A Better Way to Fast-Track Your Hotel's Loyalty Program

Loyalty programs are cornerstones for hotels, driving guest retention, engagement, and revenue. Building a custom loyalty program platform from scratch, however, can be daunting and expensive. Loyalty-as-a-Service (LaaS) offers a smarter and more efficient solution. This extension of the Software-as-a-Service (SaaS) model allows hotels to implement a loyalty platform without a time-consuming internal build or lengthy third-party development. 

LaaS lets hotels launch effective, feature-rich loyalty programs quickly and affordably. They provide a powerful, all-in-one solution that streamlines the entire process while still allowing hotels the flexibility they need to adapt their programs to guest preferences. With LaaS and its related, more travel-specific counterpart, Travel-as-a-Service (TaaS), hotels can offer a diverse selection of rewards, from complementary travel options like car rental and tours to unique experiences, to incentivize participation and elevate member value.  

Why Go It Alone When LaaS Offers More? 

Many hotels struggle with outdated booking experiences and limited reward options because they build in-house programs. According to our Tipping Point report series, about a third (33%) of hospitality companies have developed their own loyalty platform using internal resources – the number one response. In-house development might seem like it offers maximum control, but it often locks hotels into static frameworks that can’t react as nimbly to shifting guest demands as a cloud-based solution can. LTaaS bridges this gap and offers the best of both worlds: full configurability and constant updates without the custom build hassle.  

LaaS and TaaS platforms offer rich features that keep members engaged and returning for more. They allow hotels to provide a system where booking is simplified and integrated directly into the loyalty program, making it easy for members to use their points and keep the program top-of-mind throughout their travel planning.  

A good LaaS platform will also enable hotels to personalize the guest experience with targeted content and offers, using past stay data to generate valuable insights. This drives program improvement, boosting loyalty and repeat business, which are critical goals of any hotel loyalty strategy. 

Finding the Right LaaS Partner 

So, how can hotels best embrace LaaS? Their first consideration should be looking for a partner with an API-first approach. Think of an API (Application Programming Interface) as a digital language that lets LaaS connect seamlessly with your existing systems. As your needs evolve, you can easily integrate new features, add exciting rewards, or connect with third-party tools—all without a disruptive overhaul. 

Second, consider a partner’s supplier relationships. A strong LaaS partner will have access to a vast network of suppliers, allowing hotels to curate a diverse and enticing rewards portfolio. This includes exclusive partnerships with local attractions, exciting non-lodging travel options, and lifestyle benefits that can complement the travel experience. These options reach a more comprehensive range of guest desires, keeping them engaged and motivated to earn and redeem points for valuable rewards. 

Industry-specific knowledge is also crucial in finding the right partner. Building a high-performing hotel loyalty program requires more than generic loyalty strategies, so look for a LaaS or TaaS provider who understands the hospitality landscape. Their experience helps create a program that resonates with guests and optimizes it for maximum engagement. 

If finding the right partner is how hotels can best implement LaaS, they should consider using it for one big reason. Improved financial performance. 

The Financial Advantage of LaaS 

Besides offering a plug-and-play loyalty solution, LaaS delivers a compelling financial advantage for hotels. Building a loyalty program from scratch often requires significant upfront investments in the technology itself and the personnel needed for development, implementation, and ongoing maintenance.  

LaaS, with its subscription-based model, offers an alternative approach that spreads the cost of implementing your loyalty program over time. This makes it much easier to budget and manage within your existing financial framework. It also frees up your IT team to focus on core hotel operations or explore strategic technology initiatives.  

In essence, LaaS is a cost-effective and efficient way to implement or update a hotel loyalty program. It translates to more financial resources and less strain on your IT expertise, both of which can be channeled into other areas of your business. 

By eliminating upfront costs and ongoing development burdens, LaaS empowers hotels to harness the power of loyalty programs without sacrificing financial resources or IT bandwidth. This allows them to focus on what matters most – creating exceptional guest experiences that drive loyalty and propel their businesses forward. 

To learn more about how LaaS can improve your hotel’s loyalty strategies and generate revenue cost-effectively, download our new eBook, A Bespoke Loyalty Program Without the Big Build. 

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