Hotel Chains Try New Ways to Earn Loyalty

For Kimpton Hotels, it is a small price to pay for the loyalty of someone like Mr. McHale, a Web entrepreneur who spends 50 or 60 nights a year on the road. And for Mr. McHale, the personal touches - part of the hotel chain's loyalty program - make it worth his while to seek out Kimpton's hotels.

'The level of personal attention really blows me away,' said Mr. McHale, founder and chief executive of Good2gether, which connects nonprofit organizations with donors and volunteers. 'So if there's a Kimpton in town, that's where I'll stay.'

Not all hotels go to such lengths to please their guests, but this year most are stretching their creativity to attract and, perhaps more important, retain guests. Hotels have been particularly hard hit by the drop in business travel, and brand loyalty has often given way to practical cost concerns as companies have cut expenses.

Only 36 percent of business travelers said they were brand loyal this year, compared with 42 percent two years ago, according to Henry H. Harteveldt, a travel analyst for Forrester Research. 'And 2010 is likely to be more difficult for hotels because companies are telling their employees that every penny saved means fewer people laid off or fewer cuts in pay.'

Hotels are responding by offering free nights, upgrades and loyalty points. Many hotels, especially the high-end chains, are introducing twists to cultivate customers. Amenities including free breakfasts, no-fee Internet connections, late checkouts and paid parking are being bundled in business traveler packages. Marriott Hotels, for instance, calls its package 'Business Boost,' while Hyatt Hotels has 'Business Plan' and Sheraton Hotels 'Road Warrior.'

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Source - New York Times

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