Frequent-guest reward programs at hotels are probably here to stay, although they may offer leaner rewards. In 1990 and 1991, for instance, the Marriott program twice tightened its rules for collecting frequent-flier miles for hotel stays.
New programs are unlikely to emerge because experts say starting one requires the whole marketing budget; some groups that got out of the gate late and could not catch up have left this particular race, notably Omni, Howard Johnson and Radisson. The rest seem committed.
Some hotel groups without programs are offering diverse ”recognition”
rewards as a way of competing without a long-term investment. In this department, the five high-priced Fairmont Hotels have created a President`s Club: A Fairmont terry-cloth robe is sent as a gift after a third stay before Sept. 7.
Frequent-guest programs began in 1983 with Holiday Inns, not long after the airlines began frequent-flier programs. As the guest programs approach their 10th anniversary after a first quarter when hotel rooms in the United States were reported only 57 percent filled, many chains would like to get rid of them but worry about losing a competitive advantage.
A program`s cost to the higher-priced hotels is estimated at $10 a stay by Betsy Bromberg O`Rourke, a vice president of Choice Hotels, which comprises seven medium-priced to budget chains, none with a point-based frequent-stay plan.
Tom Polski, chief spokesman for Radisson Hotels, did not dispute that estimate; Radisson abandoned its Key Rewards point program in fall 1990 for an invitation-only plan for 10,000 VIPs and some on-the-spot rewards for other guests.
Frequent-stay programs center on the accumulation of points-a certain number for each dollar spent, or each night-that can be spent on future hotel stays, air travel or merchandise. The point programs also include some items that do not require a long time to win: U.S. savings bonds, merchandise from catalogs. Best Western`s Gold Crown Club allows the use of points to get a higher rate of return on a certificate of deposit from the College Savings Bank in Princeton, N.J.
Here are some basics about the largest frequent-guest programs, which are joined free except for that of the Sheraton chain.
Marriott`s Honored Guest: This is the largest program, with 4.5 million members, said Gordon D. Lambourne, the Marriott spokesman, and no one disputes this. Lambourne would not discuss estimates that the chain spends $60 million a year on it.
Members earn 10 points for each dollar charged to a guest room at 229 Marriott hotels, resorts or suites, with bonuses for flying on Continental, Northwest and Trans World Airlines, British Airways and USAir or renting a Hertz car. The lower-priced Courtyard by Marriott, Residence Inns and Fairfield Inns do not participate.
The minimum award, 20,000 points-representing $2,000 spent-buys a free weekend night at any domestic Marriott hotel or suite. For 200,000 points, one gets seven nights free at any Marriott hotel, suite or resort in the world, plus two round-trip coach tickets on a participating airline and a Hertz auto for eight days in the United States or Europe. The program began in November 1983.
Hilton`s HHonors: This program, begun in 1987, awards 10 points for each dollar charged to the room at business rates and a lesser amount for promotional rates at 290 Hilton, Conrad or Hilton International hotels, plus bonuses for signing up.
For 5,000 points, a 50 percent reduction in a weekend stay is awarded;
for 175,000 points, 13 free nights are awarded. The partners are American Airlines, United, USAir, America West and Air Canada and Avis, National and Thrifty car rental companies. Club Med and Cunard trips are included in the rewards catalog. The membership totals 2 million.
Holiday Inn`s Priority Club: Begun Jan. 1, 1983, this is the longest-running guest program, now claiming 3.1 million members. Members get one point for each dollar spent on a room at Holiday Inns, Crowne Plazas or Garden Courts. This group also offers points-25 a night-for staying at a Holiday Inn Express, the minimum-service part of the chain. The partners are Hertz and Northwest. From the merchandise catalog an umbrella is 300 points; a three-day cruise for two on the Carnival Cruise Line`s Fantasy is 21,600 points.
Hyatt`s Gold Passport: The 1.8 million members of this program, begun in 1987, earn five points for every dollar charged to rooms at 160 Hyatts worldwide. Bonuses are earned for flying Delta Air Lines, Northwest and USAir, or for renting Avis and Budget cars and staying at Hyatt or for taking a Royal Caribbean cruise. For 3,000 points-representing $600 spent-a stay at Hyatt can be upgraded to the Regency Club level for four nights. For 250,000 points, a 10-night vacation at a Hyatt resort is awarded, together with two round-trip air tickets and a four-day car rental.
Sheraton Club International: This club, founded in 1986, is the only one that charges for joining, $25 a year, and 1 million people are reported to have joined. Because the club earns money and reimburses hotels for free stays, there are no blackout days on free stays. Four points are awarded for every dollar spent at 400 Sheratons worldwide, and 2,500 points, equivalent to $625 spent, earn a $25 rebate coupon for hotel stays, airline tickets or merchandise.
Several catalogs, including Brookstone and Eddie Bauer, redeem these points. The airline partners are American and United; 10,000 points can be turned into 7,500 miles on either airline`s frequent-flier plan.
Ramada`s Business Card: This program provides 10 points for each dollar spent by its 600,000 members at Ramadas in the United States, Canada and the Caribbean. For 10,000 points, a half-off weekend is awarded; for 400,000, seven free nights plus two round-trip international air flights. The program began in 1984.
Westin`s Premier: For each night`s stay, this program awards 1,000 points; members who have achieved higher levels also get a point for each dollar charged to the room. The airline partners are Alaska, America West, Air Canada, United, Northwest and USAir. For 500 points, an upgrade to the club level is provided; for 150,000, a seven-night stay at one of Westin`s tropical resorts. The program, begun in 1987, now has 450,000 members.
Best Western`s Gold Crown Club: The 350,000 members of this club earn one point for each dollar spent at Best Western`s 1,900 domestic affiliates, 1,000 in Europe and 20 in Mexico. Awards can be used for Avis rentals, U.S. savings bonds, gift checks and the CollegeSure certificates of deposit for a child`s tuition. A $100 U.S. savings bond is awarded for 1,150 points. The club began in the United States in 1988.
Stouffer Club Express: Each dollar spent at a Stouffer hotel or resort in the United States earns one point; in Mexico, 200 are awarded for each night`s stay. For 500 points, a $50 savings bond or $25 in American Express gift checks is awarded. For 35,000 points, the award is $3,500 in savings bonds, $1,750 in American Express gift checks or a 17-day stay at a Stouffer resort. The club, begun in 1986, has 250,000 members.
