Ringing a hotel bell.

How to control your hotel costs by avoiding hotel rewards programs that you will not use

Promotions (advertise here?)

When you decide to stay in a hotel, be wary of the offers hotel receptionists whip up if you show up without a reservation beforehand. Many hotels want to avoid paying commissions to online travel aggregators and might try to reel you into their own hotel benefits program, the hotel chain that operates the hotel in question. Chances are that the supposed good rate that they come up with after some random tapping on keys on their computer won’t stand up to the test if you compare it.

Therefore, compare their offer at once, right there in front of the receptionist. Go to (undisclosed names of Online Travel Agency, OTA), and any other that you often use for your hotel bookings. Does the rate offered by the receptionist stand up to the test? Or is it almost the same or higher, plus the nuisance of being requested to sign up for their hotel rewards program? You can always say that you prefer to book a room using the OTA of your choice.

Why? You will save your bookings in one place, and OTA’s take care of any customer inquiries about bills that go missing, or conflicting information relayed by hotel staff. You will also have one less card and membership program to worry about, with all the newsletters and promotions that they usually entail. Just ask yourself, do yo1u really want another plastic card gathering dust in a drawer back home?

Who really cares about shiny membership plastic cards these days, especially so if they will not use them frequently enough to warrant the hassle of signing up and sharing personal information.

Case in point – A one-night hotel stay

When showing up in a 5-star hotel, the hotel receptionist presented a supposed good offer which required signing up for a hotel membership card. It just so happens that one in our travel group questioned the offer on the spot, asking how it is calculated, as well as asking how their OTA collaboration works and the complicating request to have our e-mail addresses (GDPR, remember?). The receptionist quickly folded and admitted that it was easier for the hotel to sign us up for their hotel rewards program, instead of paying commission to them. We refused and went for the OTA’s option on the spot. He couldn’t deny us that. The price: The same as if we would have reserved a room directly at the hotel, but minus the hassle of signing up for their hotel rewards program.

Hotelier, ask yourself: If prospective guests are asked to become a member, then certainly that should entail some tangible and measurable benefits in terms of saved money.

The takeaway  – And suggestions  for hoteliers

Don’t take the hotelier’s word for that their offer is competitive. Check on your favorite OTA web or mobile app and compare the prices. Also, ask yourself, is it reasonable to expect that you will stay at other hotels in the particular chain? If not, then why would you sign up for their hotel rewards program?

  • Takeaway for hoteliers: Take the time to rethink the “hotel membership program” so that they actually provide some benefits for your guests, with minimum paperwork, newsletters, etc.
  • Hotelier, ask yourself: If prospective guests are asked to become a member, then certainly that should entail some tangible and measurable benefits in terms of saved money.

Example of an infrequent traveler

Example: If I am an infrequent traveler (2-3 times per year), then chances are I do not want to pay  for a hotel membership program (at least one hotel chain does this).

Example of a backpacker

Another example: If I travel often to smaller cities, as a backpacker and a road trip enthusiast, chances are that a hotel membership program for a 4-star hotel chain that only operates in European capitals, will not be for me. So it could be beneficial to ask the traveler to understand where they travel, show a genuine interest in their travel passion, to see if your hotel chain has a valuable offer to present. And if that is the case, then present the membership program. Don’t educate your staff to throw half-assed “offers” which are essentially the same price as what the guest could find using an online travel aggregator. Who really cares about shiny membership plastic cards these days, especially so if they will not use them frequently enough to have a economical benefit.