Interview with GHA

The Global Hotel Alliance (GHA) was launched in March 2004 and is today the world's largest alliance of independent hotel brands.  The GHA brand currently includes Anantara, Doyle Collection, First, Kempinski, Leela, Marco Polo, Mirvac, Omni, Pan Pacific, PARKROYAL and Tivoli hotels and resorts, encompassing over 270 upscale and luxury hotels with over 60,000 rooms in 47 different countries.

GHA Discovery, the new global loyalty program from the Global Hotels Alliance (GHA), launched in June 2010.GHA Discovery aims to consolidate existing hotel programs in the alliance whilst bringing loyalty to other brands for the first time. We speak to Vicky Elliot, Director of Marketing Services for GHA about the reasons behind the launch of GHA Discovery, its key features and challenges, as well as the future trends in this sector.

Q1: Why did GHA decide to launch its own loyalty program?

Loyalty programmes are often mistaken with pure incentive programmes, which merely reward repeat customer stays by offering points and discounts. GHA has made the strategic decision not to compete in the points-driven market. GHA Discovery, our innovative guest recognition programme, was designed to enhance the emotional bond between customers and our member brands. Customers will receive enhanced service and recognition, while earning experience-based awards across all our hotels. Cost saving is also a factor - by joining forces our loyalty scheme is more attractive for smaller hotel brands but equally important is global reach and relevance for the international traveller.

Our objective is to increase the number of repeat stays in our members' hotels, the number of multi-hotel stays within our member brands and cross-brand stays within GHA.

Q2: How will the program work and what types of recognition and awards will members receive? How does it differ from other hotel reward programmes? (global vs local)

GHA Discovery is not a points-based traditional loyalty programme. We provide our customers with unique Local Experiences at each tier level, as a reward for their loyalty.

Each of our tiers is more aspirational and exciting than the last one. Providing Local Experiences ensures that even on reaching the highest tier level members continue to be intrigued and excited by the product.  Local Experiences are about providing GHA Discovery members with the opportunity to discover the world outside of the hotels: Giving them access to activities they would not normally be able to do and to bring the discovery element back into travel.

Examples of how localisation will work for Gold tier members including early park entrance to Sea World, dine with 'Shamu' and his trainers, and backstage access to shows (Omni San Diego);  or for Black tier members staying at the Anantara Desert Island Resort and Spa, Abu Dhabi - Radio-tracking Cheetahs in the Abu Dhabi Desert Islands - something  not accessible to regular tourists.

Q3: Who do you see as your main customers for the GHA Discovery Program and what research did you do to help GHA define the loyalty proposition to target them?

In Spring 2009 GHA conducted customer research by inviting 6 customer groups (2 inNew York, 2 inLondonand 2 inHong Kong) to round-table discussions. The groups consisted of frequent travellers, who travel at least 5 - 6 times a year for business or leisure, who stayed in 4/5* hotels and were part of loyalty programmes for hotels or frequent flyer programmes. The objective was to identify the needs of customers to create a robust guest loyalty programme validated by consumers.

This research has shown that customers value recognition more than points collection; surprisingly few are really interested in the collection and redemption of points. Another finding was that customers are more likely to talk to friends and colleagues about their experiences (local and cultural) rather than points collected. Redeeming of points is sometimes viewed as hard to achieve and subject to many conditions and a promise for the future.

GHA Discovery is focussed both on business and leisure travellers. Generally the more frequent travellers belong to the business traveller segment.  As our industry has set best practice standards for loyalty programmes, and our guests have come to expect these, we also provide upgrades, complimentary internet, late check out, early check in, etc. This is a critical success factor dictated by the market. But we differentiate ourselves by going above and beyond and providing every benefit in a generous, surprising, personalised and authentic way.

Q4: How important is data segmentation and customer communications within the programme?

Through our technology partner Micros Fidelio, GHA Discovery is able to identify member profiles and their stay and programme activity at a member brand, region, country and hotel level.  Working with ICLP's and utilising their expertise in using data to gain insight, GHA Discovery has created a communication strategy that targets the right customers with the right message at the right time.

Using targeted trigger communications we have implemented a platform to ensure that our members receive motivating and rewarding messaging at key points throughout their membership lifecycle.  The messages help to enhance their engagement in the programme and focus on the programmes Local Experience opportunities that members have either received or are close to receiving.

Q5: What challenges do you foresee for GHA Discovery and the hotel industry in the future?

One of the biggest challenges will be to keep front-line staff motivated and informed about GHA Discovery.  If we fall short on delivery, it doesn't matter what promises we make.  We have several methods of engaging with employees across the Member Brands including not only the traditional training courses and e-learning but also an innovative social network site, like an internal Facebook, where employees are encouraged to share and create ideas, provide suggestions and discuss pertinent topics.  It has been a great success with helping create our Local Experiences. 

The hotel industry has such a wealth of knowledge and data on our customers, yet one of the greatest challenges all hotel companies face is how to bring this all together in a meaningful manner and then actually be able to use that information for effective, relevant and targeted marketing.  We tend to restrict ourselves by categorising guests by their reason for travel (business or leisure), whether they travel individually or as part of a group or meeting and their method of booking.  Everyone is silo-managed - a guest is either one or the other.  We don't recognise that today the guest traveling on business is the same person who tomorrow is going on a family holiday.  They are treated a separate instances and in communications we do not bring the two together.  With technology that is available today, especially on the web, we should be able to be more predictive of rather than reactive to guest's needs and behaviour and then be able to adapt communications accordingly.