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“Hotel loyalty programmes do help drive compliance so long as the traveller doesn’t go ‘off piste’ and have a loyalty card with a non-preferred chain” But others believe the corporate ap-


proach generally appears to be rather more hands-off. “From our experience, we do not see corporations enforcing control over the hotel reward points,” says Paul East, chief operating officer (UK/Europe and Americas) for Wings Travel Management. While the more-established airline


loyalty schemes often are part of formal travel policies, hotel schemes can be regarded as less important, possibly because the spend involved can be con- siderably lower. “Reward points specific to hotels are


not mentioned within our travel policy as such, although airline rewards are,” says Peter Macey, travel buyer for the Medical and Dental Defence Union of Scotland, a medical indemnity union for healthcare professionals. Individual travellers are allowed to keep the hotel reward points “but they do not affect the way we book hotels or which hotels are chosen”, he adds. Jef Robinson, a travel buyer for an international software organisation, also says that employees can retain hotel award points for “transient travel” to help improve their productivity or reduce direct company costs. So ‘best-available’ rates though loyalty schemes are helpful, where no pre-agreed rate exists, while free wifi, breakfasts and other loyalty perks both can enhance the stay and reduce expenses incurred. The benefits of the new generation of


hotel rewards are particularly useful for those companies in the unmanaged travel sphere, such as SMEs (small- and medium- sized enterprises). But they are also impor- tant in the managed world where preferred hotel agreements are increasingly popular. “Hotel loyalty programmes do help drive


compliance so long as the traveller doesn’t go ‘off piste’ and have a loyalty card with a non-preferred chain,” points out Stuart Birkin, Corporate Travel Management’s director for account management.


36 BBT November/December 2016


“If the corporate buyer selects the right preferred hotel chain in the first place, policy compliance and value should be high as travellers build up their points within that scheme,” he says. “And the hotels will get repeat business, so everyone wins.”


GETTING THE BEST DEAL Yet one unanswered issue is whether the ‘book direct’ strategy adopted by the major chains is the only way to get the best deals for buyers. As FCM Travel Solutions’ gen- eral manager Jo Greenfield told editor Paul Revel in Buying Business Travel’s last issue, travellers can get the same benefits – such as loyalty points – booking through the travel management company (TMC) and global distribution system channels.


Paul East of Wings agrees. “We believe


it comes down to a case-by-case approach between the TMC and hotel suppliers,” he says. “We understand our clients’ objectives and so when we meet with hotel suppli- ers we make these points clear. Then it all comes down to reaching the best agreement that can be made.” Yet for those road warriors out there looking for something different from their hotel loyalty programme – such as how to use their (company-paid) points for the best-value holiday – then head to Muchopoints.com, a fledgling US website which not only helps you earn the most points from your hotel stay but will also help find a suitable holiday hideaway. But just don’t tell the boss.


Will SPG deliver for Marriott?


WHILE MARRIOTT INTERNATIONAL was one of the first hotel chains to launch a loyalty scheme way back in 1983, it was the Starwood Preferred Guest (SPG) programme (which debuted in 1999) that took the concept to a new level by scrapping the much-hated ‘blackout’ dates and capacity controls on room availability at busy times. Starwood has remained an innovator in the loyalty world: in 2014, for example, it created a loyalty scheme (SPG Pro) for meetings and event planners, and other travel professionals who brought business


to the group’s hotels. Starwood also claims to be the first to have developed a programme of special ‘experiences’ for members, called SPG Moments, which include VIP access to top sports, music and theatrical events, with opportunities to mingle with the ‘stars’. In some respects it’s surprising that Marriott CEO Arne Sorenson has been so keen on acquiring SPG. The 2016 annual survey of North American hotel loyalty programmes, carried out by US market research group JD Power earlier this year, found that SPG came 13th out of the 14 schemes monitored.


Yet another new survey (October 2016) of six global hotel loyalty programmes, carried out by US travel marketing consultancy Ideaworks, put SPG in bottom place for reward value of just US$5.60 for every US$100 spent on room rates, while Marriott came second (US$9 for every US$100). But SPG did finally come out ahead of Marriott in the Best Hotel Loyalty Scheme category at the 2016 Business Traveller Awards in October, as readers placed it third, with Marriott fourth. Hilton HHonors took top spot, with IHG Rewards Club second.


BUYINGBUSINESSTRAVEL.COM


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