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Hotel Loyalty Schemes - International - October 2005
Market Report, October 2005, 445  €


Description

About this reportAbout the market:Although nearly as prevalent as airline frequent-flyer programmes, the frequent-guest programmes of the major hotel chains have never achieved the same hold on customers.
Although it is possible for most frequent flyers to achieve ‘Elite tier’ status in more than one airline programme, the required customer engagement – and subsequent customer value offered – is greater than an easily switched and closely replicated hotel loyalty programme.
There are admittedly some fundamental product differences that provide greater challenges to hotel marketers.
But much of the customer indifference can be explained by the programmes’ simplistic value propositions and superficial direct-marketing approaches to what could and should be highly individualised and interactive relationships with best customers.
Indeed, in some ways, such programmes would seem to be a zero sum game for the chains which operate them.
The major chains are all chasing the same select group of essentially business travellers who spend at least 20 nights a year in hotels.
About Mintel’s research:Published as part of Mintel’s “Travel and Tourism Analyst” (TTA), “Hotel Loyalty Scheme” combines the latest tourism data from the most authoritative sources with Mintel’s own unique and independent analysis.
This report offers a level of market-explanation and coverage of consumer ‘loyalty psychology’ that can help shape effective marketing policy at the highest level.At the core of Mintel’s travel product offering, the TTA provides an examination of the international travel industry, sector by sector.
Comprising of 20 objective reports each year, a subscription to TTA enables the end user to react to the most significant industry developments, covering:the most significant developments in transport trends accommodation trends travel industry technology issues growth travel market sectors shifting outbound travel trends niche travel markets In today’s competitive travel and tourism climate, the players with the clearest understanding of the here-and-now trends are the ones that will out-perform the industry.
Mintel’s TTA offers you the chance to be one of them.


Sommaire
 
Contents
 

 
Key Definitions
 

 
Data Sources
 

 
Overview
 
Figure 1: Percentage annual growth in loyalty programme membership in the US, 1997-2002
 
‘Loyalty’ Versus ‘Rewards’
 

 
Risks and limitations
 
Brief History of Hotel Loyalty Schemes
 

 
Guest Loyalty Schemes – Costly Necessity or Dynamic Marketing Tool?
 
Figure 2: Breakdown of US hotel guests, by travel frequency, 2004
 
Figure 3: Percentage of US hotel nights generated per guest segment, 2004
 
Figure 4: Distribution of hotel chain usage, by frequent travellers, 2004
 
Hotel Loyalty Psychology
 

 
Figure 5: Breakdown of IHC loyalty guests, by profile, 2004
 
Figure 6: Reasons for defection from loyalty schemes, 2004
 
Guest Loyalty Schemes of the Major International Chains
 
Priority Club, InterContinental Hotels Group (IHG)
 
Marriott Rewards, Marriott
 
Figure 7: Elite membership benefits introduced in June 2003
 
Figure 8: Points needed for free hotel nights based on hotel category & length of stay, 2005
 
HHonors, Hilton Hotels Corporation & Hilton Group
 
Figure 9: Membership requirements and benefits, by tier, 2005
 
Figure 10: Gold Passport membership requirements and benefits, by tier, 2005
 
Preferred Guest, Starwood
 
Gold Points Plus, Carlson Companies
 
TripRewards, Cendant
 
Choice Privileges, Choice Hotels
 
Figure 11: Breakdown of Accor's hotel properties, by type, 2004
 
ByRequest, Wyndham
 
Consortia guest loyalty programmes
 
Gold Crown Club, Best Western (BW)
 
Figure 12: Summary of Best Western’s Gold Crown Club International scheme, 2005
 
Minotel
 
Conclusion and Outlook
 

 
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