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What is the Significance of Introducing Loyalty Program in Your Business?

Loyalty program

Loyalty program is introduced to retain customers by increasing their repeat service buying score. It ultimately helps companies to boost their revenues, increase referrals, and hence, the overall image of the restaurant. Most businesses earn more benefits from existing customers than new ones with overhead marketing techniques. However, businesses invest in acquiring new customers, but a repeat service buyer score is still ideal. 

The loyalty program for hotels also gathers valuable customer information and feedback for the improvement of future dealings. Marketing squads derive customer insights and their priorities through the collected data. Let’s see how the hotels loyalty program works.

How do Loyalty Program for Hotels Work?

The loyalty program hotel is developed for the benefit of both businesses and customers. With these special programs, guests can get discounts, special offers, and gifts while hotel owners, in return, get the customer’s valuable data and preferences and improve relationships. All these benefits ultimately give rise to lifetime relationships, build loyalty, and boost annual revenues.

Different businesses use several loyalty programs to attract their specific customers and keep them engaged. Some organizations, like shopping malls, give points to their customers, which they can redeem to get a discount or buy a free product. In contrast, loyalty rewards program are subscription-based systems that attract users to subscribe for the reward. 

Similarly, there are various types of loyalty program for hotels that hotel managers offer to their guests. Let’s see them in detail.  

Most Common Types of Hotels Loyalty Program

There are several loyalty programs that you might explore for your business. It would be best if you were prepared to identify the one that will meet your requirements. Let’s go through the most popular so you can make a decision.

  • Subscription-based service

This kind comprises a consumer paying the price for the service to access the company’s advantages. A membership charge puts off customers who need help to afford the service. The loyalty rewards program is common among services such as Netflix, Amazon Prime, Hulu, and others.

  • Points system

It is the most common form of loyalty program; customers are given points for every purchase they make. Once they have accumulated enough points, they may use them to acquire anything for free or at a reduced price. Clients may check the number of points on their loyalty cards at any time. Starbucks, Petco Pals, and Mariott reward returning customers with points that may be redeemed for future purchases.

  • Reward program

Customers might receive a portion of the money they have spent with the company and utilize it later via reward loyalty program. Banks frequently use this form of appreciation. Bank of America offers cash-back benefits to customers using debit cards to pay for different items and services.

  • Tier-based system

It is based on tiers that consumers can only access by purchasing and accumulating a particular number of points. Sephora, for example, provides 1 point for every $1 spent. Customers can advance to a new level with better discounts and exclusive goods after earning a certain amount of points. 

A loyalty program for hotels benefits you and your consumers, so if you want to create one for your company, now is the time to start.


In exchange for a more personalized, frictionless experience, today’s travelers are eager to contribute their personal information. Direct connection to your hotels loyalty program members shows them that you are paying attention and are concerned about their requirements and preferences. Since the beginning of 2020, there have been several modifications in visitor behavior, and hotels that can anticipate these changes will gain greatly. For example, the “Work from Hyatt” package allows remote employees to earn points by transferring their home office to any Hyatt location.

And, given that the “work-from-home” trend isn’t going away anytime soon, a loyalty program like this is something every hotelier should consider.

Create a Customized Loyalty Program

Efficient loyalty program for hotels address customer journeys to generate better-tailored loyalty retention experiences. At the same time, such programs must demonstrate their efforts to foster more trusting relationships around data protection and promote transparency. Using combined CRM and Revenue Management methods helps maximize your guests’ worth. Personalized pricing and marketing can persuade customers to join the loyalty program while avoiding overinvestment during peak demand periods.


The loyalty program apps and systems are the best choice to earn higher revenues than ever. Begin by describing brand loyalty and how it translates into various benefits. Keep it customized and active while soliciting client input to improve. You can use an excellently developed HiMenus loyalty program for hotels that will not only enhance visitor retention rates but also boost revenue and reservations with a properly planned marketing strategy that considers the different stages of the customer journey and the different guest categories.

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