Broken Promises? The Myth of Personalization in Hotel Loyalty
08 August 2024
At hotel industry conferences, major chains frequently highlight their loyalty programs and how they personalize their members' experiences. However, the question remains: are these claims merely nice words, or are these companies striving to deliver personalized experiences? My personal experiences with Marriott Bonvoy, IHG One Rewards, and Accor Live Limitless suggest there is still a long way to go.
Despite the promises of personalization, these mega-chain websites and email marketing often feel generic, bordering on uninteresting, and even annoying. It seems as though the primary goal is simply to sell more rooms. The strategy resembles a scattergun approach, akin to scams, where the intent is to convert even a small percentage of a large target audience.
In this blog post, I will explore whether Marriott Bonvoy, IHG Rewards, and Accor Live Limitless, where I am a loyal member and a fan, genuinely provide personalized offerings and communication, sharing my personal experiences and insights.
Importance of Personalization in Modern Hospitality
In today's digital age, personalization has the potential to become a pivotal aspect of guest satisfaction in hotel loyalty programs. It involves tailoring the guest experience based on individual preferences, behaviors, and past interactions. By leveraging data and technology, hotels can craft unique experiences that resonate with each guest, enhancing their overall satisfaction and loyalty.
The major hotel chains, including Marriott, IHG, and Accor, claim that their loyalty programs enable them to personalize offerings and communication. Personalization allows these hotels to move beyond generic offers, providing guests customized recommendations, targeted promotions, and tailored communication. This approach makes guests feel valued and understood and strengthens their emotional connection with the brand, leading to increased loyalty and advocacy.
Why Personalization Matters
Personalization has emerged as a critical factor in enhancing guest satisfaction and fostering loyalty in the hospitality industry. As travelers increasingly seek unique and memorable experiences, hotels' ability to tailor their offerings to individual preferences has become a key differentiator.
Impact of Personalization on Guest Satisfaction and Loyalty
Personalization significantly enhances guest satisfaction by making guests feel recognized and valued. When a hotel acknowledges a guest's preferences—such as their favorite room type, preferred amenities, or dining habits—it creates a sense of familiarity and comfort. This level of attention to detail transforms an ordinary stay into a personalized experience, increasing guest satisfaction.
Moreover, personalized experiences drive guest loyalty. When guests feel that a hotel understands and anticipates their needs, they are more likely to return for future stays. This emotional connection builds trust and loyalty, encouraging guests to choose the same hotel brand over competitors.
Role of Data in Crafting Personalized Experiences
Data is at the heart of personalization in hotel loyalty programs. Hotels collect vast amounts of data from various touchpoints, including booking histories, guest feedback, social media interactions, and in-stay preferences. By analyzing this data, hotels can gain insights into guest behaviors and preferences, enabling them to tailor their offerings accordingly.
Advanced data analytics and machine learning technologies allow hotels to identify patterns and trends to predict guest needs and proactively deliver personalized experiences. This data-driven approach ensures that personalization is effective and scalable across large hotel chains.
I have provided data for Marriott, IHG, and Accor. Hence, they know where I live, my email and phone number, stay preferences, special interests, dietary restrictions (none), and non-smoking rooms. They also have information about my reservations for many years since I joined their programs. Often, they ask for arrival information, so they also know which airlines I used to travel to the destination. They know how I booked the room, the booking window, the rate, etc. Reservations have valuable information a hotel can use to understand more about their guests.
Overview of Hotel Loyalty Programs
At their core, hotel loyalty programs are marketing strategies that incentivize guests to stay repeatedly with a specific hotel brand. These programs offer rewards through points or status levels that guests can redeem for various perks, from complimentary stays to special amenities. The purpose of these programs is twofold: to retain existing customers by rewarding their loyalty and to attract new guests by showcasing the value of membership.
Types of Personalization in Loyalty Programs
Personalization in hotel loyalty programs can take many forms, each designed to enhance the guest experience and foster loyalty.
Customized Offers and Promotions
One of the most common forms of personalization is the delivery of customized offers and promotions. Instead of sending generic deals to all members, hotels use data insights to tailor promotions to individual guests. For example, guests who frequently stay in luxury suites might receive exclusive offers for suite upgrades or access to premium amenities. This targeted approach ensures that guests receive relevant offers, increasing the likelihood of engagement and conversion.
Tailored Experiences and Services
Beyond offers and promotions, personalization extends to the overall guest experience. Hotels can create tailored experiences by anticipating guest needs and preferences. For instance, a hotel might note a guest's preference for a particular type of pillow or their dietary restrictions, ensuring that these preferences are accommodated during their stay. Additionally, loyalty programs can offer personalized services such as curated itineraries, bespoke dining experiences, or personalized welcome amenities, enhancing the guest's overall experience.
By focusing on personalized experiences and services, hotel loyalty programs can create memorable stays that resonate with guests, fostering long-term loyalty and advocacy.
The above examples are basic marketing examples. Based on my personal experiences, Marriott, IHG, and Accor are not even close to reaching the basic level of personalization. More about this later.
The new buzzword is AI, a hot topic at hotel conferences. However, these three mega-chains show no signs of harnessing AI's potential in their loyalty programs to deliver truly personalized offerings. The gap between the rhetoric at industry events and the actual execution of loyalty programs is apparent, highlighting the need for further innovation and a more authentic commitment to personalization.
Personal experience of three mega-chain loyalty programs
My travel profile
In 2024, I have spent 50 nights in hotels: 12 with Marriott, 2 with IHG, 1 with Accor, and the rest with various hotel chains and independents. I prefer Oneworld for flights, but I also use many other airlines. My favorite car rental company is Hertz, but I rent cars from others. I pay for travel with my Amex Platinum. I am probably a typical traveler, except I have worked in the hotel industry for 35 years in different roles, including CEO for small hotel companies.
Marriott captured 24 % of my room nights, IHG 4 %, and Accor 1 %. The percentages are a bit unfair to Accor since they typically capture 20 % of the room nights. I would have spent more nights with these three mega-chains if they had captured my room nights better.
These three mega-chains claim and extensively market the personalization aspect of joining their loyalty programs. They all promise customized offers, deals, and an enhanced stay experience based on preferences. Let's see how well they deliver their customization promise to capture my room nights.
My Personal Experience with Marriott Bonvoy
As a Silver Elite member with 12 nights this year and 140,601 points accumulated, Marriott knows a lot about me: my preference for a king bed, non-smoking rooms, high floors, extra towels, and a refrigerator in the room. They also have details about my past stays and personal information like my location, email, and phone number. Despite this wealth of information, my experiences with Marriott's personalization efforts have been mixed.
Marriott Bonvoy Website Experience
When I log into the Marriott Bonvoy website, I expect a personalized experience, given how easily a hotel can customize the website for individual users. However, the reality often falls short. For instance, I received an offer for 50% off a second room—a promotion irrelevant to me, as Marriott knows I have never stayed with my family at one of their hotels.
Similarly, the "Save on Summer" deals are generic, with a long list of hotels in North America and offers for stays of 5+ nights. The search results span 105 pages, beginning with 40 AC Hotels. Although filters are available, this approach lacks true personalization.
Another section features "Summer Savings & Packages," with listings starting with AC Hotels and continuing for 106 pages. Following this, I can explore new hotels and destinations worldwide through "Where to Next?" Marriott has not personalized these offerings to my preferences or travel habits.
Marriott Bonvoy Email Marketing
The email marketing from Marriott Bonvoy is similarly impersonal. The latest email focused on eSports, which does not align with my interests. If personalization is present in these communications, it is not immediately apparent and fails to inspire me to book a stay at a Marriott property.
Despite the program's potential for personalization, my experiences suggest that Marriott Bonvoy can improve in delivering tailored experiences and communications that genuinely resonate with members.
Personal preferences
I can add personal preferences, such as interests and what I like for my stay. I miss the fact that I cannot add which brands I want so that I can get specific offers for those brands.
My Personal Experience with IHG One Rewards
As a club member with two nights this year and 37,777 accumulated points, IHG One Rewards has access to various personal details, including my location, email, and phone number. They also know my interests in arts and culture, travel, food and wine, and my past stays since joining the program many years ago.
IHG Website Experience
My experience with the IHG website has been somewhat mixed. Upon logging in, I am greeted with a pop-up that I cannot dismiss without registering for an offer. Only then can I access the menu options to explore other offers. One prominent promotion, "Summertime Dreaming," seems available across many hotels but lacks any customization to my preferences. Additionally, despite being logged in, I am occasionally prompted to become a member, which is redundant.
IHG Email Marketing
In contrast, the email marketing from IHG One Rewards shows some signs of personalization. I receive emails frequently, and many highlight my favorite IHG brands and focus on food and wine, aligning with my interests. This approach makes the communication feel more relevant and engaging.
While IHG demonstrates some personalization efforts, especially in email marketing, there remains room for improvement in tailoring website experiences and offers. Given the resources and data available to a large mega-chain like IHG, there is potential for more sophisticated personalization that could truly inspire and engage members.
Personal preferences
I can add personal preferences, such as interests and what I like for my stay. I miss the fact that I cannot add which brands I want so that I can get specific offers for those brands.
My Personal Experience with Accor Live Limitless
As a Silver member with one night this year and 4,639 reward points, Accor Live Limitless holds detailed information about my preferences and personal details, including my location, email, birth date, and phone number. They also know that I prefer non-smoking rooms on the upper floors and have a record of where I've stayed since joining the program.
Accor Hotels Website Experience
When I log into the Accor website, they greet me by name, a simple yet effective personalization form. Upon logging in, I receive a pop-up promising a more personalized experience if I answer three questions, but the immediate impact is not noticeable. The three primary offers I see are 15% off rates in France, an ALL gift card, and triple reward points in Africa, Asia, the Middle East, and the Pacific. When I attempted to activate one of these deals, I initially encountered a technical issue, although it worked when I tried again later.
Accor Email Marketing
Accor's email marketing shows some level of personalization. I receive frequent emails, and they often seem aligned with my interests, such as food, wine, and my favorite Accor brands. This suggests that Accor leverages my data, making the communication more relevant.
Despite these efforts, Accor still has room to grow in personalization. While they inspire me more than other programs, their personalization could be more sophisticated, considering their size and resources. When booking rooms at Accor, they excel in displaying prices, as they show the total cost upfront, including all fees and taxes for the entire stay. This transparency is a significant advantage over Marriott and IHG, which only display the total price at the payment stage.
Accor Live Limitless demonstrates a commitment to personalization and lifestyle integration, providing a more engaging experience for members. However, like many large chains, there is still potential for more profound and meaningful personalization to enhance guest satisfaction and loyalty.
Personal preferences
I can add personal preferences, such as interests and what I like for my stay. I can add which brands I want so I can get specific offers for those brands. However, I cannot add brands like Hoxton, Mama Shelter, and 25Hours.
The Future of Personalization in Loyalty Programs
As hotel loyalty programs evolve, personalization remains crucial for enhancing guest experiences and fostering brand loyalty. Looking ahead, several emerging trends and opportunities for innovation are poised to shape the future of personalization in the hospitality industry.
Use of Artificial Intelligence and Machine Learning in Personalization
Artificial intelligence (AI) and machine learning (ML) are revolutionizing how hotels can personalize their loyalty programs. These technologies enable hotels to analyze vast amounts of data quickly and accurately, uncovering patterns and insights that were previously difficult to detect.
- Predictive Personalization: AI can predict future guest behavior and preferences by analyzing past interactions, booking patterns, and feedback. This allows hotels to offer highly relevant recommendations and tailor experiences before guests make reservations.
- Real-Time Personalization: ML algorithms can provide real-time personalization, adjusting offers and services based on a guest's current location, behavior, or preferences during their stay. For example, hotels can use AI to suggest nearby attractions, dining options, or events that align with guests' interests.
- Chatbots and Virtual Assistants: AI-powered chatbots and virtual assistants are becoming more common in hotels. These tools provide personalized assistance and recommendations 24/7 and enhance the guest experience by offering immediate support and tailored suggestions.
Conclusion and Takeaways
Summary of Key Insights
Throughout this exploration of hotel loyalty programs, it's clear that personalization is a critical component in enhancing guest loyalty and satisfaction. By tailoring experiences and offers to individual preferences, hotels can create memorable stays that resonate with guests, fostering a deeper emotional connection with the brand. Personalization goes beyond transactional benefits, offering guests unique experiences that enhance their travel journey.
Each of the three loyalty programs we examined—Marriott Bonvoy, IHG One Rewards, and Accor Live Limitless—demonstrates varying personalization. While they have made strides in leveraging data and technology to deliver customized experiences, there remains significant potential for further innovation and refinement in their personalization strategies.
Final Thoughts
From my personal experiences as a member of these loyalty programs, it is evident that personalization efforts are still in their early stages. While there are glimpses of tailored offerings and communications, such as personalized emails and some recognition of preferences, the overall experience often feels generic rather than genuinely individualized.
The potential for personalization is vast, with technologies like AI and machine learning offering exciting possibilities for hyper-personalized experiences. However, the current execution by these significant hotel chains suggests there is room for improvement in how they utilize data to meet and exceed guest expectations.
Loyalty programs can transform travel experiences, turning routine stays into enriching journeys. While the three programs have laid a solid foundation, much work remains to fully realize the promise of personalization. I am curious and looking forward to how they will apply AI to their loyalty program.
Encouragement for Readers
As a traveler, engaging with hotel loyalty programs can offer valuable rewards and enhanced experiences. I encourage readers to explore these programs and take advantage of their benefits. Your participation and feedback can drive improvements, helping shape the future of personalization in hospitality.
Sharing your experiences with these programs can also provide valuable insights into what works and where there is room for growth. You can help guide these programs toward delivering more personalized and meaningful experiences by voicing your preferences and expectations.
In conclusion, while the journey toward full personalization in hotel loyalty programs is ongoing, the potential for creating exceptional travel experiences is immense. By embracing these programs and advocating for greater personalization, travelers can enjoy more rewarding and fulfilling journeys.