5 ways boutique hotels can improve their loyalty programs
There are many reasons to love boutique hotels: personalization, cultural touches, an independent style and design. A recent Jetsetter survey, however, revealed that 1,100 travelers believed boutique hotels weren't performing as well as they should be, mainly in terms of their loyalty programs. Here's why, and what, they can do about it:
1. Boutique hotels lack loyalty programs
Jetsetter's poll found that 50% of travelers are more likely to book a boutique property if it's part of a loyalty program, with another 31% potentially more likely depending on which program the hotel is part of. According to Jetsetter editor Sean Murphy:
"Boutiques are often at a disadvantage when going up against big brand loyalty programs since they often drive consumer choice. And with the big guys getting into the lifestyle category more aggressively, it behooves boutiques to get in the game with either their own point-based loyalty programs."
2. Loyalty program awareness is low
According to Jetsetter, 83% of travelers aren't aware of boutique hotel loyalty programs, which hurts those that have them. Dan Ruch, CEO of Rocketrip, explains that boutique hotels should put as much attention into differentiating their loyalty programs as they do their amenities.
"Loyalty programs don’t just have to be free stays. They could entitle guests to take better advantage of what drew them to the boutique in the first place, for instance, through dinner reservations at that great restaurant."
3. Their loyalty programs aren't spread out
Even when boutique hotels have loyalty programs, they're often limited to just one or a few properties, whereas big brands like Starwood and Hilton can expand their programs around the world, giving travelers more options. Jetsetter's poll found that 75% of travelers prefer when hotels align themselves with airline and large hotel loyalty programs.
According to Ruch:
"Even the largest network of boutique hotels are much smaller than the major hotel groups. Starwood has over 1,000 properties; Marriott and Hilton have over 4,000. Kimpton has 66 hotels in 28 cities; Joie de Vivre has 27 in 19; the Ace has just 7 hotels in as many cities — and these are some of the best known boutique brands."
4. They aren't targeting millennials in a meaningful way
There's no doubt millennials have buying power; however, boutique hotels haven't quite figured out how to target this group yet. Ruch believes boutique hotels need to realize millennials are often price sensitive, which boutiques can address by offering competitive rates.
Murphy also notes offering “Instagrammable experiences” can help with promotions, as can focusing on their distinctiveness and catering to millennials’ love of technology.
“Be on mobile, social and be prepared to provide real-time feedback like a comment on the photo they just posted using your hotel’s location. Allow them to use their technology like check in via mobile, book experiences on their phone and choose when they want to communicate with you. And by all means, give them free WiFi.”
5. They're not looking outside the industry
Beyond the Jetsetter poll, Ruch notes big brand chains have an advantage over boutiques in the way they develop partner programs, allowing guests to turn hotel stays into airline miles, gift cards, magazine subscriptions and more.
“Boutiques hotels can pursue similar or more unique partnerships. For instance, Stumptown Coffee has locations in several Ace Hotels: rewarding loyal guests with a bag of Stumptown beans would be a small, personalized and brand-aligned way to compete with the Starwoods and Marriots of the world, and is much cooler than a magazine subscription."
Jessica Festa is the founder on the solo and offbeat travel blog, Jessie on a Journey, and the online responsible tourism and culture magazine, Epicure & Culture. She's constantly searching for local experiences beyond the guidebook. You can follow her travelers on Facebook, Twitter and Instagram.