As the competition among hotel loyalty/rewards programmes continues to heat up, hotel chains having multiple brands, wide distribution networks and diverse partnerships demonstrate distinct advantages in satisfying their members, according to the J.D. Power 2016 Hotel Loyalty/Rewards Programme Satisfaction Report.
The report measures customer satisfaction by examining six factors (in order of importance): account maintenance/management (23%); ease of redeeming points/miles (22%); ease of earning points/miles (18%); variety of benefits (16%); reward programme terms (16%); and customer service (5%). Satisfaction is measured on a 1,000-point scale.
Overall satisfaction with hotel loyalty/rewards programmes improves to 711 in 2016 from 701 in 2015. Among the highest-ranked brands in the report, satisfaction with their loyalty/rewards programmes is influenced by ease of earning and redeeming points, a diverse partnership network and multiple hotel brands. The ability for a customer to accumulate points and easily redeem them for one of many locations or an upscale property is highly satisfying – and it is a competitive differentiator among loyalty/rewards programmes.
“Members of hotel loyalty/rewards programmes see great value in their programme of choice, and they are highly satisfied when they can easily earn and redeem points to select preferred locations in various locations,” said Rick Garlick, global travel and hospitality practice lead at J.D. Power. “Programmes with hotels offering multiple brands, partnerships and locations have a strong competitive advantage. However, once customers arrive at a location, their actual hotel experience plays an important role in the overall experience with their programme.
“Loyalty/rewards programme administrators need to keep this in mind while exploring opportunities to create innovative customer centric perks.”
Report Rankings
* Hilton HHonors and Marriott Rewards rank highest in a tie among hotel loyalty/rewards programmes, with an overall satisfaction score of 741 each. Satisfaction with Hilton HHonors improves by 14 points and Marriott Rewards increases significantly by 24 points. This is also the second consecutive year Hilton HHonors ranks highest in this report.
* Hilton HHonors scores high in the account maintenance/management factor (756) and also performs particularly well in the reward programme terms and variety of benefits factors.
* Marriott Rewards scores high in ease of redeeming points/miles (755) and performs particularly well in reward programme terms and ease of earning points/miles.
* Following Hilton HHonors and Marriott Rewards in the rankings is IHG Rewards Club3 (722).