HOTELS & HOSPITALITY

Euromonitor International Releases Report on the growth of subscription loyalty programmes in the Americas

Since the start of the pandemic, the hospitality industry has tried out various forms of loyalty programs. In the Americas, subscriptions have emerged as a popular choice. This sector is expanding rapidly, and there have been some successes and failures in recent years. This report outlines what subscription services are and recommends best practices for how hospitality businesses can integrate them into their overall loyalty strategy.

GLO

• The hospitality industry faced significant challenges during the pandemic, but it also presents an opportunity to refocus on customer loyalty and recovery efforts.
• Inflation will have a significant impact on loyalty programmes and subscriptions in 2023, as subscriptions can appeal to customers’ sense of rational loyalty and cost savings.
• Subscriptions should be considered in the context of a company’s larger loyalty ecosystem and whether they are a suitable fit for the business and price point.
• Subscriptions offer a consistent revenue stream for companies and may also be used as a loss leader to entice customers to make higher-priced purchases.
• Subscriptions tend to create more loyal customers compared to free loyalty programmes, but they also have a smaller member base, which creates a trade-off for hospitality companies.

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