Most hotel and resort loyalty programs involve a “cost-per-point-fee” model. We’ve researched the Brand’s programs as well as some programs which cater to the Independent Hotelier and Resort operator. From a hotelier’s point of view, how can one make sense of the costs and pricing, comparing apples-to-apples?

We set out to compare costs, on a simple basis by isolating costs, based on the following:

1. Isolating Brand Fees related to “Loyalty & Marketing Fees” but not including any other fees. HVS information, based on their annual (2014) Hotel Brand Study. We als
2. Soft Brand Loyalty programs isolated to the price per point they charge, assuming points are issued to 50% of guests.

• $125/night average daily rate (ADR)
• 100 units.
• 65% Average annual occupancy (yes it’s higher in many Urban properties, but we wanted to use a more common annual occupancy for leisure resorts to demonstrate value even at lower occupancies)
• $3,000,000 annual revenue using the above math/number of units/occupancy

Here’s what the comparison looks like: