Resort ReboundMay 20, 2021

The Critical Role Incentives and Loyalty Programs Will Play in the Recovery By
May 20, 2021

Resort Rebound

The Critical Role Incentives and Loyalty Programs Will Play in the Recovery

Alan TraigerAlan Traiger is vice president of sales for Rymax’s Solution Sales Division. He is a well-established, highly successful industry sales executive who contributed significantly to the early success of Rymax. As the leader of the company’s Solution Sales Department, Traiger is responsible for delivering effective customer loyalty, employee recognition and sales incentive programs to Fortune 1000 companies.

Now that vaccine availability and distribution is ramping up, we can all hopefully see the light at the end of the COVID-19 tunnel. Many people have set their sights on traveling again and have already thought about planning their first trip in a post-pandemic world. Some believe that the return to travel will be very gradual, while others believe there will be an explosion in bookings once consumer confidence returns and travel restrictions are lifted. Only time will tell.

Either way, hoteliers seeking to differentiate themselves and draw travelers back to their properties will face some challenges, especially hotels hoping to book large groups for conferences and professional events. What will be the draw to get people to stay at one property over another when all the hotels are vying for the same bookings? Further, hotels seeking to recoup money lost during a year-long lockdown will need help in motivating employees to upsell services, lock in extra room nights and book ancillary services for guests.

Now, more than ever before, customer loyalty programs and sales incentives programs will be essential to the success of hotel properties. Let us examine solutions to each of these challenges:

Differentiation 

With new safety protocols in existence, aggressive travel promotions yet to really launch and a shift in what now defines a good customer experience, the guest loyalty that hotel properties maintained prior to the pandemic may now be up for grabs. However, that is not necessarily a bad thing. If loyalty is up for grabs among all properties and all customers, then all properties are on an equal playing field.

If we assume that all customers, both old and new, must be “reclaimed” then all hoteliers are going to need to get creative, bold and generous in differentiating themselves, and in their approach to growing loyalty.

Frequency and personalization of rewards have always been paramount. But now, more than ever, they’ll play a critical role in the customer experience, driving people back to recreational businesses and in generating loyalty. Customer rewards can’t just follow a transaction. Non-transactional rewards that are specific to each customer, such as birthday rewards or VIP thank you gifts will be essential in making customers feel valued.

Loyalty programs that enable customers to earn points to redeem for their choice of product reward are highly appealing. Giving program participants the ability to choose from a variety of trending rewards across multiple categories has always been an essential piece of building a successful program. However, now, in a time when people have had to adjust lifestyles, spending habits, social interactions, work environments and daily routines, it’s critical that reward options be plentiful and relevant. Rewards that matter most to people are the items that truly motivate. The choice to select the rewards that truly resonate will leave participants feeling appreciated — and most of all, inspired.

To really make an impact, resort leaders will need to think outside of the box and elevate their customer loyalty programs to reward customers in creative and meaningful ways. Implementing a dynamic incentive program that includes a multitude of initiatives, such as virtual and experiential shopping events, sweepstakes, product giveaways, and points programs are all highly effective in earning customers’ trust and loyalty.

Hilton Lake Buena Vista

Hilton Lake Buena Vista

Recouping Lost Dollars

Properties lost an astounding amount of money during the pandemic. Overcoming such significant deficits will take more than just room reservations. Incentivizing sales teams and hotel staff to upsell ancillary services will be critical to bolstering a resort’s bottom line, helping to make up for losses, and driving repeat visits. It will go a long way in boosting employee morale and engagement too.

With a downturn in the travel industry, many travel and hospitality professionals have been confronted with layoffs, pay cuts and reduced hours, forcing them to tighten their belts. To survive the turbulent times of the pandemic, many are curbing, or even eliminating discretionary spending and instead are buying only the necessities. Receiving gifts or rewards from employers will be appreciated more than ever, making employees feel cared for, valued and respected. This will both boost performance level and drive loyalty.

If employees know they are going to be generously and frequently rewarded for their contributions in driving the business’ prosperity, they will be motivated to sell their property’s products and services, such as spa treatments and tickets to live shows or performances. They will be more inclined to encourage guests to stay an extra night, or arrange recreational activities and off-site excursions.

A robust sales incentive program can be especially inspiring for those tasked with securing group bookings for professional meetings and events, business conferences and personal celebrations, which is a sector that was most crippled by the pandemic. A comprehensive employee recognition and/or sales incentive program that celebrates all hotel staffers with a diverse mix of trending reward options, from popular brands like Apple, KitchenAid, Michael Kors and UGG will elevate the employee experience, as well as the customer experience, thus boosting loyalty all around.

Final Thoughts

One year into a global pandemic, recreational businesses are re-examining customer loyalty and the customer experience. Like everything else, customer loyalty will undergo a shift in a post-COVID world. Following 12 months of lockdowns, the concept of a “good customer experience” will look different as we resume life in the new normal. Subsequently, what will be required to keep customers loyal will also change.

Similarly, as the pandemic looms, the professional world has started to experience a feeling of burnout or general lack of engagement. Many people have been forced to work extended hours or take on dual roles due to company cutbacks, and may be feeling overworked and underappreciated. As we begin our recovery and life in the new normal, incentives will play a critical role in rebuilding motivation, trust, productivity, team morale and camaraderie.

So, whether hoteliers are facing the challenge of engaging employees or rebuilding loyalty among customers, rewards will be essential to the global travel and resort rebound. | AC&F |

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