Abstract
This study shows that frequent-guest programs have little effect on most travelers' hotel choice. In fact, many travelers are unaware that such programs exist. Other travelers know about the programs but elect to ignore them. Reasons cited by this group include loss of flexibility in selecting a hotel, too few trips to earn anything of value, and unattractive awards. Still, FGPs are important to a select group of travelers. To attract these upscale travelers, the authors suggest improving the programs' appeal by offering what travelers really want-room upgrades-for fewer "points." Another program improvement would be to make awards transferable to family members and friends. Since travelers generally concentrate on one program to be able to claim their award sooner, the chain with the most attractive program will become the preferred place to lodge.
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