Hotels Turn To Loyalty Programs To Drive Revenue

KRISTEN A. LEE

NEW YORK (AP) — As global travel continues to slump, with business travelers and vacationers sticking close to home, hotel chains are ardently courting their most loyal customers.

Free rooms and other perks for their most frequent guests have become a key investment for hotel companies with empty rooms to fill, said Tom Botts, a specialist in the hotel and travel industry at consulting firm Hudson Crossing. Companies count on guests staying for free to drive some revenue by eating in the hotel restaurants, visiting the spa and opening their wallets to pay for additional nights.

"Hotels are looking at this as a way to get people in the door," Botts said.

Most recently, Global Hyatt Corp. and Marriott International Inc. have offered free nights at their properties through loyalty programs, which reward members with points they can redeem for hotel stays and merchandise.

On Thursday, Hyatt announced it was giving away nearly 32,000 free nights at its hotels to current members or new enrollees in its guest loyalty program who submit winning essays detailing how they plan to use the free stay. The promotion includes three prizes of 365 free nights at Hyatt properties.