Tuesday, 6 May 2025

In praise of loyalty schemes

Asserting Customer Loyalty

I consider myself an advocate for loyalty schemes, as I have participated in a few, some of which offered benefits I never utilised when I was unable to take full advantage of them.

However, I have found the best perks in the hospitality industry. The benefits and rights you receive as a loyal customer can greatly surpass those of a casual, unregistered user of a service.

One case in point was when I had the Accor Favourite Guest Card, which I lost almost 15 years ago. While visiting Berlin and checking into a hotel I had used many times before, a Mercure brand hotel, the check-in clerk informed me that the hotel was fully booked.

That was not what the Accor Favourite Guest Card guaranteed; I had a room in the hotel of my choice secured, no questions asked, and I asserted that fact. Their suggestion was to put me up in another hotel for one night and return to my chosen hotel for the last three nights.

I refused, stating to the clerk that I didn’t want to be moving around Berlin like a prostitute. I gave them twenty minutes to come up with a better proposal: a booking in another hotel of the same standard or better for the four nights, which they did, even paying for the taxi to transport me to a hotel suite in an even more exclusive part of Berlin.

The Tangible Value of Loyalty

Without my loyalty program, I would not have been able to negotiate that outcome. After leaving the Accor Favourite Guest Card scheme, I joined the Hotels.com rewards program, which gives you a monetary average of every accumulated 10-night stay as a reward night to help offset the costs of staying at hotels booked through that app.

Since 2013, I have saved over £4,500 using my loyalty reward nights, but they have changed the scheme. Aside from not understanding how the new system works, I feel it is not as beneficial. Additionally, I have secured some good deals through Booking.com.

Having once lived in the Netherlands, I became a frequent flyer with KLM, which later merged with Air France as part of the SkyTeam alliance. Over the years, I have earned statuses and miles that covered my return flights to India in 2011 and to South Africa in June 2024.

With this loyalty scheme comes priority boarding, extra baggage allowance, a choice of seating, an air mile multiplier for each Euro spent, depending on status, along with complimentary access to the lounge if you hold a gold status. For years, I had platinum status until the aftermath of the pandemic reduced it to just Silver.

Choose and Stick with It

In my view, everything must be done to maintain at least a minimal loyalty allegiance, rather than starting from scratch again. My frequent flyer miles and hotel reward benefits have been invaluable in saving upfront costs. Choose a brand carefully, study what they offer, and how it compares to the competition, then make a commitment.

It might be pricier, but your patronage amounts to something significant; there is value in storing loyalty rather than endlessly chasing the most affordable price from anyone offering a service. Being a creature of habit by adopting a loyalty scheme is not such a bad thing.

With loyalty store cards, you occasionally receive discounts from the retail price, which can be up to 50% or more. As one supermarket suggests, “Every little helps.” 

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