Recreation, Parks, and Tourism Administration Department
BS in Recreation, Parks, and Tourism Administration
Susan Mackenzie, Brian Greenwood
Loyalty programs enable companies to reward their return customers. In the hotel industry, a loyalty program is a useful and beneficial tool to improve their customer service and entice their guests to stay with them on return visits. The purpose of this study was to conduct a best practices study on loyalty programs in luxury hotel chains. The researcher used a best practices matrix to examine the loyalty programs of Fairmont Hotels and Resorts, Omni Hotels and Resorts, and Kimpton Hotels and Restaurants. The study found that companies should benchmark their programs by aligning their benefits with companies similar to theirs. Loyalty programs should try to offer differentiated rewards to guests to entice them to join that program. Hotels should try to create partnerships with other businesses to create advantages that are mutually beneficial for the guest as well as the company.