Research: Hotel loyalty programs not a top priority when booking

Airline frequent-flyer programs are becoming less attractive to customers. It’s hard to get a flight for free. With hotels, you can redeem the points much more easily.

According to research conducted by Market Metrix, loyalty programs rank fourth among reasons why consumers select a hotel (the top three reasons are location, price and past experience).

Measuring effectiveness

One measure Market Metrix uses to evaluate the success of a brand’s loyalty program is loyalty program effectiveness.

In 2009, 32.7 percent of guests said that the loyalty program was a primary reason in deciding where to stay. That number has grown to 34.5 percent in the first half of 2011. Among the major chains, the most effective programs in the hotel industry are Hilton Worldwide’s Hilton HHonors, Starwood Hotels & Resorts Worldwide’s Starwood Preferred Guest and Marriott International’s Marriott Rewards. Industry wide, approximately one of every three members of a hotel loyalty program said their membership was “very important” in hotel selection.

Program details

In the Hilton HHonors program, guests can “double dip” and accumulate points and airlines miles simultaneously with their hotel stay. Similar to frequent flyer programs, there are various tiers of membership. Diamond VIP, the highest tier level, offers such things as guaranteed 48-hour reservations and best available room pre-assignments.

InterContinental Hotel Group’s Priority Club Rewards is growing in popularity. With its low point requirement for free rooms, the points needed for free rooms and other perks are relatively easier to earn than with other programs.

Wyndham Worldwide’s Wyndham Rewards is attractive to budget travelers with more than 6,500 hotels under such brands as Days Inn and Super 8.

Guests love Marriott’s rewards program. Marriott rewards are easy to redeem, have no blackout dates and can be used for airlines, cruises, car rentals and more.

Starwood’s Preferred Guest program is especially well liked for the rewards offered to its elite status members and often provides benefits more generous than other high-status programs. Guests can qualify for free rooms based on less expensive stays in U.S. hotels, and then get free nights at more expensive destinations such as Rome.

Smaller hotel chains are developing successful loyalty programs of their own that, in many cases, outperform the major chains in program effectiveness. Global Hotel Alliance, a collection of more than 300 hotels, created a loyalty program called GHA Discovery that rewards guests with experiences instead of points (wine tastings, for instance). Stash Hotel Rewards allows guests to earn points for free nights at nearly 150 independent hotels across the country. Voilà Hotel Rewards, a points-based program for upscale independents, has about 235 hotels in its network. These efforts reflect a growing trend to help independents and smaller chains compete.