THE POTENTIAL WITH POINTS. An insights report by U.S. News & World Report s Marketing and Business Intelligence Teams and Best Western.

Transcription

1 THE POTENTIAL WITH POINTS An insights report by U.S. News & World Report s Marketing and Business Intelligence Teams and Best Western.

2 CONTENTS 3. Purpose 4. The Travelers 7. Points for a Purpose 9. Perks Are Good, Free is King 12. Family Matters 14. Trust Above All 16. Conclusion 19. How it All Went Down U.S. NEWS THE POTENTIAL WITH POINTS 2

3 PURPOSE U.S. News & World Report s Marketing and Business Intelligence teams conducted a co-branded survey with Best Western Hotels, for an insider s scoop on traveler preferences, behaviors and usage when it came to hotel loyalty programs. The goal was to gain insight into how consumers view such programs, but also to identify key areas where such programs could enrich the member experience. What we discovered is that loyalty programs are predominantly used for leisure travel, and the ability to earn points to redeem for free nights is the key reason travelers choose to be loyalty program members. Also important: The role family plays in shaping travel plans and determining where to visit. U.S. NEWS THE POTENTIAL WITH POINTS 3

4 THE TRAVELERS Here s a snapshot of the more than 1,400 survey respondents who participated. U.S. NEWS THE POTENTIAL WITH POINTS 4

5 THE TRAVELERS They re a mix of ages, traveler-types and even nationalities. 77% Of respondents were from the U.S. 23% Of respondents were from Canada. 62% of respondents are employed full-time 69% have children 68% are married or in a domestic partnership THEY RE LOYALTY PROGRAM REWARDS USERS: All 1,000 of the general population participants belonged to a rewards program. And to supplement the responses, an additional 440 active Best Western Rewards Program members were added in. U.S. NEWS THE POTENTIAL WITH POINTS 5

6 THE TRAVELERS They travel often. 28% travel equally for both business and leisure. All survey respondents had traveled within the last calendar year, with 32% More than half earn points during leisure travel, then redeem those points for additional leisure trips. having two to three hotel stays. 32% only do downtime getaways. 41% The polled Best Western Rewards members had more hotel stays: 41 percent of those respondents had more than 10 hotel stays in the last year. In comparison, only 18 percent of the main sample had as many hotel stays. U.S. NEWS THE POTENTIAL WITH POINTS 6

7 POINTS FOR A PURPOSE U.S. NEWS THE POTENTIAL WITH POINTS 7

8 POINTS FOR A PURPOSE Survey participants use loyalty program points as the currency they are: We found 53% of respondents are closely managing their points 86% are using those earned points to book hotel stays. Expiring points is the biggest pain point of being a loyalty program member, followed by disdain for blackout dates and the difficulty in moving up a tier. ABOUT BEST WESTERN: Respondents find it easier to redeem Best Western Rewards points than any other polled programs. 54% 80% 82% Respondents who are members of numerous loyalty programs also recognized Best Western as better than other polled programs. Best Western Rewards is also highly regarded with those under age 40. of Best Western members closely manage/track their points of Best Western Rewards members use their hotel loyalty program points to book at least some of the time. of Best Western members determine how to use their points by themselves. U.S. NEWS THE POTENTIAL WITH POINTS 8

9 PERKS ARE GOOD, FREE IS KING U.S. NEWS THE POTENTIAL WITH POINTS 9

10 PERKS ARE GOOD, FREE IS KING Even with loyalty program features like gift cards or dining and entertainment options, nothing compares to free nights. 39% of respondents said the primary reason they re active in a hotel loyalty program is to earn free nights 63% listed guaranteed rooms for free night redemption to be the most appealing feature a loyalty program can have. Free was also top of mind when participants were asked what they would recommend hotels do to boost the value of their loyalty program: I would randomly give away free hotel nights as a bonus, to lure more customers to my hotels. Extra points if the customer kept the room clean during their stay. Easier redemption for guests and better incentive to stay with brand. 74% Of the respondents find it easy to redeem Best Western Rewards loyalty points for free nights. U.S. NEWS THE POTENTIAL WITH POINTS 10

11 PERKS ARE GOOD, FREE IS KING Close to half the respondents are hoarding points with the hopes of taking a dream getaway. 7% use the points for other forms of entertainment, such as merchandise, movies, dining, etc. 9% forget about the points until they re about to expire. 34% of survey respondents are cashing in on a free night s stay as soon as they have enough points to do so. One destination peppers the survey s open-ended responses more than all others Hawaii 47% Of Best Western members are saving their points so they can redeem them for a big trip. 35% are redeeming points until they have enough to cash in on a free night s stay. U.S. NEWS THE POTENTIAL WITH POINTS 11

12 FAMILY MATTERS U.S. NEWS THE POTENTIAL WITH POINTS 12

13 FAMILY MATTERS The brunt of participants are a part of family unit -- as significant others or parents, specifically -- and those family members change the tide for how loyalty program members plan to use their points. Respondents revealed they re dreaming of using their points for: I am dreaming about using them to take my children to Disneyland. I like to use my loyalty points for random getaway nights with the wife. When we have enough, we just take a day off and go spend the night in a hotel to get away from everything. Using my points for a stay so my husband can travel, since he has cancer and it is hard for him to stay in some places. My godchildren are graduating next year and I want to spend a week with them before they go off to college. U.S. NEWS THE POTENTIAL WITH POINTS 13

14 TRUST ABOVE ALL U.S. NEWS THE POTENTIAL WITH POINTS 14

15 TRUST ABOVE ALL Participating in a rewards program does heavily influence the hotel choices its members make. 95% 42% most of the time 29% all of the time 24% some of the time of respondents hotel choice are influenced by a hotel loyalty program at least some of the time. When booking a room with a loyalty program, 44% of respondents cared most about staying at a hotel brand they can trust and that offers great service. 94% of Best Western Rewards members who participated said their hotel choice is influenced by a hotel loyalty program at least some of the time. 46% of Best Western members care most about staying at a hotel brand they can trust. 13% are concerned with the points they re going to be able to earn with that hotel stay. 17% say it s the amount of points needed to earn a free night. 19% of respondents said having abundant locations from which to stay in is the loyalty program feature that matters the most. U.S. NEWS THE POTENTIAL WITH POINTS 15

16 CONCLUSION U.S. NEWS THE POTENTIAL WITH POINTS 16

17 CONCLUSION Although there was a mixed of polled respondents who earn and use points for business and leisure, most members are using loyalty programs for leisure travel. Half the survey-takers primarily participate in programs for leisure. Eighty-three percent redeem their points for leisure trips, regardless of how points were initially earned. Best Western Rewards are recognized as one of the most intuitive loyalty programs. According to the survey, respondents find it easier to redeem Best Western Rewards points than any other polled programs. Respondents who are members of numerous loyalty programs also recognized Best Western Rewards as better than other polled programs. Although loyalty programs boast many fringe perks, and Best Western Rewards refresh includes perks like instant rewards and enhanced elite recognition, members are still mostly concerned with free nights. 34% Close to half are hoarding points to save for a dream trip. Expiring points is the biggest pain point for survey respondents. are redeeming points for free stays as soon as they re earned. U.S. NEWS THE POTENTIAL WITH POINTS 17

18 CONCLUSION Family plays a role in how destinations for vacation are chosen and planned. Respondents who are parents note their children have at least some influence over how points are used. Best Western Rewards members are less likely to factor their children into how points are used, and more likely to make the decision with their significant other. Families ties play a significant role in how members hope to use their earned points, as witnessed by the open-ended responses. Loyalty program membership does influence a traveler s hotel choice. 96% are influenced at least some of the time. 55% note that trust and confidence in receiving great service plays a significant role in hotel choice. U.S. NEWS THE POTENTIAL WITH POINTS 18

19 HOW IT ALL WENT DOWN U.S. NEWS THE POTENTIAL WITH POINTS 19

20 HOW IT ALL WENT DOWN This is a report prepared by Best Western and the U.S. News & World Report marketing and business intelligence teams regarding hotel travel rewards programs. The U.S. News editorial staff was not involved in the creation of the survey or preparation of the report, and the report does not necessarily reflect the views of the U.S. News editorial staff. U.S. News and Best Western used a third-party survey administrator to poll more than 1400 travelers online between late April and early May Onethousand participants were from a general population, all of which had stayed at least two times in a hotel in the past 12 months. To supplement the responses, there was then an over-sample of 440 respondents who are active Best Western Rewards members and who were solicited via to participate. U.S. NEWS THE POTENTIAL WITH POINTS 20