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Cornell Hospitality Quarterly
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Loyalty Programs

Airlines Outdo Hotels

Frederick Dekay

Albers School of Business and Economics at Seattle University, dekay{at}seattleu.edu

Rex S. Toh

rextoh{at}seattleu.edu

Peter Raven

pvraven{at}seattleu.edu

Compared to hotel frequent-guest programs, airline frequent-flyer programs have gained not only more membership but greater penetration of key groups of travelers, notably, business travelers and high-income, high-frequency travelers. Based on a survey of 287 guests at nine hotels in Seattle, Washington, airline loyalty programs have gained considerably greater awareness among travelers than have hotel programs. One-third of the leisure travelers in this survey reported that they were not aware of hotel loyalty programs (even though they were staying in a hotel). The study found that travelers who join both hotel and airline loyalty programs are also the most frequent travelers. By far, the proportion of travelers who join airline frequent-flyer programs exceeds that of those who have joined hotel frequent-guest programs. Perhaps most critically for hotel programs, the surveyed guests would prefer to receive airline miles for their hotel stay than to receive hotel points.

Key Words: loyalty programs • frequent flyers • frequent guests • hotel marketing

This version was published on August 1, 2009

Cornell Hospitality Quarterly, Vol. 50, No. 3, 371-382 (2009)
DOI: 10.1177/1938965509338780
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