These days, there are many frequent-guest programs around consumers especially air-line companies, hotel and credit card companies, and a lot of companies which would like to introduce similar programs have increased until now.
In aspect of companies side, it could collect a wide data(name, address, phone numbers and consumer behavior etc.,) of customers. Through that information, companies could analyze customers behavior and develop the product as his like. Companies could also divide segmentation and use target marketing for efficiency by informations.
Hilton Hotel chain is a good model company which is using frequent-guest program. The hotel spent 50 million dollars on a customer information system and has collected more than 7.5 million profiles of active guest. The hotel also shares the information to it's owned and franchisees hotel for synergy. The information is used not only monitor current market, forecast demand but also promote to act on guest create a bond of loyalty. It helps to find out the preferences of guest easier and faster, therefore guest can get more comfortable stay. These system avails that Hilton hotel could increase the rate of staying at its hotel instead of rivals to 61% from 41%.
For the IT has developed, it is easier that storage and analysis of collected customers information. However we have to recognize IT can be a double-edged sword. It is Privacy problems which is hidden back to benefit of IT.
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Competitive forces of hotel loyalty program
Hotel loyalty programs have become a fixture on the travel rewards landscape, in some cases displacing airline programs as the preferred vehicle for earning rewards and recognition.
Competitive forces of hotel loyalty program have made loyalty programs a key point of contention between hotel chains and the online intermediaries that sell hotel rooms using a merchant model.
loyalty points are being used increasingly as a commodity that can be exchanged for goods or services not related to the hotel companies that issued them.
Next case is one of model operating hotel loyalty program
PARSIPPANY, N.J., The travel rewards playing field has been leveled by Cendant Corporation's new loyalty program, TripRewards®, which allows leisure travelers to earn points or airline miles quickly, just like frequent business travelers.
TripRewards members may elect to earn either TripRewards points, airline miles or rail points for their hotel stays. A hassle-free online system allows members to check points and redeem for rewards 24 hours a day.
The program specifically targets leisure travelers, who typically do not travel frequently and cannot gain enough points in other programs to redeem rewards.
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