Software firm Revinate has released the 2019 Guide to Hotel Loyalty, analysing loyalty programs of over 200 hotel groups to uncover industry best practices.

With the industry’s ever-changing landscape, the new free resource aims to determine the best strategy for driving repeat bookings.

The ‘software as a service’ (SaaS) company analysed data from around the world to understand the economics of traditional loyalty programs. It found that hotels with less than 30,000 rooms cannot profitably support a proprietary points-based loyalty program.

“The barriers to realising ROI”

Peter Van Dorn, Revinate’s loyalty industry consultant, explained: “Based on our analysis, the barriers to realising ROI on proprietary points-based loyalty schemes are pretty clear for hospitality groups with less than 30,000 rooms. Fortunately, small and medium-sized hoteliers have many other effective strategies and tactics available to increase customer lifetime value and improve other measures of guest loyalty.”

Same objectives — without the overhead

The guide focuses on the insights and best practices that can enable small- to medium-sized hotels and brands to drive loyal behaviour.

“Traditional points-based loyalty programs are failing smaller brands”

Kelly Robb, Revinate’s VP of marketing and growth, added: “Through our analysis of the industry’s loyalty programs, it’s clear that traditional points-based loyalty programs are failing smaller brands. The good news is that not only are customers ready for a change in how they’re being marketed to, but new CRM technology can achieve the same objectives as a traditional loyalty program without the overhead.”

Revinate is a tech firm in San Francisco, USA, backed by Silicon Valley investors. The company leverages data to drive direct bookings and improve guest satisfaction.