Booking corporate travel is vulnerable to money drain for a huge number of organizations around the world. Inefficient bookings and last-minute changes in the itinerary is the primary reason for monetary wastage. Therefore, it becomes crucial to make travel arrangements with diligence and foresightedness. To save highly on accommodations, business travel bookers and admins should be aware of various corporate hotel rewards programs. These programs assist in tapping into great savings on bulk bookings. This guide will help you understand the basics of these programs in detail.
What are corporate hotel rewards programs?
Corporate hotel reward programs are strategic initiatives designed to infuse loyalty between corporate and hotel chains. These programs are created and marketed to ensure a constant inflow of guests, avoid empty rooms, and boost hotel revenue. Whereas hotel rewards help corporates unlock exclusive perks, discounts, and privileges. Through regular stays, businesses accumulate points or status levels and are rewarded with access to upgraded amenities, complimentary services, and cost-saving opportunities. These programs ensure a symbiotic relationship between hotels and businesses.
Evolution of corporate hotel loyalty program
1950s-70s
The hotel industry was inspired by the airline’s frequent flier program success, and the idea of a corporate loyalty program germinated
1980s
The first loyalty program was offered by the Holiday Inn in 1983 with the launch of “Priority Club. Priority Club allowed guests to earn points for each stay, which could be redeemed for free nights or other benefits.
1990s
Other renowned hotel chains, including Marriott and Hilton, also introduced their own loyalty programs during the early 1990s. There was a transformation in these programs during this time and additional perks like late checkouts and check-ins, free amenities, and minimal cancellation fees started to become popular.
2000s
A big revolution was brought in by the Internet and online booking systems. Hotels started forming partnerships with credit card companies, allowing customers to earn points not only through stays but also through everyday purchases.
2008-2009
The global economic recession in 2008-2009 led to a decline in travel. Hotels responded by enhancing loyalty program benefits to retain customers during challenging economic times.
2010s
Personalization became a key focus, with hotels using data analytics to customize rewards based on individual preferences and behaviors.
2020s
The hotel industry continued to innovate with new features, such as dynamic pricing for reward nights and partnerships with ride-sharing services. The COVID-19 pandemic prompted hotels to introduce flexible policies and offer status extensions to reassure and retain loyal members.
2023
With the emergence of AI as a powerful tool, hotels are aggressively using data analytics to leave no stone unturned.
Importance of business lodging loyalty programs
1. Cost savings and value
As mentioned above, loyalty programs provide frequent and amazing company travel lodging bonuses on maintaining a certain number of regular bookings. These programs help enhance the living experience of the guests at lowered prices. Some of the privileges offered include late check-in options, complimentary hotel services, best-in-class amenities, free coupons for food, etc.
2. Customized services and consistent experience
Loyalty programs often use customer data to offer services based on preferences; thereby, creating a personalized and memorable experience for each guest. Loyal customers benefit from a consistent and reliable level of service. Familiarity with a particular hotel chain builds trust and comfort during business travels. Additionally, it enhances the overall process of booking, payment, and reporting expenses.
3. Additional savings and partnerships
These programs may extend beyond the hotel stay. This offers opportunities for members to earn points through partnerships with other verticals of the same hotel brand. Loyalty programs often provide flexibility in point redemption, allowing customers the freedom to choose how they want to use their accumulated rewards based on their preferences.
4. Community and networking
Some loyalty programs indulge a sense of community among members. Exclusive events and networking opportunities provide a platform for guests to connect with like-minded individuals. Loyalty programs often come with tiered status levels. Achieving higher status brings increased recognition and more substantial benefits, creating an aspirational aspect for customers.
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Types of corporate hotel loyalty programs
- Points-Based Programs: Companies earn points for each employee’s stay, which can be redeemed for free nights, room upgrades, or other amenities.
- Tiered Loyalty Programs: Level-based loyalty programs and higher tiers often provide more significant perks, such as complimentary breakfast, lounge access, or concierge services.
- Flat-Rate Discounts Programs: Flat-discounted rates are offered on room bookings for corporate guests without the need for reward points accumulation.
- Free Night Programs: Straightaway free nights are offered by the hotels based on the number of bookings made in a specified time period.
- Membership Fee Programs: Membership programs help with constant discounts and lesser cancellation fees. These also include additional perks exclusive to the members only.
- Partnership Programs: Programs that form partnerships with other businesses, allowing members to earn and redeem points with a broader range of services, such as car rentals, airlines, or dining establishments.
- Global Alliance Programs: Loyalty programs that operate on a global scale, allowing businesses to earn and redeem rewards across a network of affiliated hotels worldwide.
Tips and tricks for corporate hotel rewards
- Plan travel well in advance to take advantage of lower rates and increased availability for corporate hotel rewards.
- Negotiate with hotels for group rates or bulk bookings to maximize savings
- Regularly check for updates and promotions within loyalty programs to ensure that your organization is capitalizing on the latest offerings.
- Strategically redeem points for high-value rewards such as free nights during peak travel times or room upgrades for a more comfortable stay.
- Motivate employees to participate actively in loyalty programs by educating them about the benefits and incentivizing adherence to the chosen program.
Choosing the best hotel for your business trips with the right corporate hotel rewards programs is essential to saving fortunes. Additionally, good programs assist in gaining employees’ trust in the organizations by enhancing the overall experience of the trip.
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Corporate Hotel Rewards Programs FAQs
What are corporate hotel reward programs?
Corporate hotel reward programs are strategic initiatives designed to foster loyalty between corporations and hotel chains. These programs aim to ensure a constant flow of guests, avoid empty rooms, and boost hotel revenue.
What is the evolution of corporate hotel loyalty programs?
Corporate hotel loyalty programs have evolved significantly over the years. Inspired by the success of airline frequent flier programs, the concept emerged in the 1950s-70s. The first program, Priority Club, was launched by Holiday Inn in 1983. Throughout the 1990s and 2000s, additional perks like late checkouts and partnerships with credit card companies were introduced. The global economic recession in 2008-2009 led to enhanced benefits, and the 2010s saw a focus on personalization. In the 2020s, hotels continued to innovate with features like dynamic pricing, and AI emerged as a powerful tool for data analytics in loyalty programs.
Why are corporate hotel loyalty programs important for businesses?
Corporate hotel loyalty programs offer cost savings and value by providing frequent and significant discounts on regular bookings. They enhance the guest experience with privileges like late check-ins, complimentary services, and best-in-class amenities.
