An Analysis of Points System of Hotel Loyalty Program Based on the Return on Investment

Abstract

This paper explores the benefits of a sales promotion in the hotel industry known as the hotel loyalty program. The hotel loyalty program describes how customers accumulate and redeem their points in the framework of the program,, and determines the number of benefits customers can receive. Five well-known hotel loyalty programs are chosen as a benchmark to assess their gamification effect with a focus on game sophistication and return on investment. A data-driven approach is employed to analyze the gamification techniques of the points system. The present contribution illustrates how the points system works and the real return on investment from the perspective of marketing. It also shows an advantage of its harmonious combination to attract more potential customers and retain the frequent customers.