While most hotels have loyalty programs, research is showing that many are not living up to their potential. Loyalty Lab reports that on average, only 20 to 40% of program members regularly accrue points toward award redemption. That means hotels are losing out on significant opportunities to encourage at least 60% of their customers to become repeat and loyal customers, and repeat customers can be the most profitable ones.

So what do customers look for today in a hotel loyalty program? Which rewards will be most popular in 2011? What should hotels do to make sure that their loyalty programs appeal to the widest segment of travelers?

According to a new survey from the Chief Marketing Officer (CMO) Council, customers are craving the notion that hotel operators understand them and their needs. More and more customers are expecting highly personalized content with offers that feel as if they were designed specifically for them. And this revelation means that the days of mass blasts with general offers are no longer acceptable.

Loylogic’s 2010 Frequent Traveler Survey echoes these findings. The survey of over nearly 40,000 people representing more than 140 loyalty programs worldwide was undertaken to better understand frequent travelers’ opinions towards their ...