Cornell Report on Hospitality Loyalty Programs Wins Industry Relevance Award
A report demonstrating the value of hotel loyalty programs has won the 2015 Industry Relevance Award from the Center for Hospitality Research (CHR). The report, "Assessing the Benefits of Reward Programs: A Recommended Approach and Case Study from the Lodging Industry," offers a graduated set of methods for hotels to measure the effects of their guest loyalty programs. The researchers, Clay M.
A report demonstrating the value of hotel loyalty programs has won the 2015 Industry Relevance Award from the Center for Hospitality Research (CHR). The report, "Assessing the Benefits of Reward Programs: A Recommended Approach and Case Study from the Lodging Industry," offers a graduated set of methods for hotels to measure the effects of their guest loyalty programs. The researchers, Clay M. Voorhees, Michael McCall, and Bill Carroll, compared the revenues and room-nights for loyalty program members and non-members, based on thousands of guest transactions for two unrelated hotel companies. They found that loyalty program members were bigger spenders at both hotel firms, primarily because members stayed at the hotels more frequently than non-members. The report is available from the CHR at no charge.
McCall is director of the School for Hospitality business at Michigan State University, where Voorhees is an associate professor. Carroll is a clinical professor at the Cornell School of Hotel Administration.
The Industry Relevance Award recognizes faculty who have researched an important topic and created a CHR Report or CHR Tool that has had significant impact on the hospitality industry. The award winners are determined by the CHR's advisory board research committee members and the users of the CHR's website, based on downloads and nominations from industry practitioners. With hundreds of downloads, this report is number five in CHR downloads in the past year.
The researchers conclude by urging industry leaders to examine their loyalty programs for ways to structure those programs to optimize the lift available through such programs. For example, changing reward frequency may further increase customers' spending. By improving the loyalty program, the report concludes, hoteliers may also increase guests' emotional attachment to a brand.
About the Center for Hospitality Research
The purpose of the Center for Hospitality Research is to enable and conduct research of significance to the global hospitality and related service industries. CHR also works to improve the connections between academe and industry, continuing the School of Hotel Administration's long-standing tradition of service to the hospitality industry. Founded in 1992, CHR remains the industry's foremost creator and distributor of timely research, all of which is posted at no charge for all to use. In addition to its industry advisory board, CHR convenes several industry roundtables each year for the purpose of identifying new issues affecting the hospitality industry.
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