Hotel membership needs a revolution.
Column |Cultural Tourism Business Observation.
Fields |Hospitality.
Points are cleared at the expiration of points, annual level maintenance operations, and virtual rights and interests ......Soon, you'll be able to say goodbye to the unspoken rules of these hotel loyalty systems.
Since the beginning of this year, there have been many news about the hotel membership loyalty program. First abroad, Ennismore, Accor Holdings, launched a "disloyal membership program" that does not need to earn points and upgrades, but needs to pay an annual fee of $216.
Subsequently, Hyatt and Hilton expanded the rights of high-level members to give membership benefits to family and friends of non-members.
It is not difficult to see that behind the sudden change in the situation is some of the old diseases of the hotel membership system, there are many dazzling hotel membership loyalty programs on the market, but now young people live in hotels are always very "free", if they see that they are not interested in this brand, they simply break up, let go of the brand, and let go of themselves.
In this case, when the post-00s began to rectify the hotel industry, some member loyalty programs that do not need to be relegated and do not need to worry about clearing zero are brewing in the collision.
In line with the changes of the times, domestic local hotel groups are also eager to try.
Dehao's member brand "Baida House" has launched 24 points of free refund, no need to maintain grades, points do not expire, cross-brand live ten to one and other policies, because the brand ADR covers the ** range of 300 to 3000, theoretically can achieve 3000 "free giveaway" 3000.
Speaking of Zheng Nanyan and New Century Hotel Group, everyone is no stranger, Dehao is the crystallization of the two, a hotel and experience consumption group that includes the national brand benchmark New Century Famous Capital, New Century Famous Garden, high-luxury Fangwai, resort series Parkview Green, Guantang, niche luxury Ruby, selected business Manju, Yiju and other brands.
Probably inheriting Zheng Nanyan's spirit, Patek House subverted the core framework of the "money standard" of the membership system as soon as it came out - calculating membership points according to "check-in time".
In other words, as long as you stay for the same amount of time, you will get the same points at Patek.
Real shot in the travel world. Such a generous membership policy seems to be "anti-commercial" logic, what are the Patek Wood plotting?
We all know that time is a non-renewable resource, and the shrewdness of Accor and Patek is to grasp the time of users in the new consumption eraOne is that as long as you pay real money**, no matter how long you live with me, and the other is that as long as you live long enough, I will give you the most unique experience.
In fact, with the disappearance of the demographic dividend, new consumption has come to a period of integration, and the same is true for the hotel industry.
Either use "money" for time, or use "time" for "money", when the total amount of the industry tends to stabilize, at this time any enterprise wants to expand its territory, it will spend several times the effort to snatch customers and markets from other people's bowls, and some new ways to play are imperative.
Whether it's Patek Wood's 10-for-1 stay, or Hyatt's high-level members, it's all about retaining more loyal members in the name of a better experience.
According to Skift Research, hotel members are far more profitable than non-members, contributing 30 to 60 percent of room nights, while hotel members typically have an average daily rate 10 to 15 percent higher compared to non-members.
As a result, today, when the hotel membership system is gradually stepping out of the dividend comfort zone, the retention and management of members has become an important resource battlefield.
In the past period, many hotel groups such as Dehao, InterContinental, Accor, and Huazhu have upgraded their membership systems, focusing on not only saving money, but also providing users with better services.
In fact, from the perspective of the history of the domestic hotel membership system, this business model has gone through many generations of evolution.
At the turn of the millennium, China's economy began to take off, and the Internet has also begun to develop, 7 Days Inn took the lead in launching the "IT + Membership" model, becoming the first hotel in the industry to accept multi-channel reservations through the Internet, ** SMS and mobile phone at the same time.
In 2012, at the beginning of the mobile Internet era, Huazhu created a digital system of "30-second check-in" based on the idea of one-stop service experience, bidding farewell to the trivial procedures at the hotel front desk and reducing unnecessary human resource costs.
Another decade has passed, coinciding with the evolution of the hotel industry from "Chinese service" to "Chinese experience", Atour launched ACARD, extending membership additional benefits to reading, sports, food and other scenarios.
Nowadays, in the second half of hotel development, in the context of the era of "experience consumption", the market needs to jump out of the traditional logic and release the true value of the membership system0 products, and Patek may be the representative of innovation at this stage.
Interestingly, Zheng Nanyan, the helmsman of Baida House, is also exactly 10 represents the founder of 7 Days Inn Hotel.
Intercepted from Patek Wood*** Membership rights and interests highlight the value of "experience".
If the membership system wants to capture users, it has nothing more to rely onDiscountsFun and emotion, the difficulty from shallow to deep.
According to Patek Wood***, Patek Wood's first member "Brand Month" entered Yuyao Yangming Guantang and invited more than 60 Patek Wood members to experience the local culture of Jiangnan for free offline. Make the experience thicker, and the emotional needs of users are grasped.
The diversity of brands and rights also ensures that Patek does not do too much in terms of fun
Fun and emotion can be played well, and discounts are even easier for Patek Wood.
Patek recently launched the "Patek Card", which is divided into three levels, and the core rights and interests are 5% off the calendar room, as well as 9% off food and beverages, free afternoon tea and other rights. The design of this product can be seen to be a lot of effort, the lowest price, a single return to the cost of 98 yuan card can only be purchased by new members.
Screenshot from Patek Mini Program
The growth of membership scale is different from many other businesses, and it is necessary to achieve a snowball effect, and this snowball needs to roll big, and two core conditions are needed, first, there must be a steady stream of new snowflakes involved. Usually, new snowflakes come in because new rights and interests stimulate users' consumption needs. Second, what is more important than the arrival of new snowflakes is that this snowball needs to be a solid organization in the process of rolling, which can be understood as pulling up the retention rate of original members.
The reason is that convincing the "new snowflake" to join the hotel membership system is only half the battle, and keeping the "old snowflake" active and redeeming points is a challenge. The design of Pateka hits the above two points, and it is said that 10,000 copies were sold in the first month of its launch.
Once this snowball effect gains an initial advantage, the snowball will get bigger and bigger, and the advantage will become more and more obvious, and given enough time, the snowball will roll into a staggering enough volume.
It is reported that the number of Patek Wood members has exceeded 30 million, with a growth rate of 65%, and loyal members have accumulated 11,000 hours of consumption.
As a loyalty program that "leaves its peers behind" to some extent, Patek Wood, which dares to "eat crabs", is an excellent sample to observe in the hospitality industry in 2023.
At a time when consumption is sluggish, hotels are one of the few industries where demand continues to grow.
The latest earnings reports of Marriott International, Hilton, and Hyatt Hotels Corporation all show significant growth in revenue and net profit. Looking at China, in the first half of the year, the revenue of Huazhu Group, Jin Jiang Hotel and BTG Hotel increased by at least 30%.
The recovery momentum of wine and tourism consumption is unabated, and the test of the hotel membership system in the future is the ability of the hotel group to move from "accommodation" to "destination", and the high-star hotel brand has a unique advantage in this regard.
For example, Marriott, InterContinental, and Hilton's points can be used not only for accommodation, but also for dining and spa experiences.
In this regard, the domestic high-star hotel brand is also catching up, or taking Dehao as an example, on the basis of the traditional high-star hotel, it not only includes a variety of formats including script killing and quality education, but also includes Fangwai, Guantang, Fangcaodi and other resort brands that will experience thickness.
People only have 24 hours a day, and the essence of consumers' willingness to pay is that they are willing to spend more time for the brand, be attracted by the services provided by the brand, and resonate with the concept conveyed by the brand.
In other words, the time value of high-spending people is higher, and they value the experience more, and the points only play a small role in adding points.
The purpose of calculating points with length of stay, redeeming 10 for 1 across brands, and giving away high-level members for free is all to retain new users who are really interested in the brand.
For hotel brands, when customers are guided to a new consumption model, it will improve the stickiness to the brand and stimulate potential customers, which is equivalent to saving a hidden marketing expense.
Whether it is the repurchase ability or the brand influence, the strength of the member users who have high stickiness with the hotel should not be underestimated, and it is precisely by seizing this group of valuable high-net-worth users that the unique Patek has become a dark horse.
In the long run, the hotel is a long-term industry that can continue to operate, and it is not only necessary to add value to the customer experience, but also to gain insight into the customer experience, and then establish an operation management work with customer loyalty as the core to achieve the management of customer experience.
Loyalty programs are still a business model for building strong relationships between major hotel groups, brands and consumers, but instead of calculating how to make consumers "automatically renew" through routines, it is better to increase stickiness by providing high-quality services and experiences, which may be some inspiration and thinking that Patek has brought to the industry.
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