Over the past year, millions of homebound travelers made it through the frustrating months of isolation by dreaming about the trips they will soon take. They’ve also had much time to think about how that travel can be more rewarding. As we in the travel and hospitality industry begin to emerge from the darkness of the pandemic, it’s important to shed some light on what travelers expect from rewards and loyalty programs.
In a January ThePointsGuy.com article, travel writer Benji Stawski shared his “wish list” of changes he’s hoping to see made to travel loyalty programs. His list is indicative of growing customer dissatisfaction with many traditional points- or mileage-based rewards programs. While many of Benji’s wishes apply to frequent flier programs and large hotel chain loyalty programs, we did note one wish that applies to independent hotels offering free stays as part of their rewards program.
“Hilton and Hyatt are the only major chains to consistently waive resort fees on award stays. Marriott and IHG, on the other hand, do not. If you’re redeeming points for a free night, you want your night to be free. These mandatory charges typically range from $20 to $50 a night, so they can really add up. Even worse, they are often hidden from travelers until they reach the checkout page. These fees often include benefits that elites would get anyway, such as premium internet and bottled water. Obviously, I’d like to see resort fees eliminated entirely, but waiving them on award stays would be a good start.”
Beyond the frustration with the increased service fees, there’s increasing skepticism about the real value delivered by many of the larger rewards programs. Customers are frustrated by the inability to use their earned airline miles or points to book preferred routes and schedules. Several airlines and hotel chains have quietly but steadily increased the number of miles required to redeem rewards, and with trillions (trillions!) of unclaimed miles currently sitting in frequent traveler/spender accounts, more of these increases are inevitable. The fact is that points and miles are more expensive to earn, less valuable than ever, and increasingly more difficult to redeem.
As consumer advocate Christopher Elliott wrote in a recent article, “Airlines and hotels are constantly changing their programs by making award seats and stays more difficult to get, which is to say they’re either reducing their available award inventory, or they’re requiring more points or miles to get a “free” room or ticket. In other words, the value of a mile is in constant decline. If you don’t spend the points you earn right now, you will get less for them in a year or two. If you wait any longer, you may not have any miles at all. They might expire. Even more confusing: With some companies the expiration varies, based on your travel date, so some of your awards will expire while others won’t. It’s like sand slipping through your fingers.”
This growing customer dissatisfaction is bad news for the big guys. Fortunately, the independent partner properties and 1.5 million+ members of The Guestbook are way ahead of the game. They already know the unrivaled value of cash-back rewards. The Guestbook’s cash-back rewards are based entirely on the amount spent on direct-book stays. There are no points schemes and bonus miles, which ultimately devalue the “currency” of those points and miles. Cash is cash.
That’s an incentive you can rely on, and a reward your guests can bank on.
