Loyalty Study

Author: Mark D Smith

Source of Data: Brand Download - Guest Data 01/01/2019 - 06/12/21

Study: Does it make sense for an economy hotel to offer loyalty rewards?


This study is about the effect loyalty programs have on economy hotels by encouraging local guest (within 20 miles) to frequent the property. One of the biggest problems an economy hotel is it's local guest. Let break this down. Local guest are not traveling needing a place to rest, they are not from out of state visiting family, they are not tourist so why do they want to spend $90.00 at a hotel ? Occasionally a local guest may stay at the property because they have issues like power outages, etc. but 95% are here:

  • To Party
  • Home base for illegal activities
  • Recently Homeless
  • Under age drinking
  • A Hideout

80% of all issues such as damage, smoking, police calls originate from local guest, which is why many hotel owners try hard to discourage this business.