Loyalty Pay$

Anindita Chattopadhyay tells you how to make the most out of hotel loyalty programmes

What would you need to do to be entitled to free upgrades, discounts, faster check-ins, late check outs, complimentary use of health clubs and a whole host of other freebies ? Simple – join hotel loyalty programmes.

Loyalty programmes have become an important tool for hotels to woo the eluding guest. A significant marketing strategy to enhance business and compete with other hotels. The trail of the trend goes back to the early 1980s when major US airlines launched frequent flyer schemes in the United States of America. Taking the cue, the hotel industry towed the line. Today, virtually every major hotel group has its own reward programme for frequent guests. The value-addition coupled with extra attention is meant to reinforce and increase brand loyalty among guests and attract new valuable customers. However, there’s no denying the fact that loyalty rewards are an important factor that comes into play in the business executive’s choice of hotel. The cost of accommodation and food eats up a big chunk of the business traveller’s budget. Hence, it is a high-priority area for most companies to get best rates and facilities from hotels for their executives who travel within the country and abroad with any frequency.

With so many programmes at hand, as an individual traveller it is important to know your place in the scheme of things. It is a quid pro quo situation — give business, take benefits. Apparently, you gain because you get recognition and attention at no extra cost. Most loyalty programmes don’t come for a premium, that is, enrollment is free. You can become a member even if you spend just a night. The level of your membership and subsequent benefits are based on the number of stays per calender year, or amount of rupees/dollars spent.

The players
Welcom group’s The WelcomAward programme, Taj’s Innercircle, Le Meridien’s Moments, Six Continents’ Priority Club, Marriott’s Marriott Rewards - all come free. However, Oberoi’s Top comes for a membership fee of Rs 575 for residents of India and USD 30 for others. All these programmes are valid for participating hotels worldwide, except for WelcomAward, which is only for ITC-Welcomgroup properties within the country and not for Sheraton (their exclusive partner) properties abroad.

What benefits do you get?
All programmes promise exclusive privileges and benefits, specially designed for you. To recognise and reward the esteemed regular users of the hotel chain. However, the members are categorised as the good, better and best — depending on how loyal you are, your facilities and rewards vary. In general, room rates are not normally affected by hotel loyalty cards. However, members of such schemes receive priority booking, free upgrades subject to availability and early check-in or late check outs - all of which enhance the business traveller’s stay and, in turn, can save money. In addition, points can be collected and redeemed for free travel packages, specially selected branded merchandise, room upgrades, free weekend stays, fine dining and even free flights. Most hotels have roped in travel industry partners to offer value-add to their loyal guests. Airlines tie up with hotel chains for frequent flyer schemes. So do car rentals and banks. For example, Hyatt’s Gold Passport loyalty programme is linked to Aeromexico, Qantas, American Airlines, Cathay Pacific, British Airways, Continental Airlines, Lufthansa and Singapore Airlines as well as Alamo Rent-a-car and Avis car rental companies. Intercontinental’s Priority Club and Meridien’s Moments allow you to convert your point balance to an account with one of their many (a long list) international airline partners. However, WelcomAward stars can be converted into miles only with Indian Airlines, Air India and Jet Airways. In the case of the Oberoi, each time you settle a room bill with your American Express Card or Hong Kong Bank credit card, you will earn bonus Top points - an additional 2.50 points for every Rs 1,000 spent. Also bonus points on all car rentals and air tickets purchased through Mercury Travels. Plus the opportunity to earn mileage points with partner airlines Air France, Jet Airways, Al Nippon Airways and Asia Miles. From time to time, Taj announces special promotions with certain airlines. If you predominantly use one airline it is better to use associated hotel chains to boost your air miles.

Six Continents looks like a good bet as points never expire, there is no black out period for rewarding nights and extra facilities offered are more. In comparison with other programmes, Hilton Honors is unique in the sense members can collect points by staying at any Hilton hotel and at the same time collect miles on their membership card on any one of the 60 airline partners’ frequent flyer programmes. Thus collecting both points and miles for the same stay. This exclusive Hilton trademarked Double Dipping formula is great news for frequent travellers as saving points and miles become quicker. Unfortunately, there isn’t any Hilton property in India. But those frequently travelling to the Middle East and South East Asia may find it a good option.

Most business hotels offer an executive or club floor for business travellers. This is usually on the top floor of the hotel and is designed to offer privacy and the ultimate in service and comfort. Now this comes for a price - that is, an annual membership fee. Six Continents Group’s Six Continents Club card has an enrollment fee of USD 150, Sheraton Plus membership card comes for Rs 5000, Hyatt Club card costs Rs 5,500, The Park’s Preferred at the Park is available for Rs 500. Benefits normally include superior accommodation and additions such as express check-in, late check out, use of an executive or club lounge, which offers breakfast and evening cocktails on a complimentary basis, plus complimentary use of small meeting rooms and no extra charge for double occupancy. Other advantages include a meet-and-greet service at the airport, complimentary use of health facilities, discounts on dining and express laundry and dry cleaning services, weekend certificates. The Sheraton Plus membership is not a bad investment if you’re frequently travelling abroad because it offers tempting savings. It entitles you to a reduction on room tariff ranging between 20-50 per cent at Sheraton hotels and resorts (that takes care of your vacation also) across the globe, 20-50 per cent off on food bills depending on how many people you are dining with (50 per cent off when two people dine), plus priority reservation. Preferred at Park also offers a 50 per cent discount on room rates.

When going for a paid loyalty programme, keep in mind the destinations where a particular chain has properties. In India, ITC-Welcomgroup has 47 hotels in over 42 destinations, followed by Taj, which has 43 properties. These two outnumber the other chains. International chains like Meridien, Radisson, Marriott or Intercontinental have presence mainly in major metros and a few leisure destinations. Although Sarovar Park Group and Choice Hotels with brands like Quality Inn, Comfort Inn and Clarion have good presence across the country, the loyalty programme of the former is not very extensive, while the latter is yet to come up with a loyalty programme. The Oberoi group, with 20 properties in India and 11 overseas in destinations like Australia, Egypt, Indonesia, Saudi Arabia, Sri Lanka and Mauritius will take care of your domestic and international needs quite well.

While loyalty programmes are one way of attracting guests, the main loyalty factors are service standards, location and facilities. Nurturing a relationship depends on attention to customers’ needs and serving them efficiently. One faltering step and the client is lost forever. And who knows how many more by word of mouth. Rajat Sharma, business manager, Electronic Data Systems, a loyalist to Sheraton and Taj brands, thinks only quality service can buy loyalty because frequent travellers look for a home away from home. “Location is important, but service comes first. Recently, I had checked in at a newly built much-publicised five-star boutique business hotel in Chennai and within an hour I understood the mistake I made. On another occasion, I had stayed in a five-star property in Pune instead of Taj Blue Diamond. The food served in the room was cold and it took 45 minutes to get a shirt ironed after promising to deliver it in 15 minutes. So, I stick to Taj or Sheraton,” he says.

Location is particularly important for the business or corporate traveller because he or she needs to be near a city’s business or financial centre. It not only saves time and commuting hazards (read stranded in a jam), but enables one to meet more people and entertain guests even late in the evening. It goes without saying that airport hotels are, on the whole, not ideal for business travellers because they are usually away from the city centre. Geared to short stays and odd arrival and check out times, they can be worthwhile if you need a room for a day on a stopover so that you can have a wash and rest and meet someone for a short business meeting.

Apart from location, facilities offered are of prime importance. In today’s competitive world everybody looks for value for money. Companies are prepared to pay for executives to stay in hotels with a wide range of facilities and benefits because more the advantages and comfort level, more profitable the business trip will be. Take the example of Park Royal Intercontinental in New Delhi. The property has introduced a free jetlag recovery kit on arrival, a currency pack (for foreign guests) to ensure you are not left fumbling for change, free insider concierge and round-the-clock gymnasium and business services. The hotel has seen a rise in repeat guests from 25 per cent to 40 per cent since January this year.

So, when considering your choice of hotels weigh, the added value found in hotel loyalty programmes, rather than going for the lowest rates. Prices should not be the only deciding factor. Safety, location and services are important too.