For years, consumer advocates like me have been warning consumers like you that loyalty programs aren’t the “win-win” propositions companies claim they are.
To which loyalty program apologists, whose judgment is too often distorted by the intoxicating Kool-Aid of points and miles, countered: Prove it!
Well, now we have that proof.
A new study of hotel frequent-guest programs suggests that, far from costing companies money, the programs increase their share of room nights by anywhere from 150 percent to 500 percent. Just over 7 of 10 guests purchased at least one additional room night with real money, according to the study by Phoenix Marketing International.
“Read this before you sign up for a loyalty program”