A shift in loyalty among travelers was evident in a recent survey which revealed that some 68 percent of guests are now prioritizing personalized experiences over point-based rewards, according to hospitality cloud platform provider Mews.
Commissioned by Mews, the random survey polled some 2,000 Americans 18 and older who have traveled in the last 12 months. The above trend was further reinforced by Gen Z respondents, 83 percent of which would remain loyal for superior personalized experiences. In addition, some 71 percent of high-income earners also prefer experiences tailored to them vs. loyalty points.
“The era of transactional loyalty is over,” Richard Valtr, founder of Mews, said in a statement. “Today’s travelers want genuine recognition, the kind that comes from truly understanding who your customer is, why they have come and what they aim to achieve during their trips. More personalized experiences, less loyalty tiers. The hotels that foster continuous and meaningful relationships with their guests, where they understand their preferences and deliver experiences that are memorable and meaningful, are the ones that will see guests return time and time again.”
Survey Says
Furthermore, the survey found that only 24 percent of Americans say hotel rewards are the most valuable when compared to other business segments, such as grocery store rewards, credit card points, gas rewards and airline miles. Additionally, 82 percent of current hotel loyalty members cite frustrations with traditional programs, including points expiring too quickly, 28 percent, blackout dates, 24 percent, and difficulty earning meaningful rewards, 23 percent.
Other survey results related to Gen Z include 89 percent saying that personalized amenities would increase their likelihood to return. Furthermore, the survey revealed that some 83 percent of affluent travelers noted that personalized amenities boost loyalty. In terms of technology, 93 percent of travelers are willing to share personal data to improve hotel experiences, while 70 percent prefer app or kiosk check-in over traditional front desk.
The survey reveals that customer service is the ultimate loyalty builder, according to the survey. While 88 percent of travelers will return if hotels consistently meet expectations, poor service, 62 percent, facility issues, 51 percent, and room problems, 49 percent, remain the fastest ways to lose loyal guests.