Award Date

Summer 2011

Degree Type

Professional Paper

Degree Name

Master of Science in Hotel Administration

Department

Hotel Administration

First Committee Member

Clark Kincaid, Chair

Number of Pages

89

Abstract

This paper examines the various loyalty program strategies and design elements utilized within the hospitality industry and evaluates the implications of the various strategies on establishing and fostering loyalty among consumers within a hyper competitive industry. In order to maintain competitive parity, many programs have constantly lowered reward thresholds and increased program offerings, making such programs very costly and with little direct evaluation in their ability to stimulate true loyalty. In a society bombarded by loyalty programs in almost all industries, consumers are becoming very savvy in comparing their personal rewards to the effort and inconveniences incurred by enrolling. The success of many loyalty programs have resulted in the establishment of independent companies, while other programs struggle to stimulate revenue and true loyalty however exist due to the popularity among consumers. Relationship marketing specialists require a comprehensive tool to understand and evaluate the various elements of loyalty programs to ensure their profitability and success due to the substantial financial commitment by companies in operating such highly popular programs.

Keywords

Customer loyalty programs; Hospitality industry; Relationship marketing

Disciplines

Advertising and Promotion Management | Hospitality Administration and Management | Marketing | Strategic Management Policy

Language

English