La Quinta Corp. faced the same troubles as the rest of the hospitality industry: Last year, the Dallas-based hotel chain’s revenue per average room dropped to $35.53 from $37.95 in 2001. But last Sept. 24 it took steps to slow the losses by relaunching its loyalty program.
So far the effort has been successful by any of a number of measures. As of last month, it consisted of 1.3 million customers, a significant jump from the half-million or so who were enrolled in the old program. Every month 20,000 more sign up for La Quinta Returns, according to Carlos Adams, vice president of relationship marketing.
Members are booking more, too. During the first nine months of 2002, before the revamped program was put in place, members accounted for some 18% of all nights booked. In comparison, during the first quarter this year, participants in the new program reserved 29% of the rooms throughout the chain.
Even better, the average stay of a Returns member rose from two nights to 2.4 nights. For a company that generated $524.3 million in lodging revenue in 2002, that’s a lot of mints on pillows.
Except La Quinta didn’t leave mints on pillows for most of its customers. The company doesn’t compete in the full-service, management-intensive lodging arena, unlike hotels that offer restaurants, cocktail lounges or room service. The chain provides few in-room amenities. But under the new program, top-tier guests receive a small snack and a bottle of water in their rooms, two especially appreciated courtesies at properties that don’t have restaurants.
Customers can enroll online, through a mail-in form or at check-in. For those in a hurry, employees at the registration desk can sign them up with two keystrokes. Those wishing to fill out a form indicating preferences
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