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AAHOA Releases Detailed Report on the Costs and Benefits of Loyalty

by Erika Boyce | Nov 02, 2017

AAHOA has partnered with Kalibri Labs to launch a new special report called: "Book Direct Campaigns: The Costs and Benefits of Loyalty." The study examines stays from May-December 2016 when most hotel chains had Book Direct campaigns in the marketplace. It analyzes two components: a transactional view of performance, cost and potential trade-down, and the longer-term upside or lifetime value of incremental loyalty members and how many recurring guests would need to be added for hotels to compensate for any upfront costs. The analysis demonstrated a net increase in revenue for over 80 percent of the hotels in the sample resulting from the loyalty membership campaign.

The four primary takeaways from the study include:

1. Consumer Behavior Drove Channel Shift in Favor of Brand.com

2. Net ADR of Brand.com Loyalty Rates Were Higher than Net ADR of OTA Rates

3. Results Reflected Net Positive Revenue Outcomes

4. Loyalty is a Powerful Driver of Demand and Growth is Strong

The study also highlights opportunities for hotel brands to continue to optimize the loyalty and affinity programs to ensure they secure a deep list of members and recurring guests, and so that the consumer benefits from a superior stay experience that closely aligns with their preferences. View this webinar with Kalibri Labs to learn more about the report.

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