A report co-authored by a clinical professor at the Cornell School of Hotel Administration recently won the 2015 Industry Relevance Award from the Center for Hospitality Research (CHR). Created by Cornell professor Bill Carroll and Michigan State University professors Clay M. Voorhees and Michael McCall, the report found that hotel loyalty programs are effective and provide a method for hotels to measure how well their own loyalty programs work.
The researchers used thousands of guest transactions from two different hotel companies to compare room-night revenues from loyalty program members and guests who are not members. Upon reviewing the data, the researchers found that loyalty program members spent more at both hotel companies because they stayed at loyalty program hotels more often. Researchers concluded that by improving their loyalty programs, hotels could increase customer spending and customers’ emotional connection to the brand.
The Industry Relevance Award winners are chosen by CHR’s advisory board research committee and users of its website. The loyalty program report was fifth-most downloaded item on the CHR website in the past year.