[SPONSORED CONTENT] Billy Hughes, area general manager UK and Ireland at The Ascott Limited, explores the importance of loyalty programmes in driving repeat business and increased revenues.
With many feeling the pinch of inflation, it’s becoming increasingly relevant for the tourism industry to offer loyalty programmes for their guests that help to create an elevated travel experience. Today, it is more difficult to retain leisure clients, who tend to try a place once and then move on to discover new accommodation. Corporate clients are more likely to stick to what they know, and it is the loyalty programmes that help to encourage repeat business. The accommodation industry is one area redefining value-added offers, and at The Ascott Limited we are especially keeping up with this trend, offering more to our Ascott Star Rewards (ASR) members as the loyalty programme market continues to grow exponentially.
Loyalty programmes are a cornerstone of customer retention strategies and are crucial for both our hospitality brands and guests, especially within the serviced apartment industry, whereby guests seek a home away from home experience. For guests it means offering a hyper-personalised experience, from small gestures to autonomous actions, where new travellers will appreciate a connected and tailor-made experience.
With the Ascott Star Rewards programme, which has been running for five years, guests across our brand portfolio have access to exclusive offers as a reward for their loyalty including year-long savings, early access to private sales, birthday treats and mobile check-in. As members progress to a higher membership level, they can unlock even bolder benefits to maximise their stays such as VIP welcome gifts, and an ‘à la carte’ service offering late check outs and complimentary use of facilities.
Whilst ASR has attractive offers to encourage new members to sign up, the main priority as a business is to create and maintain meaningful, long-term relationships with repeat guests. Once signed up to a programme through a website or via an app, data also provides valuable insight into customers’ behaviour, which can be used to tailor services and offerings, ensuring our serviced apartments are staying ahead of the curve, streamlining the entire customer journey, and giving guests more for their money.
In 2023, The Ascott Limited received the highest ever room revenue from our ASR members at over $342 million globally, surpassing that of FY 2022 by almost 63 per cent. This was from the 350 participating properties across 14 brands, where repeat stay revenue from ASR members constituted more than 60 per cent.
Loyalty programmes offer immense value to customers, as they translate our appreciation to our members. By rewarding repeat bookings and encouraging customer engagement, we are able to build strong, lasting relationships with our guests. As a business, it costs much less to retain customers than to build initiatives that attract new ones. Guests who are already familiar with a serviced apartment brand tend to spend more on additional services. The average spend per transaction of ASR members was over 50 per cent higher than non-members last year, highlighting the financial benefits of loyalty programmes. It’s not just about points and perks, it’s about creating memorable experiences and lasting relationships, ensuring they come back time and time again, across a brand portfolio.
The impact of loyalty programmes on the accommodation market is substantial. They not only encourage repeat business, but also drive leisure guest bookings as evidenced by The Ascott, where over 90 per cent of direct web and mobile app bookings were made by ASR members. This has resulted in a surge in booking revenue by over 40 per cent compared to the previous year.
To celebrate the fifth year of our loyalty programme, we are rolling out a refreshed brand promise called Stay Rewarded – a year-long series of elevated member experiences that includes the all-new Ascott Privilege Signatures, enhanced membership privileges, and greater stay value. Offers range from invitations to exclusive global events, preferential room rates, complimentary upgrades, access to exclusive amenities, and bonus loyalty points that can be redeemed for free stays, experiences, or other rewards.
Driven by Ascott’s commitment to innovation and excellence, the refreshed ASR programme is built on three pillars: boldness, innovation, and a penchant for experimentation. The brand refresh has been revitalised to be bold and vibrant to personify the young nature of the programme. The new look also reflects its unlimited potential, as it continues advancing on its journey to become a leading loyalty programme in the hospitality industry.
As we look to the future, it is imperative for the accommodation industry to consider implementing loyalty programmes to stay competitive and ensure customer loyalty. Let’s embrace this opportunity for both the industry and our guests to ‘Stay Rewarded’ and make every guest’s experience unforgettable.
