Loyalty Programs

Abstract

Compared to hotel frequent-guest programs, airline frequent-flyer programs have gained not only more membership but greater penetration of key groups of travelers, notably, business travelers and high-income, high-frequency travelers. Based on a survey of 287 guests at nine hotels in Seattle, Washington, airline loyalty programs have gained considerably greater awareness among travelers than have hotel programs. One-third of the leisure travelers in this survey reported that they were not aware of hotel loyalty programs (even though they were staying in a hotel). The study found that travelers who join both hotel and airline loyalty programs are also the most frequent travelers. By far, the proportion of travelers who join airline frequent-flyer programs exceeds that of those who have joined hotel frequent-guest programs. Perhaps most critically for hotel programs, the surveyed guests would prefer to receive airline miles for their hotel stay than to receive hotel points.