1、The Loyalty Divide Operator and Consumer Perspectives Hotels 2018 The research cited in this paper was conducted in February 2018 with over 13,000 consumers globally and 500 businesses across retail, hotels and restaurants in 9 countries across North America, Europe, Latin America and Asia-Pacific:

2、Australia, Brazil, China, France, Germany, India, Mexico, UK and USA. Independent research and creative consultancy, Morar HPI, conducted the survey which explores consumer and business attitudes towards loyalty and advocacy today and in the future. This report is based on the findings from the stud

3、y. Methodology Introduction As more people continue to travel all over the world for business and pleasure, so the battle for hotel guests has become more and more intense, and unsurprisingly hotels are deploying a full range of loyalty programs and incentives to try and hook in guests, build up bra

4、nd loyalty and reap the rewards of return business. Points programs, privileges such as free access to spas or executive lounges and exclusive offers are popular rewards. But are guests engaged? Given the choice to revoke their personal information from hotel brands, more than 80% of respondents sai

5、d they would. Yet loyalty programs are at the heart of hoteliers commercial strategy. So what is going on? Weve uncovered a surprising divide in perception between how businesses view loyalty programs and what guests really think. But all is not lost. As increasingly sophisticated algorithms enable

6、businesses to target and personalize their offers, the opportunity to engage guests more effectively has increased. And with the role of social media, in particular influencers, growing in importance, theres a rich new vein to mine when it comes to winning loyalty. In this complex world of infinite

7、choice, we have identified four behavioral types The Broadcaster, The Enthusiast, The Lazy Loyal and The Seeker typologies that most people shift between depending on whether theyre travelling for business or pleasure, booking the annual family vacation or jetting off for a once- in-a-lifetime treat

8、. Theres greater complexity for hoteliers hoping to win the types over, but if they can tap into these behavior patterns and create more tailored loyalty programs, then the opportunity for gaining new and, more importantly, loyal guests is huge. Weve uncovered a surprising divide in perception betwe

9、en how businesses view loyalty programs and what guests really think. The Great Divide Hoteliers are heavily invested in loyalty programs and in a drive to grow customer bases, and then retain those guests, offer what they think are relevant and incentivizing programs which usually include benefits

10、such as free room upgrades, free access to facilities such as spas and executive lounges, and rolling, 24-hour check-in. Guests, however, are far less engaged in the programs than hoteliers realize. Rather than having an open attitude to the programs, the consumer research bears out a far more selec

11、tive approach. Some 61% of business respondents believe guests will sign up to every loyalty program on offer, where in reality only 24% of guests do, with a third rarely signing up to any loyalty program at all, a figure hotels guessed to be just 6%. Relevancy of offers and rewards is another area

12、that throws up a large discrepancy: 54% of hoteliers thought guest offers are mostly relevant, while only 22% of guests think they are. Conversely only 6% of hoteliers thought guest offers are rarely relevant whereas 39% of guests think offers are not relevant. Furthermore, 62% of hoteliers currentl

13、y do not engage influencers and 71% do not have brand ambassadors, yet 43% of guests are influenced by YouTubers. Its clear that if hotels want loyalty programs to be successful, a rethink in strategy is required. When it comes to loyalty, our data reveals a significant split in the perception of ho

14、teliers and their guests. Hotels think that guests would openly sign up to every loyalty program guests are much more selective, only signing up to programs with real relevance 6% rarely join 30% rarely join 33% only sign up to select, relevant programs 46% only sign up to select, relevant programs

15、61% sign up to every loyalty program 24% sign up to every loyalty program Misconception 1 - guests are very engaged in loyalty programs Hotels Guests 6% say guest offers are rarely relevant 39% say offers are rarely relevant 40% say guest offers are sometimes relevant Hotels collaborating with influ

16、encers Guests more likely to trust brands reviewed by YouTubers 62% do not do this 20% disagree 37% neutral 43% agree 38% currently do this 40% say offers are sometimes relevant 54% say guest offers are mostly relevant 22% say offers are mostly relevant Misconception 2 - offers are relevant Misconce

17、ption 3 - loyalty is a guest / hotel only relationship The Future of Loyalty Younger age groups in particular have a propensity to join loyalty programs and say their loyalty is growing. Despite the great divide, the future of loyalty is looking good and there are no signs that it is going to die ou

18、t any time soon. Younger age groups in particular have a propensity to join loyalty programs and say their loyalty is growing, while a very small percentage of respondents across all age groups aged 18 to 55+ say they are less loyal to brands than they were five years ago. Which is good news for bus

19、inesses as they are heavily invested in the programs. A massive 75% measure their loyalty reward programs in the context of commercial objectives - and for 60% the programs are seen as a commercial imperative. However, over half of hoteliers are only recognizing loyalty by measuring data from guest

20、surveys and loyalty card data, with a quarter also measuring transaction data and mobile apps. These activity measures, while obviously important, dont take into account the impact of word-of-mouth marketing and the growing role of social advocacy, which can be seen as behaviors. These two sides to

21、brand loyalty are gradually coming into balance in terms of their importance, with consumers increasingly recommending hotels to friends, following a hotels online activity and posting reviews online. However few hotels are even measuring these behavioral benefits, with only a third monitoring onlin

22、e reviews and social media posts. Hoteliers also have the challenge of catering for both business and leisure travelers, who can be very different. Our data shows that guests booking leisure stays are much less likely to care about earning or redeeming points (30% say this doesnt influence their hot

23、el choice) compared with business travelers, where 82% are likely to book a hotel where they can earn points. However, its clear overall that the desire for earning loyalty points is in decline in favor of more immediate rewards and experiences. 61% of guests think a loyalty program based on experie

24、nces rather than points-based rewards would be appealing. Propensity to use loyalty programsMore loyal or less loyal 26% 51% 23% 24% 46% 29% 32% 45% 24% 46% 40% 14% Pre-millennial (18-24) Pre-millennial (18-24) Millennial (25-34) Millennial (25-34) Gen X (35-54) Gen X (35-54) Baby boomer (55+) Baby

25、boomer (55+) Less loyal than before As loyal as before More loyal than before Rarely join loyalty programs Only sign up to select, relevant programs Sign up to every loyalty program 18% 49% 32% 14% 48% 38% 18% 52% 30% 19% 62% 19% Guests demonstrate their loyalty to hotels in terms of both activity a

26、nd behavior Question: Thinking about the hotel chains you are most loyal to, why would you say you are loyal to them? However, almost half of hotels will only take into account activity measures of loyalty Activity Behavior recommend these brands to friends 33% visit these brands more frequently tha

27、n others 33% become loyalty card members 20% follow brand activity online 19% spend more with these brands than others 20% post reviews about the brand online 17% 40% activity only The Rise of Social Advocacy There is no doubt that social media has become a massive player in building brand awareness

28、 as well as brand loyalty. As guests increasingly interact through social media channels and look to social media influencers for unbiased opinions, so the impact of these channels on their choices grows, with an ever-growing number of guests across all age groups increasingly willing to share brand

29、-related content through their own social media. Guests think its essential for hotels to have a presence on social media and will trust social media influencers over and above traditional advertising. More than half of all respondents said they are likely to research brands on social media before b

30、uying and share photos of hotels that stand out on their social channels. And just under a half are likely to feature a hotel on social media in exchange for a reward or offer, with 46% saying they would link social media activity to a rewards program with automatic rewards for posts. 57% are likely

31、 to research brands on social media before buying 56% are likely to share photos of the hotel that stand out on social media 48% are likely to feature the hotel on social media in exchange for a reward/offer 46% are likely to link social media activity to a rewards program with automatic rewards for

32、 posts Guests think social media influencers are more trustworthy than traditional advertising or celebrity endorsements. It is essential that hotel brands today have an active presence on social media Hoteliers used and recommended by social media influencers are more trustworthy than those recomme

33、nded by celebrities YouTube reviews are more trustworthy than branded advertising or communications Social media influencers are more trustworthy than generic customer reviews Disagree Neutral Agree 17% 30% 52% 20% 37% 43% 25% 38% 37% 33% 35% 32% Personalization: Connected and Immediate When it come

34、s to hotel experiences, for guests personalization is about being recognized as an individual, with a level of service that goes beyond a traditional brand experience and it very much centers around two core ideas: connection and immediacy. The former is perceived by consumers to be a service that i

35、s valuable or relevant to them personally they do not want to receive generic, cookie-cutter offerings; they want their uniqueness to be recognized. Immediacy is pretty much what it says on the tin how can a service make everything about the guests whole experience smooth and easy. For loyalty progr

36、ams to remain relevant, hoteliers need to aim for a level of personalization that feels niche, not mass. As new legislations come to pass, such as General Data Protection Regulation, and guests concerns around privacy grow, traditional approaches to segmentation and offer targeting will become obsol

37、ete. Understanding guest behavior and the role of influencers in predicting a guests next action will be essential to landing offers that consumers want to receive - and in turn - act on which will ultimately drive increased loyalty expressed both in terms of activity and behavior. For loyalty progr

38、ams to remain relevant, hoteliers need to aim for a level of personalization that feels niche, not mass. Connected is being recognized as an individual. Immediate is about making hotel experiences effortless. Connected Immediate think personalized offers based on their stated preferences are appeali

39、ng 69% think Immediate benefits are more appealing than accumulating points 78% think a more personal service from staff is appealing 65% think a loyalty program that can be used at a range of brands is appealing 75% think personalized offers based on purchase history are appealing 65% think frequen

40、t rewards / offers which are not dependent on earning / redeeming points are appealing 73% Loyalty programs that are truly personalized are very engaging for guests. find appealing 87% find appealing 86% find appealing 65% find appealing 90% Personalized service from hotel staff that understand my p

41、references and show me relevant excursions, recommendations and offers A mobile app that provides relevant and personalized information about the hotel (e.g. navigating the hotel, booking a table at the restaurant, booking activities or experiences) Personalized offers based on purchase history Comp

42、leting a questionnaire about personal preferences as part of a new loyalty program membership so that offers can be tailored The Role of Technology For hoteliers, technology plays a key role in driving connection and convenience. With technological advances being made at a dizzying pace, there is en

43、ormous scope for fine-tuning and tailoring loyalty schemes to individuals. And the majority of guests are very open to advanced technologies that support brand experiences without being invasive. They also think the idea of being able to receive personalized service from hotel staff who understand t

44、heir preferences and show them relevant excursions, recommendations and offers is extremely appealing and 86% would be willing to complete questionnaires about their preferences as part of a new loyalty program membership so that offers can be tailored to them. When it comes to convenience, more tha

45、n 85% of guests love the idea of mobile apps for check-ins and check-outs, using virtual reality to explore hotel rooms and then having the option of specifying a particular room when booking, and staff having access to a mobile or tablet so they can offer guests services from anywhere, not just the

46、 front desk. However, for some guests, especially older demographics, things such as room service robots can be a step too far, crossing the line where personalization becomes invasiveness. The majority (90%) love the idea of being able to accept or reject offers so that hotel loyalty programs can l

47、earn what products and offers are of most interest. Guests are open to the idea of new and advanced technologies that enhance the hotel experience. Redeem loyalty points or rewards for new experiences (never tried before) based on social media profile and preferences 83% find appealing Voice-activat

48、ed technology such as Alexa, Google Home, and Siri to control room lights, ambience, and place room service orders find appealing 73% Wearable technology that can be used to interact with the hotel experience from room access to personalized experiences for the whole stay find appealing 77% A mobile

49、 app that supports check-in, checkout and provides relevant and personalized information about the hotel (e.g. navigating the hotel, booking a table at the restaurant, booking activities or experiences) find appealing 88% The ability to explore hotel rooms through Virtual Reality before deciding which hotel to stay in or which room to choose as part of the booking process find appealing 87% The Four Loyalty Typologies The research uncovered four main types of guests: The Broadcaster, The Enthusiast, The Lazy Loyal and The Seeker, which people will flip between depend