Do loyalty programs really matter for hotel operational and financial performance? [Summary]

Abstract

The result of this study gives hoteliers the lesson that loyalty programs have a positive impact on four hotel performance indicators of RevPAR, ADR, Occupancy, and Gross operating profit. It is suggested for hoteliers to put more importance on the operation of loyalty programs when they allocate the marketing budget with the strong jurisdiction from the study. Moreover, it is implied that an effort to make guests engage with the loyalty program would lead to the enhancement of the benefits of the program according to the research data.