How independent hotels can deliver highly personalized and eco-conscious rewards that delight guests and demonstrate shared values

The topic of climate change and sustainability has reached a fever pitch. The WHO predicts a $2-4 billion USD cost to public health, and it’s viewed as a national responsibility. From battery-powered cars to eliminating single-use plastic and embracing a more climate-friendly lifestyle, a worldwide commitment to sustainability is taking shape.

As green initiatives continue to take the world by storm, we quickly realize that no industry is exempt from its duty to reexamine and – where necessary – reimagine practices which may pose harm to our ever-fragile environment. Hospitality, as you might have guessed, is certainly no exception. Right now, hospitality brands aren’t simply catering to the modern guest; rather, they cater to the modern, increasingly eco-conscious guest. Now, more than ever, travelers care deeply about sustainability, and hotels are expected to welcome this culture shift in a quick, enthusiastic fashion.

While many aspects of the hospitality industry could benefit from a sustainable makeover, there is one segment with the potential to contribute to this movement that hoteliers might be overlooking: guest loyalty. After all, if the loyalty programs of the past were designed for guests of the past, shouldn’t today's loyalty programs be designed with the eco-conscious guest in mind?

A New Era of Sustainability

Skift wrote in December of 2021, “sustainability can no longer be an afterthought for travel companies. Those that make bold moves now to redefine how things work for a reemerging sector have the potential to become industry leaders in an altered world.” Author Matthew Parsons reiterated this sentiment in February of this year when he shared that travel brands have “little choice but to make a fresh start with their loyalty programs,” because they can’t keep extending points and status forever.

Ultimately, this industry shift should come as no surprise. Hospitality, as we know, has long come under fire for maintaining legacy platforms and processes past their expiration date, and, at the same time, the COVID-19 pandemic flipped the travel landscape on its head. A recent study by travel company Virtuoso revealed that four in five people (82%) said the pandemic has made them want to travel more responsibly in the future. Moreover, almost three-quarters (72%) said travel should support local communities and economies, preserve destinations’ cultural heritage and protect the planet. Not only that, but a new Sustainable Travel Report released by Booking.com revealed that a large majority of global travelers (87%) say that they want to travel sustainably. However, 48% indicate they never, rarely, or only sometimes manage to travel sustainably.

With the hospitality loyalty segment primed for innovation, and travelers demonstrating a desire for more sustainable travel experiences, isn’t now the perfect time to reinvent guest loyalty for an eco-conscious world?

What Does Sustainable Loyalty Look Like?

We’ve spoken at length about the perceived limitations of traditional, point-based loyalty systems. This age-old format is volume-based (often to a detriment) and relies exclusively on the appeal of delayed gratification, attempting to entice guests with the promise of rewards further along in their guest journey. Often, points are difficult to redeem or may expire before they can be leveraged, which leads – understandably – to guest frustration and disappointment. More importantly, though, is the fact that traditional loyalty systems often fail to aptly personalize their offers simply because they aren’t designed to be personal. These are generally sweeping, one-size-fits-all programs that offer a hierarchy of rewards, with perceived value increasing with each tier even if the offering doesn’t necessarily resonate with the guest earning it.

As we’ve learned, today's guest is increasingly interested not only in the value offered by the hotels they frequent but also by the core values that those hotel brands exhibit. They aren’t simply invested in the look and feel of a hotel – they want to know what brands care about, what they prioritize within their operations, and whether or not those values align with their own. So isn’t there a great opportunity to be found in focusing on rewards geared toward the conscious and environmentally responsible traveler? If guests are looking for a loyalty system that is both unique and tangible, couldn’t hotels shift to an instant-gratification rewards model that curates personalized, eco-friendly rewards?

In fact, a study by The Vacationer revealed that 83% of respondents said sustainable travel was somewhat or very important to them; however, almost half (48%) of respondents said they would opt for such trips only if it did not inconvenience them. This is an interesting and important caveat – sustainability is important to guests, but guests are still hesitant to sacrifice certain conveniences and comforts to achieve it. With this in mind, the prospect of sustainable loyalty becomes even more appealing. With the right rewards program in place, hotels can help move travelers along the path to sustainable choices in the most convenient and organically incentivized manner possible. Rather than asking guests to sacrifice in order to make conscious decisions, hotels can reward them with opportunities to benefit the environment with eco-friendly upgrades, services, experiences, and other relevant offers from a network of reward partners.

A New and Improved Path Forward

While traditional loyalty programs are often defined by unattainable and impersonal reward tiers earned by an accumulation of posts, Laasie offers hotels a fresh approach to guest loyalty via an instant gratification rewards model. Hotels can now use a comprehensive, AI-powered platform to effectively reward customers for their actions while generating insights and building dynamic, one-to-one relationships that drive engagement and revenue at any touch-point or interaction along the guest journey.

Finally, hotels have the means to provide their guests with infinite tiers of highly personalized and eco-conscious rewards that delight guests and establish goodwill and demonstrate shared values. If hyper-personalization and sustainability are the future of hospitality, only one question remains – what are you waiting for?

Ellis Connolly
Chief Revenue Officer

SAHARA Las Vegas has partnered with Laasie to reimagine an exciting new kind of guest loyalty program, the SAHARA Insider Program. Leveraging Laasie’s signature Retain platform, a powerful membership program created to cultivate dynamic, one-to-one relationships with guests, SAHARA has effectively enhanced its existing player's program to usher in a new era of guest loyalty.

SAHARA Las Vegas is completely remodeled and reimagined for a new era, offering guests an impressive variety of modern amenities and luxuries, an enticing selection of five-star dining options, and a world-class casino. Style and sophistication are synonymous with the SAHARA brand, and, with this in mind, the cultivation of a forward-facing technology stack remains of the utmost importance.

“We pride ourselves on offering guests a truly unique and intimate Vegas experience,” explains Kat Carrera, the Executive Director of Digital Marketing at SAHARA Las Vegas. “To offer this kind of experience at scale, we frequently examine our processes and platforms to identify opportunities for growth and evolution. To that effect, Laasie has been a great addition to our hotel loyalty technology stack. It has driven impressive booking growth in our direct channel while ensuring an instantly gratifying experience for our guests and no operational headache for our hotel staff.”

Harnessing the undeniable power of instant gratification and Laasie’s exclusive Rewards Network, SAHARA Las Vegas can now offer guests instant, high-value rewards at every interaction and touchpoint, both online and on-property. The new SAHARA Insider Program will grant guests access to Laasie’s open marketplace of local, national, and global rewards partners mindfully curated based on their interests and values. This platform is not only designed to delight guests and exceed expectations but will also seamlessly drive repeat transactions and grow customer lifetime value.

“With three distinct hotel towers that set a new standard for Vegas hospitality and personalized service, SAHARA has long been at the forefront of emerging trends and innovation,” shares Ellis Connolly, Chief Revenue Officer at Laasie. “When we think of leaders in the marketplace that are eager to explore bold new ideas and do things differently, SAHARA emerges as an obvious choice. Their commitment to personalization and exceptional service is unmatched. This partnership will introduce a new kind of loyalty program that will solidify and enhance their position as a sought-after destination and an industry leader.”

As an iconic Las Vegas experience, SAHARA will leverage this new partnership to better serve their guests and, more importantly, prove that guest loyalty isn’t a thing of the past – it just needs to be earned. “The SAHARA Insider program will drive revenue for our properties and give our guests access to exclusive experiences that are not to be missed,” shares Carrera. “We are incredibly excited to expand our partnership with Laasie with their next-gen loyalty product and continue to see their suite of instant-reward based products as differentiators for SAHARA Las Vegas.”

Laasie’s unique platform is unlike any other solution on the market, with a proven track record of increased conversions and net revenue. The lightweight, turnkey solution delivers incentives upon the desired action and rewards guests on the hotel’s website, while on-property, or traveling home. It also supports white labeling for all customer-facing interfaces to match a brand’s marketing guidelines.

To learn more about Laasie’s next-generation loyalty solution, please click here.

About Laasie

Laasie powers a new kind of loyalty for 1,200 hotels & resorts through AI and a network of 1,000+ instant gratification partners. Awarded the #1 Direct Booking Platform by HotelTechAwards, Laasie has driven $500 million in direct bookings. Today’s savvy customers are uninspired by yesterday’s rigid loyalty programs, often leaving with unused points and limited brand affinity. Laasie leverages AI to drive conversion and loyalty with personalized, instant rewards that motivate customer actions like booking directly, taking a survey, joining a marketing program, and more. The result? Customers enjoy enriched experiences with each brand interaction and partners benefit with increased net revenue, actionable data insights, strengthened customer relationships, and a scalable loyalty program that increases the lifetime value of every customer. To learn more, visit laasie.ai

About SAHARA Las Vegas

SAHARA Las Vegas epitomizes the timeless soul of Las Vegas. With a bold, sophisticated flair and a boutique approach to personal service, SAHARA provides guests an intimate and unexpected experience that sets a new standard for Vegas. Completely remodeled and reimagined for a new era, SAHARA offers three distinctive hotel towers, a variety of five-star dining options, and a world-class casino. With unexpected delights around every corner, SAHARA embodies the style, sophistication and playful sense of possibility that’s truly the spirit of Vegas - and brings the iconic Vegas experience to a whole new generation.

Ellis Connolly
Chief Revenue Officer

What is the best way to incentivize behavior? This line of questioning keeps marketers and business owners up at night. Why? Because brands can’t protect their bottom line without generating revenue, and they can’t generate revenue without nudging their customer toward a desired purchase.

Hospitality professionals, especially, are familiar with this challenge, as travelers are constantly inundated with options and competing product offerings at every stage of their journey down the sales funnel. Moreover, guest loyalty is increasingly difficult to earn and maintain, even after they have clicked ‘book now’. The modern guest is both particular and elusive – eager to travel and explore the world but often not enamored enough by any particular brand or OTA to exclusively hand over their business without carefully considering competitor offerings. Guests today don’t just want the best-perceived deal – they want the best service at the best value, and it’s up to hotels to edge their way to the front of the line with compelling, value-driven offers and effective, personalized marketing.

Fortunately, hospitality brands can effectively influence and predict how current and prospective travelers will engage with their product or offering with the right tools and strategies. In simple terms, if hoteliers understand the ‘why’ behind a purchase decision and identify ways to capitalize on the purchase moment, their property will be better equipped to stand out within an increasingly competitive marketplace. And while there is no perfect recipe for earning the favor of every potential guest, there is a key ingredient that has certainly earned its place in the kitchen – instant gratification.

Is FOMO Really Your Best Bet?

The term “FOMO” (fear of missing out) was first introduced in 2004. It was later added to the Oxford dictionary in 2013 as social media created an environment where FOMO reigned supreme. During this time, marketers realized that they could use this new social phenomenon to drive purchase behavior and/or consumer participation. How? Leveraging the fear of missing out (on a great deal, great experience, or fleeting opportunity) encourages consumers to make an impulse purchase or decision. The principle was simple – “Buy now, think later,” and brands who utilized this approach hedged their bets on the assumption that consumers would rather potentially regret an action than regret failing to act and becoming a victim of FOMO.

FOMO marketing can be achieved in a number of ways, including, but not limited to:

• Flash Sales: “Book Now or Pay More Later!”

• Invite-Only Sales: “VIP Access!”

• Seasonal Sales: “Our Biggest Sale of the Year!”

• Scarcity Messaging: “Only X Packages/Rooms Left” or “In High Demand!”

While this style of “urgency marketing” can be powerful, it can also be overused and, in some cases, may inspire feelings of distrust or resentment from customers. Although the desired outcome (a purchase decision) is positive in nature, this marketing approach ultimately relies on negative reinforcement (the fear of missing out) rather than positive reinforcement. In the realm of hospitality, specifically, this marketing style has also become rather saturated, and, amidst an increasingly crowded marketplace, it may feel to travelers that there is always a deal to be found, and the influence of FOMO wears thin.

Fortunately, this is where instant gratification comes in – taking the tried and true “FOMO” model and flipping it on its head to delight travelers at the moment of booking and encourage desired behaviors through positive reinforcement.

Instant Rewards, Instant Gratification

In 2017, Google researchers examined all the digital interactions in 60 seconds (on average), and the results might shock you. Google had 3.8 million search requests. More than 400 hours of video were uploaded to YouTube, viewers watched 87,000 hours of video on Netflix, and 65,000 photos were uploaded to Instagram. The takeaway? Consumers crave immediacy.

This is an important observation; just as fortune favors the bold, prospective travelers favor brands that cater to their need for instant gratification. Now, perhaps more than ever before, travelers don’t want to wait to be rewarded – any allure attached to the promise of a far-away perk is hardly tangible enough to inspire a booking decision or, more importantly, long-term loyalty. Instead, travelers are demonstrating a preference for the brands that not only personalize offers to be relevant but also offer immediate, high-value gratification attached to any purchase decision. No friction, no FOMO, no delay, just an instant reward at check-out reinforces their decision to book and inspires continued purchase behavior.

Some benefits of instant gratification rewards:

• Increases conversions

• Creates connections and builds trust through personalization

• Fosters customer retention and brand loyalty

• Captures information, preferences, and data

• It helps hotels learn more about their customers over time

• Reduces friction through seamless brand experiences

The positive purchasing psychology at work is easy to understand; by offering instantly selectable, personalized rewards at the moment of purchase, hospitality brands can nurture that customer at the most important point of the sales funnel. In simple terms, instant gratification helps to quell any feelings of buyer's remorse while building trust and connection with that guest before they even step foot on the property.

Moreover, with the help of artificial intelligence (AI) and big data, hospitality brands can use a comprehensive rewards platform to get to know their guests better, which places hotels in the best possible position to meet – and exceed – guest expectations with personalized offers. Beyond the purchase moment, hoteliers can continue to leverage instant gratification to drive repeat transactions and grow customer lifetime value as guests become more engaged and increasingly delighted by the service offered by their selected hotel.

In today’s fast-paced and competitive landscape, guests have high expectations of convenience and a low tolerance for delays, gimmicks, or friction. If hotels want to foster loyalty and connect with their guests in a meaningful way, they need to focus on developing instant gratification strategies that act as the ultimate conversion catalyst.

Ellis Connolly
Chief Revenue Officer
Laasie

Why do so many hotel loyalty programs fail? This is a good question, and it’s definitely one you should be asking if you are eager to set up a well-designed, effective loyalty program that mutually benefits your bottom line and your guests. These days, many guests feel loyalty programs no longer truly reward loyalty - but have become a marketing tool. In fact, less than half (46%) of high-value travelers are motivated by loyalty programs when booking travel. Why? Because many loyalty programs are barely hitting their mark.

There is also a discrepancy between hotel perceptions of loyalty programs. According to a study, hotel managers believe that 61% of guests sign up for loyalty programs while only 24% actually do in reality. Similarly, hotels perceive that 54% of guests will find offers relevant, while in reality, only 22% of guests believe that offers made by loyalty programs are relevant.

The hospitality industry sits atop the promise of guest-centric incentives, with a long list of loyalty programs. Many traditional loyalty programs have become a point of contention frequently presenting travelers with lackluster rewards or barriers to redemption that negate the desired effect of the program.

According to Accenture:

• Only 18% of consumers engage with every loyalty program they belong to.

• Just 22% of members say they are very satisfied with the personalization they receive in loyalty programs.

• 29% of customers wish that the rewards on offer were more interesting.

As explained in Deloitte’s Hotel Customer Loyalty survey, “to turn your customers into enthusiastic, even passionate brand devotees, you need to understand the patterns in how different travelers view and use rewards. And you have to use that insight to craft a program that stands above the ordinary and the expected.”

To understand what works (and perhaps more importantly, what doesn’t), we first must consider the most popular types of programs currently offered to travelers.

Points-Based Rewards

How It Works: Points-based reward systems operate on a basic principle – reward guests for taking action by offering them points they can redeem for free items or services, perks, upgrades, etc. These points do not hold any value beyond the brand offering them. Still, they can be leveraged for various actions even beyond booking/purchase behavior, such as social media engagement, reviews, and so on.

Often, point-based systems adhere to a tiered hierarchy that encourages guests to accumulate more points to reach a higher tier of perks and rewards. This format gives travelers a clear goal: the higher their tier (and the more they purchase from and engage with that hotel or airline), the more exclusive and exciting the rewards they’ll receive.

What It's Missing: Since point-based programs are free to sign up for, there is little to no barrier to entry in regards to participation; however, the ‘transaction first, benefits later’ often lacks the retention and enthusiasm it initially sets out to garner. According to a survey by Maritz Loyalty Marketing, 70% of customers abandon loyalty programs because it takes too long to gain enough points. Often, the rewards offered by these programs lack the personalization or perceived value required for those incentives to feel truly desirable or exclusive.

Ultimately, if hotels cannot recognize what perks guests really want, their point-based loyalty program will fail to incentivize guest behavior or long-term loyalty and retention truly.

Personalization is, after all, a primary driver of modern guest behavior. Google research indicates that 36% of travelers would likely pay more for services if a travel brand tailored its information and trip experiences to personal preferences or past behavior. Moreover, in some cases, the higher reward tiers, the more exclusive and desirable rewards are unattainable for most guests. By the time they accumulate enough points to unlock those rewards, some of their points may have already expired.

Cash-Back Programs How It Works: Cash-back rewards programs are reminiscent of points-based programs in many ways. Hotel guests become eligible for “cash-back” incentives when they spend a certain amount at a hotel. Much like your cash-back credit card, these programs are easy to opt-in to, and guests can earn a certain percentage of their purchase back to spend on the property or, in some cases, at partnering hotels and hospitality brands. Many independent hotels have tried this model in lieu of big-budget loyalty programs marketed by large brands.

What It's Missing: If it sounds pretty simple, that’s because it is – but what’s the catch? Just as the cash-back system is similar to its points-based counterpart, the criticisms associated with this model are related to perceived value and ease of redemption. According to loyalty veteran Howard Schneider, cashback rewards are not very motivational. “Cash is fungible and generic; and over time, consumers don’t even notice it,” and it comes off as nothing more than a small discount. Once cash is ‘returned,’ the guest can spend it anywhere else, which cuts off the cycle of profit for the hotel in question.

Frequently, guests may also face specific qualification barriers (i.e., minimum spend requirements) or will be unable to effectively utilize and enjoy their cash-back reward before the end of an earning period. Understandably, this can negate or diminish the perceived value of that rewards program in the eyes of a guest.

Instant Gratification Rewards System: A New Era of Loyalty

When considering the pros and cons of both points-based and cash-back loyalty systems, we recognize a theme – both models rely on delayed gratification. Yes, travelers are rewarded for taking action, but that reward cannot be realized or enjoyed until much later. Understandably, if the rewards offered down the line are perceivably lackluster, this format may not elicit much excitement from prospective travelers. Playing off this realization, a new kind of rewards system is born: an AI-powered, instant gratification loyalty model.

How It Works: The Laasie rewards system motivates customer loyalty with personalized, instantly-selectable rewards offered throughout the traveler’s journey (booking decisions, survey participation, etc.) via an extensive marketplace of high-value vendors. As soon as the guest performs the desired action, they can claim the personalized reward of their choice, which helps hospitality brands increase net revenue, drive member engagement, and build dynamic customer relationships. Finally, hotels can leverage AI and big data to motivate customer actions in a meaningful way, giving guests the instant gratification and recognition with every interaction they’ve desired – in a way traditional loyalty programs never could.

The best part? There is no downside. An instant-gratification rewards model provides tangible, undeniable value to both the hotel and the guest, leading to higher engagement and guest satisfaction. Using an instant gratification loyalty model, hotels enjoy increased booking conversion of 43% on average via a low-cost channel.

Much like point-based and cash-back systems, the barrier to entry is low but, in the case of Laasie’s reward platform, barriers to redemption are also eliminated. In contrast, the perceived value of rewards is heightened. Finally, hoteliers can benefit from a reimagined and reinvigorated loyalty program that isn’t an expense. Instead, it’s a true revenue driver and turn-key relationship builder unlike anything else on the market.

At the end of the day, there are two ways to grow your hotel’s business: first, attracting new guests. And second, by retaining existing guests and increasing guest lifetime value. As guest expectations evolve, the winners will be hotels that use innovative rewards programs that actively support guest desires for personalized offers, instant gratification, and tailored experiences.

Ellis Connolly
Chief Revenue Officer
Laasie

Let’s imagine a scenario. The end of the calendar year is approaching, and your vacation days are starting to burn a hole in your pocket, so to speak. It’s been ages since you took some time off, and you’ve been eyeing sunny destinations at every opportunity, ready to whisk your family off for a long-overdue break from reality. After browsing resorts along an especially picturesque strip in the Bahamas, you narrow it down to two contenders – both of them offer similar style rooms and upscale amenities and boast glowing guest reviews. Even the price points are similar; however, as your mouse hovers over the booking page, you notice that the second option (despite being slightly higher in cost per night) offers an instant, high-value reward upon booking. On the contrary, the first hotel just offers ‘loyalty points’ which, if you’ve learned anything in the past, never amounts to much. Which hotel would you select?

This scenario illustrates the difference between a traditional, points-based loyalty system and a rewards-based, instant gratification model. You may not know it yet, but the latter is poised to become the new standard of loyalty across the hospitality industry. Why? Because, quite simply, it works.

Like any marketing approach, traditional hotel loyalty systems must grow and evolve – or face extinction. Despite this, many hospitality professionals still cling to these legacy programs, frequently wiping away the proverbial cobwebs to argue their place in the modern consumer landscape. Unfortunately, points-based loyalty fails to delight and effectively reward guests, but it often fails to offer any tangible value to a hotel’s bottom line. From notoriously hard-to-redeem point schemes to lackluster reward tiers and expiration dates, traditional loyalty programs have settled into the background long since abandoning any real attempts at moving the needle for hotels or guests alike, especially in the post-pandemic world. The writing is on the wall – legacy loyalty is out, and instant gratification is in.

The Powerful Psychology of Instant Gratification

If you want to understand the power of instant gratification across the consumer landscape, look no further than Amazon. Amazon maintains its position at the top of the consumer food chain not necessarily due to the superiority of products but because it offers customers immediate gratification and unparalleled convenience. Almost anything they could want or need can be delivered directly to their doorstep in 1-2 days or, in some cases, within the same day. In his 2020 comedy special, Ronny Chieng speaks to this ‘phenomenon’ when he jokes that “the airspace above America is just Amazon prime!”.

Of course, the power of immediacy, especially while making a purchase (whether an item or a vacation), is easy to understand from a psychological perspective – it’s tangible and an instant hit of dopamine in a world primarily fueled by the desire for convenience. Lisa Gevelber, VP of Marketing for the Americas at Google, explained this by saying, “Impatience, immediate action, instant gratification, even some impulsiveness — these are just a handful of descriptors for behavior today. We have all been empowered and emboldened by information. With our phones acting as supercomputers in our pockets, we can find, learn, do, and buy whenever the need arises — or the whim strikes.” And it’s not just a need for immediacy. It’s also a need for personalization. To this effect, Salesforce reports that at least 45% of consumers will switch brands if a company doesn’t actively anticipate their needs. Not only that but their Shopper First research surveying 6000+ consumers and 1.4 billion e-commerce visits revealed that consumers increasingly reward brands that give the shopping relationship meaning beyond the transaction. In the world of hospitality, reimagined loyalty programs present the perfect opportunity to tap into a culture of instant gratification and personalization in a way that is meaningful to guests and hotels alike.

All Signs Point to Reward-Based Loyalty

In 2020, Mastercard reported that most US adults (90%) belong to at least one loyalty program, and 53% are in three or more – and yet many brands struggle to find ways to engage customers. In 2019, Mintel reported that, although 90% of US adults belong to at least one loyalty program, more than half of loyalty memberships are inactive. Often, this lack of engagement and satisfaction can be attributed to the simple fact that loyalty programs don’t offer incentives guests actually care about, or, if they do, those incentives are locked behind a tier that will take thousands of points to reach. The worst part? The points might expire before a guest even has a chance to use them.

As such, not only are point-based loyalty systems barely having an impact on the decision-making process of prospective travelers, but in some cases, they are even a source of contention between a guest and a hotel when expectations are not met. As you might imagine, this is hardly a winning formula for earning long-term guest loyalty.

On the contrary, AI-driven, reward-based loyalty offers guests instantaneous gratification at the point of purchase – no points needed. With this in mind, Laasie has created a new loyalty segment; hotels can finally motivate guest loyalty with personalized, instantly selectable rewards that genuinely excite guests while helping hotels increase net revenue and drive engagement. Leveraging a network of over 1,000 rewards partners across shopping, dining, and activities, Laasie empowers hotels to convert guest bookings while building dynamic relationships that inspire on-property spend, loyalty and positive reviews.

Much like Amazon, Laasie delivers exactly what a traveler wants – instantly. In an increasingly uncertain world, instant rewards and recognition are increasingly powerful tools. The world has changed, and guests want instant gratification and recognition with every brand interaction. Why not incentivize and reward guests in a way that actually delights them while driving revenue and long-term loyalty for your hotel?

The good news is you can – and you should. The even better news? It’s easier than you could ever imagine.

Ellis Connolly
Chief Revenue Officer
Laasie

By Sara O’Brien

Traditional points-based loyalty programs have been around since 1983, emerging as a unique way for major brands to build stronger relationships with their most valued customers. At the time consumers found them appealing and interesting, allowing hotel brands to generate buzz and additional revenue.

But much has changed in the last 40 years. Technology and A.I. (Artificial Intelligence) have evolved to be able to deliver things people want when they want them. Netflix recommends which movie you’d like to watch next and Amazon can tell you what you should buy for your child’s birthday this year. Yet, so many hospitality loyalty programs offer a generic, transactional “loyalty” experience that is no longer relevant for today’s consumer.

More and more, consumers are telling us that what has worked in the 80s just won’t work for them today. The average U.S. household belongs to 21 different loyalty programs, 78 percent of Americans abandon them,  and 44 percent complain about the lack of reward relevance, flexibility, and value. In short, loyalty programs are failing to effectively reward today’s consumers.

Imagine a loyalty program in which a guest receives immediate benefits rather than waiting weeks, months, years, and sometimes never accumulating enough points for a reward or reaching the next tier. Instead, imagine a program that gives the guest an instant, desired and personalized reward. That is loyalty done right! These types of rewards make the customer feel valued, appreciated, and recognized.

Below are 3 ways to award loyalty the right way for today’s consumers.

1. Get personal

It may be a simple concept, but we feel it bears repeating: What works for one customer will not work for all. Only 22 percent of guests believe today’s hotel offers are relevant, even though the majority (54 percent) of hotels believe they are. The disconnect is real, but there is a way to close the gap.

Hotel brands can continue pushing rewards that they believe will appeal to their customers, or they can actually learn what each individual wants through A.I. The way brands like Amazon, Netflix, and Spotify offer personalized experiences and recommendations has forever changed how consumers expect to be treated by brands, and it’s time for the hospitality industry to catch up.

A.I. allows brands to elevate relationships with their customers by personalizing the rewards based on their preferences and transactions, by learning and predicting what they want in real time. Let’s say a guest chooses a flight credit from Delta Airlines and a VIP shopping pass at Bloomingdales as their rewards, a next-generation loyalty program will remember that selection and offer similar rewards in the future, improving their experience and satisfaction with the brand.

2. Give choices and immediate benefits

New data confirms that consumers are dissatisfied with waiting to accumulate points and unattainable tiers. Seventy-eight percent of guests prefer immediate benefits and 61 percent want to choose their own rewards.

Loyalty programs in which you earn points to redeem something in the unforeseeable future will not move the needle for your brand. Consumers will either be frustrated that they need to wait or they will forget about and even abandon the program altogether.

Next-generation loyalty feels more like a relationship and less like a sales tactic by making guests feel valued immediately and frequently with personalized and instant rewards.

3. Offer experiences

With over 65 percent of U.S. travelers looking to experience something new while traveling, travel brands have an opportunity to enrich their guests’ travel journeys beyond the hotel property by offering unique and relevant rewards they can use before, during, and after their stay.

One way to elevate loyalty with experiences is to incorporate 3rd-party products and services. A concept that is coined as the “Amazonification” of travel, hotel brands can extend their offers beyond generic on-property perks, giving the guest control to select the incentives that will enhance their stay or provide additional opportunities to explore.

For example, with geo-targeting, we would know that a guest located in New York is looking to travel to Miami. In that case, her reward offering may include a complimentary 1-hour paddleboarding session in Miami as well as New York Yankees tickets to enjoy after her trip when she’s back in New York.

Wrapping it up

The brands that are truly disrupting loyalty understand the need to shift from a transactional experience to a personal and dynamic relationship with the customer. It’s up to hospitality leaders to see the writing on the wall, take note from other brands paving the way, and listen to their customers who are more vocal than ever about what they truly want.

About Us

LaaSie AI rewards direct bookings and loyalty the right way for hotels through instant gratification and A.I. We drive guests to book direct by offering relevant, immediate, and personalized rewards. Our Smart Engine delivers the right incentive to the right user at the right moment. A traveler can receive a flight credit from their preferred airline while enjoying VIP access and complimentary cocktails at their favorite restaurant in town. To date, we have incentivized over $300 million in direct bookings.

In addition, our technology enables us to power loyalty in a more relevant way for today’s consumers. Loyalty as a Service redefines how to engage and retain guests: No points. Just instantly gratifying rewards and a personal relationship with your guests.

Current hotel partners include Aqua-Aston Hospitality, Highgate Hotels, and Menin Hospitality. LaaSie was recently awarded the #1 Direct Booking Engine for 2019 by HotelTechAwards and won the Most Innovative - Judge's Choice Award at HITEC 2017.

hello@laasie.ai

Sources:
https://www.cnbc.com/2015/04/07/loyalty-members-hate-these-five-things.html
https://www.adweek.com/brand-marketing/challenger-brands-are-winning-at-instilling-loyalty-among-consumers/
https://www.revinate.com/loyalty-guide/
https://lodgingmagazine.com/oracle-study-reveals-travelers-perceptions-of-hotel-loyalty-programs/
https://research.skift.com/wp-content/uploads/2017/10/ExperientialTravelerTrends2018_Report.pdf