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The Truth About What It (Really) Takes To Earn Guest Loyalty Today
with Bashar Wali, CEO of Practice Hospitality
Josiah Mackenzie
October 03, 2023
Together with
Good morning. Today we’re learning about:
What it really takes to earn guest loyalty today
The key to hospitality
Staying creative
….and more
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TOGETHER WITH SOJERN
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The Truth About What It (Really) Takes To Earn Guest Loyalty Today
with Bashar Wali, CEO of Practice Hospitality
Bashar Wali
What do we get wrong when we try to earn guest loyalty today? Today, Bashar Wali shares what he's seeing and what you can do as a result.
Loyalty Programs as Bribery
Bashar argues that traditional loyalty programs are essentially a way for hotels to bribe guests into staying with them.
There is no loyalty. The appropriate term is bribery. Come stay here and I will give you points. And by the way, the owner of the hotel is paying for those points. Ennismore came out with this program called Dis-loyalty because they're smart and they get it. Sharan Pasricha, the CEO, is a really smart guy. And he says, screw that, there is no loyalty. At the end of the day, it's bribery. And we're going to be explicit about the bribery, not implicit, right? We're going to call it Dis-loyalty.
Flexibility Over Points
According to Bashar, many guests today are not driven by points or rewards. Instead, what matters to them is flexibility. Early check-in, late check-out, and personalized services are what truly make a difference in their experience.
He shares a survey conducted by the Beverly Hills Peninsula Hotel, where 79% of guests cited the absence of strict check-in and check-out times as the reason for their loyalty. This highlights the importance of catering to guests' needs and making their lives simpler.
Access vs. exclusivity
While access to exclusive experiences may seem an enticing way to build loyalty, it's becoming increasingly challenging for hospitality providers to compete in this space.
I can't compete with Amex. They're going to have the buying power that I couldn't have because they have however many million users. I feel it’s about localized access and know-how. Forget the top 10 Eater restaurants. Let us tell you about our friend Josiah, who has a fantastic Vietnamese place that no one would ever know about. He doesn't have a website. Being my guide to the local market is almost more valuable than being able to get me reservations at Carbone, because there are too many other people competing for that space.
Thoughtful vs. shock and awe
Our conversation also touched on creating memorable experiences. While some hotels and brands opt for shock and awe tactics to generate PR and media buzz, they often lack thoughtfulness and intentionality.
I remember back in the late 90s, the original Ritz-Carlton in Boston had this package where you have dinner for 12 of your friends on the rooftop of the hotel, fully catered, with all the bells and whistles. When you show up, you have keys to a brand new Mercedes S-class and it's yours. No one ever bought it because there was no deal in it. You paid for that Mercedes!
Instead, the key lies in crafting experiences that are truly meaningful and difficult for customers to replicate on their own. It's about going beyond the surface-level wow factor and delivering something that genuinely enhances the guest's experience.
Be thoughtful and intentional. Spare me the shock and awe. We're over it by now.
It's time to rethink our approach to loyalty and focus on what truly matters to customers today. It's about creating a sense of belonging, offering flexibility, and providing thoughtful, intentional experiences that can't be easily replicated.
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