalit Loyalty or Lalit’s membership program is open to all guests. Members enjoy a range of benefits that include high discounts on F&B like 20% discount on food bill when dining alone, 10% discount for using the beauty services on the property.
The win-win for customers and industry

Membership programs are becoming an increasingly important factor determining guests’ preferences and hotel choices. A recent survey by Market Metrix has shown that membership programs in hospitality industry rank fourth in the top deciding factors for most hotel booking decisions.

Both businesses and consumers have recognized the value of membership programs and in future they are expected to go from strength to strength.

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