Cornell Report on Hospitality Loyalty Programs Wins Industry Relevance Award

Contact: Carol Zhe, 607.254.4504, caz9@cornell.edu

FOR IMMEDIATE RELEASE:

Cornell Report on Hospitality Loyalty Programs Wins Industry Relevance Award

Ithaca, NY, May 7, 2015 - A report demonstrating the value of hotel loyalty programs has won the 2015 Industry Relevance Award from the Center for Hospitality Research (CHR). The report, "Assessing the Benefits of Reward Programs: A Recommended Approach and Case Study from the Lodging Industry," offers a graduated set of methods for hotels to measure the effects of their guest loyalty programs. The researchers, Clay M. Voorhees, Michael McCall, and Bill Carroll, compared the revenues and room-nights for loyalty program members and non-members, based on thousands of guest transactions for two unrelated hotel companies. They found that loyalty program members were bigger spenders at both hotel firms, primarily because members stayed at the hotels more frequently than non-members. The report is available from the CHR at no charge.

McCall is director of the School for Hospitality business at Michigan State University, where Voorhees is an associate professor. Carroll is a clinical professor at the Cornell School of Hotel Administration.

The Industry Relevance Award recognizes faculty who have researched an important topic and created a CHR Report or CHR Tool that has had significant impact on the hospitality industry. The award winners are determined by the CHR's advisory board research committee members and the users of the CHR's website, based on downloads and nominations from industry practitioners. With hundreds of downloads, this report is number five in CHR downloads in the past year.

The researchers conclude by urging industry leaders to examine their loyalty programs for ways to structure those programs to optimize the lift available through such programs. For example, changing reward frequency may further increase customers' spending. By improving the loyalty program, the report concludes, hoteliers may also increase guests' emotional attachment to a brand.

About The Center for Hospitality Research
A unit of the Cornell University School of Hotel Administration, the Center for Hospitality Research (CHR) sponsors research designed to improve practices in the hospitality industry. Under the lead of the center's corporate affiliates, experienced scholars work closely with business executives to discover new insights into strategic, managerial, and operating practices. To learn more about the center and its projects, visit chr.cornell.edu.

Center Partners: Accenture, Access Point Financial, Cvent, Inc., Davis & Gilbert LLP, Deloitte & Touche USA LLP, Denihan Hospitality Group, Duetto, Four Seasons Hotels and Resorts, Fox Rothschild LLP, Hilton Worldwide, Host Hotels & Resorts, Inc., Hyatt Hotels Corporation, Infosys Limited, Intel Corporation, InterContinental Hotels Group, Jumeirah Group, Marriott International, Inc., priceline.com, PricewaterhouseCoopers, The Rainmaker Group, RateGain, Sabre Hospitality Solutions, SAS, SONIFI Solutions, Inc., STR, Taj Hotels Resorts and Palaces, Talent Plus, Inc., Tata Consultancy Services Ltd., TripAdvisor, Wipro EcoEnergy, and Wyndham Hotel Group

Center Friends: DK Shifflet & Associates • Hsyndicate • iPerceptions • J.D. Power and Associates • PKF Hospitality Research