Dive Brief:
- Hotel guests no longer choose a hotel based on price alone. Rather, guests now rely on “the assurance that the stay will deliver on expectations and reward and recognize continued loyalty,” according to a survey by Choice Hotels International, which polled more than 2,100 U.S. adults in January.
- Some 83% of survey respondents said trust is “crucial in determining whether a hotel offers good value for money,” while 73% reported seeking “a dependable balance of comfort, consistency and cost” when choosing where to stay.
- Trust has become the strongest signal of value for hotel guests, while loyalty rewards can be a powerful driver of value, the survey revealed. However, challenges around maintaining trust exist as well.
Dive Insight:
Travelers are shifting from searching for the lowest hotel rate to selecting a stay based on the clarity and value a brand can offer, according to the survey. And loyalty program benefits often translate into value, with 64% of respondents saying earning rewards enhances the value they receive from hotels.
Loyalty programs offer tangible benefits through discounted stays, savings, reward nights and point perks, with guests receiving “accessible and immediate” recognition for their stays, according to Choice Hotels. This is important as guests increasingly “want to feel recognized for their loyalty early and often,” the company said.
Nandika Suri, Choice’s vice president of loyalty, previously told Hotel Dive that travelers are interested in getting the maximum value out of hotel brands, which has led hotel companies like Choice to elevate their loyalty rewards offerings.
Meanwhile, hotel loyalty programs are increasingly important as a cost-saving method, a December Marriott Bonvoy survey found.
Beyond loyalty rewards, “small but meaningful” on-property gestures can significantly add value, the Choice Hotels survey detailed. Some 75% of respondents said “thoughtful gestures, such as outstanding service or small freebies, play a greater role in shaping value perceptions than basic amenities.”
Trust can quickly erode, however, when guest expectations are not met. For example, 57% of respondents reported encountering a “good deal” that was undermined by hidden fees or inconsistent quality by other brands.
In recent years, hotel organizations have condemned hidden fees, or “junk fees,” for their deceptive nature.
