Travel industry observer Tim Winship speculates that the “Long Run of Generous Hotel Bonuses May Be Ending”. Winship points to a number of recent rich points promotions at major hospitality chains, noting that “The current offers are a continuation of what has been the longest period of sustained promotional activity in the hotel industry’s history.” But if and when the hotel industry rebounds–and hotels fully expect that it will, “we could be witnessing the beginning of the end of an exceptionally lucrative era for deal-seeking travelers,” says Winship.
In fact, when Winship points to stats showing a rebound in the airline industry, he notes, “With capacity aligned with demand, and travelers willing to pay above-breakeven prices, the airlines have little incentive to deploy generous frequent flyer promotions to boost business.” And indeed, pure points/miles promotions are hardly rampant. Yet, airlines have been making moves to solidify their customer base in the face of better times–Delta has eliminated SkyMiles expiration and Southwest is revamping its Rapid Rewards to include any-seat-available redemptions, as two examples.
Yes, we’ll likely see the relaxing of triple- and quadruple-point promotions (can quintuple- and septuple- be far behind?), and perhaps we should before these deals become as commoditized as the cherry-picking bait of constant deals in discount marketing. But the time isn’t right to take the foot off the accelerator in making stays rewarding–and may never be. Now is the time to continue to offer rewards initiatives that acknowledge, retain and help learn about the customers whose first activity or increased activity was inspired by generous points promotions. They’re in the fold–for the moment. Keep them there now and into better times with relevant communications, offers, perks and recognition.
