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Who wouldn't want discounts while dining and staying at five-star hotels, complimentary stay, free drinks, access to facilities such as spa and swimming pools? Will you sign up for a loyalty or membership programme with a five-star hotel for these facilities?
Mumbai resident Chintan Sanghvi, a silver membership holder of AccorHotels, certainly would. For an annual membership of Rs 10,000, he gets a complimentary night stay once a year, a cake on his birthday and a round of free drinks. He also gets a 10 per cent discount on room rates and 25-50 per cent off on dining (depending on the number of people) at any of the group's hotels. Sanghvi can avail of these facilities at any of the group's hotels in the Asia-Pacific region and Australia. Once he accumulates a certain number of points, his membership will be upgraded to 'gold' class.
"I feel it is a good deal, as the group has hotels all over the world. I have stayed in several properties in India, as well as in Australia and New Zealand," he says.
A membership or a loyalty programme offered by a hotel chain isn't a bad idea if you are the sort who dine outside often and travel regularly. But, such a membership has conditions such as spending a certain amount for a loyalty programme or annual fee.
Sahil Shah, also from Mumbai, cites a few drawbacks. For instance, in the case of complimentary stay, you might not get a room unless you book well in advance. Many hotels also have a list of 'black-out' dates such as Diwali or New Year's Eve. On such occasions, you might not get a complimentary room at all, says Shah, who has held memberships with several leading hotel chains. Currently, he has an AccorHotels membership.
Financial planner Gaurav Mashurawalla, an avid traveller, says if a membership is free, there is no harm in signing up, though it might be more beneficial for corporate travellers. Individual travellers or those who travel purely for pleasure need not go out of their way to sign up for such programmes. "Sometimes, the hotel might not have a property in the city you are going to or it might not have the kind of room you want. In such a case, you will not benefit from a membership," he says.
AccorHotels members have access to 2,800 economy to luxury hotels globally. The group runs hotels under the Sofitel, Pullman, MGallery, Novotel, Suite Novotel, Mercure, Ibis, Ibis Styles, Adagio, Adagio Access, The Sebel, Grand Mercure and Thalassa Sea & Spa Hotels brands.
"The programme provides members attractive rates through private sales, such as, up to 40 per cent off hotel stays on select days," says Jean-Michel Casse, senior vice-president (operations), AccorHotels India.
Shah says discounts on room charges aren't very attractive, especially since you can get rooms at the same hotel at lower rates on online aggregator websites.
Rewards points vs flat discounts
Most hotels offer both paid membership and unpaid loyalty programmes. Under paid memberships, members get discounts on dining, drinks, room charges and facilities such as spa for an annual fee. Under unpaid loyalty programmes, customers could sign up for memberships and accumulate reward points whenever they use the hotel's facilities. These points could be redeemed for more services.
Shah prefers flat discounts to reward points, as the latter tie you to a particular hotel.
But, members are treated to special events that might not be open to other guests. Sudha Pai, a member of Taj Innercircle for some time, says, "Apart from getting discounts at all Taj properties for stay and food, there are special events for Innercircle members, which gives it good value."
Hariharan says, "Reward points are more sustainable than a discount. After only two or three visits, your next visit could be complimentary due to the points accumulated."
Check conditions for availing benefits
Often, there are conditions attached to such memberships. For instance, under Trident Privilege, the frequent guest loyalty programme of Trident Hotels, a member has to stay at the hotel at least once a year preceding the expiry of the membership. For the Le Club AccorHotels membership (not a paid membership), a one-night stay is required to retain points that expire on an annual basis, Casse says.
ITC also has a non-paid membership; one has to ensure a certain amount of expenditure or number of stays to be able to enjoy the benefits. What happens if customers miss the benefits by a few points? "We send regular reminders to our customers about such offers," says Hariharan.
While memberships cannot be transferred, members could use the reward points to buy a holiday package for friends, Hariharan says. In the case of Le Club AccorHotels, when members accumulate 2,000 points, they are entitled to a ^40 voucher, which can be gifted to friends or family, says Casse.
