From Points to Experiences: Redefining Customer Loyalty in the Hotel Industry Through Experiential Rewards

A loyal guest redeems their points for an extra night’s stay at your hotel. Sounds great, right? But wait—your competitor offers the same deal. So, how do you stand out? Enter experiential rewards. These unique, memorable experiences go beyond a mere night’s stay, transforming ordinary visits into extraordinary adventures. Let’s explore how experiential rewards captivate customers and revolutionize the hospitality industry.

What is experiential loyalty and how is it different from transactional loyalty

Experiential loyalty isn’t about mass-produced perks; it’s about weaving unique experiences into your guest’s stay. It’s about tapping into their passions and becoming a trusted confidante, crafting memories that go far beyond a comfortable bed.

The key to creating these memorable experiences lies in personalization. Leverage your guest data to become a destination whisperer. Are they celebrating an anniversary? Surprise them with a couples’ spa treatment with local ingredients. Business traveler with a tight schedule? Offer a curated art tour during their lunch break.

Does the rise of experiential rewards mean the end of point-based rewards?

Will the growing trend of experiential rewards spell the end for points-based systems? Absolutely not. Points-based systems remain effective, with guests actively redeeming points for stays and extra nights. However, to truly stand out, hotels must weave experiential rewards into their loyalty offering.

From world-renowned hotel chains like Marriott and Hilton leveraging the growing trend of Event Tourism to small boutique hotels offering surprise and delight awards, understanding customer motivations is key. Large chains are now allowing point redemptions for concerts and events. Boutique hotels might greet you with a bottle of your favorite wine at check-in.

Realizing that not all customers are motivated by free nights helps create meaningful connections. These personal touches create lasting memories and foster loyalty. This is how you set yourself apart from the competition.

Points and experiential rewards can work hand in hand, creating a powerful combination that enhances customer loyalty. By allowing guests to redeem their points for unique experiences—such as exclusive access to events, curated local tours, and bespoke services—you provide added value and deeper engagement. This hybrid approach not only keeps the traditional rewards relevant but also offers memorable experiences that foster stronger emotional connections with your brand. Ultimately, integrating both systems ensures you cater to diverse guest preferences, leading to higher satisfaction and increased loyalty.

How Experiential Rewards Change the Game for Hotels 

• Higher Revenue per Guest: Loyal guests tend to spend more. They might be willing to book a more expensive room or splurge on spa treatments or dining experiences offered alongside the experiential reward.

• Positive Word-of-mouth Marketing: People love sharing unique experiences. When guests rave about their exclusive wine tasting or private tour, it becomes free marketing for your hotel, attracting new customers.

• Guest Data & Personalization: By understanding guest preferences, hotels can tailor future promotions and experiences, further boosting loyalty and driving targeted marketing efforts. Relevant and impactful experiences that deliver delight allow you to collect more first-party data and create even more personalization and relevance.

• Differentiation in a Competitive Market: Experiential rewards can set your hotel apart from competitors. Standing out as a curator of unique experiences can be a powerful tool for attracting discerning travelers.

Examples of Experiential Rewards in Hotel Loyalty Programs

Marriott Bonvoy Moments:

Marriott Bonvoy members can redeem their points for rewarding experiences tailored to their interests. Imagine a private cooking class with an Italian chef or getting a backstage pass to a Broadway show. The program offers diverse rewards across sports, lifestyle, culinary, and entertainment sectors.

COMO Hotels and Resorts: 

COMO Hotels and Resorts combines holistic wellness with cultural authenticity. Wellness retreats feature personalized programs focusing on rejuvenation and mindfulness, complemented by yoga and meditation sessions led by expert instructors. Guided hikes through scenic routes provide opportunities for guests to connect with nature and explore the destination’s natural beauty. Authentic cooking classes with local chefs offer hands-on experiences that delve into the region’s culinary traditions, using fresh, locally sourced ingredients.

Accor Live Limitless:

Accor Live Limitless allows members to redeem points for various luxurious experiences. From private yacht charters and luxury car rentals to exclusive access to sports events and cultural festivals, Accor provides unique hotel packages that include activities like cooking classes and spa treatments.

Choice Hotels:

Choice Hotels enables members of Choice Privileges to get closer to their favorite College Sports teams through its College Sports Gameday experiences, allowing members to redeem points for unique college sports experiences.

Create Long Lasting Memories For Your Customers With Capillary

With Capillary Technologies’ advanced AI and data analytics platform, transform how you engage with guests, moving beyond traditional perks to offer truly personalized and memorable experiences.

By leveraging real-time data and predictive insights, Capillary enables you to understand your guests’ preferences and craft unique stays that go beyond a simple night’s rest. Book a demo and see it for yourself.

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With a knack for creating engaging content and crafting effective social media campaigns, Anjali wants to make it her mission to leverage the power of content as a strategic marketing tool for businesses. While she is not working, she is either binging movies or writing about them on her blog.