June 5th, 2010Hotel Industry And The Global Crisis
Hotel loyalty programmes are another method to entice guests to book their holidays at all types of hotels. Over half of frequent business guests belong to some loyalty programme that offers special benefits to customers. Economically strapped travelers want to be rewarded for their loyalty. Many cheap hotel chains are now offering superior rewards, upgrades and extra amenities just to attract entry level customers.
During 2008 and 2009 the global economy was rocked by soaring food and fuel prices, the collapse of global financial markets, and a severe contraction in world economic demand. Global economic growth declined from 5.2 per cent in 2007 to a forecast -1.1 per cent in 2009. The crisis also caused a significant change in the prospects of developing countries. Economic growth in developing countries in 2009 is projected to be 1.7per cent. This is substantially lower than the observed growth rate of 8.3per cent in 2007.
Other general economic factors also affect the UK hotel industry. Bad weather, the credit crunch and a decline in jobs work against the industry as holiday travel is curtailed or eliminated. Business travelers are switching to budget hotel brands. This trend can be directly correlated to the timing of the economic downturn beginning in 2008. In a positive reaction, the budget hotel brands have worked hard to improve their offerings to compete with the mid-market brands. Guests can get much better deals than previously. Business brand awareness has been converting to membership in new loyalty programmes.
Another thing is that the Internet benefits the hotel industry because booking rooms is easier. It is a way for brands to reach out to business guests. Also the guests have the possibility to use hotel websites for information about best deals and to book rooms online. Once I came across one very interesting site of a Nashville hotel, it was so informative and bright that I’ve decided to book a room there. It’s high time to discuss hotel loyalty programs, that are one more method to entice guests to book their holidays at all types of hotels. Actually over half of frequent business guests belong to some loyalty program that offers special benefits to customers. People who count their money and usually choose the same hotel to spend their vacation want to be rewarded for their loyalty. Today, some inexpensive hotels are offering superior rewards, upgrades and extra amenities just to attract entry level customers. And it’s really good for us, visitors.
If you’re not part of a hotel’s frequent-guest program, you’ll get a brochure pushed in your face when you check in,” said Frank Kwan, a communications director for the Los Angeles County Office of Education in Downey, Calif. “They strongly encourage you to join the program. And if you don’t, you pay for it.” For example, Mr. Kwan says he felt compelled to join Wyndham’s By Request loyalty program because otherwise he would have had to pay for high-speed Internet access and phone calls. Similarly, Hilton H Honors members are allowed a late checkout, but non-cardholders have to pay for an additional day
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