As more people continue to travel all over the world for business and pleasure, so the battle for hotel guests has become more and more intense, and unsurprisingly hotels are deploying a full range of loyalty programs and incentives to try and hook in guests, build up brand loyalty and reap the rewards of return business.
The Loyalty Divide reveals that restaurant operators have a critical disconnect with consumer expectations on loyalty engagement and incentives while failing to recognise the importance of social influencers.
Hospitality is an industry that celebrates personal interactions and a rich knowledge of guest behaviors, said Mike Webster, senior vice president and general manager, Oracle Hospitality.
World-class operators are now leveraging adaptive intelligence to deliver unique connections based on guest preferences as they move beyond pure loyalty and discount schemes. The result is greater engagement and social advocacy for new dining connections.
Restaurant operators believe that guests would openly sign up to every program (50 %) compare to the reality that consumers are much more selective and look for programs with real relevance: 49 % only sign up to select relevant programs, 27 % sign up for every program, and 23 % rarely join such programs.
The divide between restaurant offerings and consumer perception is more apparent when evaluating loyalty relevance with 47 % of restaurant operators believing their offers are mostly relevant while only 27 % of guests think those offers are most relevant and another 27 % say offers are rarely appropriate.
Restaurant operators view loyalty as a restaurant and customer the only relationship with 63 % of restaurants noting that they do not collaborate with influencers despite 40 % of consumers agreeing that they are more likely to trust recommendations by YouTubers.
The study was conducted in February 2018 among 13,000 consumers and 500 businesses across retail, hotels and restaurants in 9 countries across North America, Europe, Latin America and Asia Pacific: Australia, Brazil, China, France, Germany, India, Mexico, UK, and the USA.
This Report uncovers a surprising divide in perception between how businesses view loyalty programs and what guests think. Read the report to find out how to bridge the gap.