Developments within the hotel industry
The first half of the year 2017 has been very good for the hotel industry due to the increase in overseas investment. It has been estimated that around £2billion worth of property sales, with a prediction to go beyond £5billion by year end, has mostly come from overseas investors.
It seems a favourable exchange rate has been the motivation for these overseas investors, who account for over £1billion of the transactions and about £800 million of the invesments have been domestic
One other interesting issue within the sector that is a source for debate, has to do with ‘Hotel Loyalty Programmes’ and how to create better programmes in an effort to maximise the potential return that can be derived.
There are many financial and non-financial benefits to a loyalty program such as eliminating price based competition between competitors, creating direct relationships which can help with retaining customers and at the same time creating brand advocates.
The idea is that loyalty programmes strengthen ties with guests by reinforcing brand recognition and rewards for their loyalty. These programmes help to develop profiles for their customers based on their exhibited habits during their stay, their transaction data and the input given by the customers themselves.
One of the ways to market these loyalty programmes is to make sure consumers are aware that they allow hoteliers to provide a more customised service that consumers receive and begin to demand once they have signed on to them. The ability for consumers to select what type of rewards they receive from their membership is also another draw.
As long as these loyalty programmes are seen as relevant and reliable to consumers, it is safe to say that more people would be willing to sign up for them. These loyalty programmes also need to have clear instructions on how consumers can redeem the rewards from these programmes.
Not being able to redeem gifts or having to deal with slow processes definitely put consumers off, which in turn would mean bad PR for hoteliers, as negative reviews tend to spread faster than good ones.
To discuss this further please get in touch with Chris Sutton, Head of Leisure and Hospitality.