Red Lion CEO on the Myth of Loyalty Programs Driving Lots of Business
Photo Credit: Red Lion Hotels Corporation CEO Greg Mount says hotel loyalty programs don't drive as much demand for the majority of brands as the industry assumes they do. Red Lion Hotels Corporation
Skift Take
RLHC CEO Greg Mount's comments about loyalty programs might surprise his hotel peers. But when you really think about it, he might be on to something. And instead of focusing so much on building up their loyalty numbers, perhaps there are other ways hotel companies should be focusing on reaching consumers.
Red Lion Hotels Corporation CEO Greg Mount wants to clear something up related to Red Lion's purchase this week of the Knights Inn hotel brand from Wyndham for $27 million.
For those in the industry who might wonder if Knights Inn franchise owners, by becoming part of a much smaller company, will get the short end of the stick with regard to access to loyalty program members, Mount has something to say.
"The only two programs that drive meaningful demand are Hilton and Marriott," Mount said. "Outside of that, some of these other systems have large numbers, but they're not getting a significant amount of demand. It's kind of a falsehood as it relates to what's really being driven. I know there are systems [loyalty programs] out there with 80 million guests to it, but they still have to take 30 to 35 percent of their demand from OTAs [online travel agencies]."
In other words, unless your hotel is affiliated with the Hilton Honors or Marriott Rewards/Starwood Preferred Guest pr
