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Hospitality operators failing to tailor loyalty programmes to consumers

Hospitality operators failing to tailor loyalty programmes to consumers

Hospitality operators are failing to tailor loyalty programmes to consumer demands according to a new global study.

Research by Oracle Hospitality found that while 54% of hotels and 47% of restaurants believe their loyalty offers are relevant, their customers don’t tend to agree.

Only 22% of hotel guests and 27% of restaurant diners believe offers are mostly relevant while 39% of guests and 27% of diners believe they are rarely relevant.

Oracle’s Loyalty Divide reports for the hotel and restaurant sectors found that consumers are seeking more personalisation in their hospitality experiences. More than two-thirds of hotel (69%) and restaurant (68%) customers said that personalisation based on stated preferences is appealing.

Hotel and restaurant operators have reason to be optimistic about the future of their loyalty programmes according to the research. Millennials in particular were found to have a higher propensity to loyalty schemes and say they increasingly make decision based upon loyalty to an operator.

Social media was also found to be a vital component of the hospitality industry with 57% of hotel guests and 51% of restaurant guests using it to research brands before buying.

Mike Webster, senior vice president and general manager at Oracle Hospitality, commented: “Hospitality is an industry that celebrates personal interactions and a rich knowledge of guest behaviors.

“World class operators are now leveraging adaptive intelligence to deliver unique connections based on guest preferences as they move beyond simple loyalty and discount schemes. The result is greater engagement and social advocacy for new dining connections.”

Oracle Hospitality conducted its research in February 2018, polling 13,000 consumers and 500 businesses in nine countries.

Read the full Loyalty Divide – Operator and Consumer Perspectives 2018 reports for hotels [http://www.oracle.com/goto/hotel-loyalty-divide] and restaurants [http://www.oracle.com/goto/restaurant-loyalty-divide] >>

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