Jaffe Juice: Loyalty is relative (but it sucks to be in the hotel game)

April 30, 2008

Loyalty is relative (but it sucks to be in the hotel game)

I just took this poll on Inside Flyer and thought I'd share the community's results with you. In short, it is pretty amazing to see how two related industries - air travel and hotel - have such different loyalty levels (at least when it comes to switching)

There's no question that the beleaguered airline business has done a better job (relatively) at differentiating it's otherwise commoditized serviced (A to B) than the hotel game. Compare flat beds and in-seat on-demand entertainment systems to wireless broadband internet (free or fee) and plush pillows for example.

Here are the results:

"Changing Programs"
(Mar 31, 08)

1. Would you ever consider changing your primary hotel program?
(You have answered this already)
75.9%	Yes
24.1%	No

2. If yes, what would make you change?
(You have answered this already)
6.3%	Change in company travel policy
18.5%	Change in the award chart that did not seem reasonable
49.8%	Saw what seemed like a more attractive benefit from another program
13.8%	Read a comparison of programs which made me rethink my choice
3.1%	Recommendation from a fellow traveler
8.6%	A different reason, not sure what it might be

3. If yes, would the change to another hotel program most likely be because of ...
(You have answered this already)
26.7%	A richer award chart
43.2%	Better benefits
5.6%	No blackout dates (hate not getting the award I want)
14.4%	Nicer hotel properties for redemption
10.1%	A higher status level

4. Would you think differently about changing your hotel program than you would your airline program?
(You have answered this already)
67.4%	Yes
32.6%	No

Comment Total: (2)

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Comments

After working for a hotel operator here in the UK for 2 years, it has indeed become increasingly difficult to build loyalty in this industy.

Despite being a leisure hotel, therefore not attracting the frequenct business visitor, we saw a major decline in repeat business and customer loyalty.

The UK leisure hotel market has become highly competitive over the last 10 years with a surge in small boutique hotels as well as increased leisure competition by Hilton, Marriott and IHG.

The internet has also put the customer in control, allowing them to easily compare facilities, locations, prices and deals.

Posted by: Matthew Finch

I travel to dallas 25 times a yr a just left staying at a starwood hotel to a small indipendent due to quality service. Why does your pole not address that

Posted by: lisa