Hotels Turn To Loyalty Programs To Drive Revenue

At the same time, the privately held company is offering new perks to its current and new members, such as free Internet access, some suite upgrades and exclusive check-in areas for its elite members. Customer loyalty offers the company a short-term bonus as well as long-term benefits, said Hyatt President and Chief Executive Mark Hoplamazian.

"We believe there is no question that it will stimulate current activity and current revenue," Hoplamazian said.

Marriott announced last week that members can get a three-night stay by redeeming points for just two nights at 57 of its resorts around the world. Members can also book a six-night stay by using points for only four nights.

Other new deals include one from InterContinental Hotels Group PLC for its loyalty program members. Members staying twice at some of its hotels through April 30 can get another night free any time through June 16.

Don Berg, vice president of the company's loyalty programs, said the company noted that the travel patterns of loyalty club members recovered faster from the economic slump that followed the terrorist attacks of Sept. 11.

"The people who belong to these programs are largely frequent business travelers who travel for a living," he said.