Stop rewarding loyalty at the cost of the bottom line

Forbes recently released a list of the world’s most rewarding hotel loyalty programmes. The tally saw Wyndham Rewards replace Marriott at the top of the pile. The list, compiled by the Idea Works Company, calculated that for every dollar spent on a Wyndham room, the loyalty member received an extra 13.6 cents of value in the form of room upgrades, free rooms or other benefits.

Wyndham, which operates more than 7,800 properties, revamped its rewards programme in 2015. The group now offers 10 points per dollar spend, with every award room worth 15,000 points. Points accumulate quickly, and rewards can be enjoyed after just a three-night stay in a $500-a-night room. Since relaunching, Wyndham has seen redemptions up 90% while memberships are up 17% to 47.5 million members.

The loyalty programme undoubtedly rewards hotel guests, but what impact do these discounts, value-adds and benefits have on the bottom line?

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