Travel Weekly - July 27, 2009

‘Loyal hotel’ guests go bargain-hunting

By Jeri Clausing

In good times and bad, consumers say val- ue is king when selecting a hotel room. So how do hoteliers sweeten the pot when rates are already about as low as they can go? During the current downturn, major hotel chains have been using aggressive promotions with their rewards programs to lure customers to their brands.

InterContinental Hotels Group is offering a coupon for one free night with every two nights paid, good at any of its hotels anytime. Starwood has a similar promotion: one weekend night free for every two paid visits. Marriott is giving three reward nights for the price of two.

Hilton’s promotions have focused more on double and bonus points. Even smaller chains like Omni are upping the ante with things like free ironing and coffee to all of its loyalty club members every time they stay.

“In the last six months we’ve seen a significant upturn in people joining the program,” said Don

Berg , vice president of loyalty programs at IHG. “I think some of it’s related … to the economic downturn and a lot of it has to do with the publicity around hotel loyalty programs.”

“People are starting to realize they have features that make them more valuable” than airline programs, Berg said, noting it’s much easier to get a free

hotel room than a free airline ticket using rewards.

Eileen Hanson, vice president of marketing strategy and communications for Hilton HHon-ors, agreed.

“By far we see more and more of our members engaged in the program,” she said. “Not only just earning points but on the redemption side as we add more and more rewards to the rewards store or unique programs. … I think everyone is seeing the value of hotel loyalty programs more than ever.”

While the flurry of promotions this year hasn’t necessarily brought in new travelers, hotel executives say such offers definitely sway those already

See HOTELS on Page 20

Increasing numbers of leisure travelers have been joining hotel loyalty programs.

P resents

TravelPeople:

A Weekly Audio Webcast

Every Tuesday 2:00 p.m. E.D.T
CONVERSATIONS WITH NEWSMAKERS

A WEEKLY DISCUSSION FEATURING
PERSONALITIES AND ISSUES IN THE
NEWS. THE AUDIENCE WILL HAVE
AN OPPORTUNITY TO SUBMIT
QUESTIONS TO BE ANSWERED BY
TRAVEL WEEKLY’S EDITORS OR THIS
WEEK’S GUESTS IN THIS ENGAGING
INTERACTIVE SESSION.