Assessing the Efficacy of Guest Loyalty Programs in the Hotel Industry: A Case Study of Kimpton Hotels

• Main Author: Brophy, Keith
• Format: Others
• Published: ScholarWorks@UNO 2006
• Subjects: Perks; Consumers; Brand loyalty; Customer Relationship Management
• Online Access: http://scholarworks.uno.edu/td/317; http://scholarworks.uno.edu/cgi/viewcontent.cgi?article=1350&context=td

Since 2004, several small hotel chains have introduced guest loyalty programs in order to give their guests "big chain perks" while keeping a boutique identity. Recent studies have raised concerns that loyalty programs do not create brand loyalty. By looking at Kimpton Hotel's recently introduced program, Kimpton InTouch, this study examines the potential for operationalizing guest loyalty programs in a small boutique hotel chain setting. The study utilizes guest information gathered through customer surveys and reviews guest visits and spending patterns to see if there is any indication that loyal behavior exists amongst members of the Kimpton InTouch. This study demonstrates that frequent stay programs serve as a valuable asset in a hotel's ability to nurture a relationship with its membership and increase the overall awareness of its brand in the marketplace.