Millennials represent the most lucrative market for hoteliers, so how to get millennials to join your hotel loyalty program?

Today’s 86 million millennials, born between 1980 and 2000, hold $200 billion in spending power and represent the most lucrative market for hoteliers. We looked into this generation’s relationship with hospitality brand loyalty and outlined ways for hotels to funnel more millennial guests into signing up for their loyalty programs.

What Sets Millennials Apart

Only 14% of millennials, who tend to spend at least 25 hours a week online, belong to a hotel rewards program, according to a recent study by Software Advice, which surveyed a random group of 18 to 34-year-old consumers about their hotel loyalty program preferences.

Millennials are more discerning than previous generations because they tend to do a lot more research on their travel options, going to TripAdvisor and Yelp, browsing hotel social media accounts, and reading media coverage about the brand.

This group is open to interruption, but turned off by annoyances, according to Advertising Age. They like to be “in the know” and the first to share new information. They prefer “real-time” insight showing their progress in building rewards.

Offer Simplicity, Transparency and Meaning

Millennials appreciate frequency of rewards, but they really like “surprise and delight." This includes receiving unexpected rewards based on their preferences. If they purchased an item at the spa, you should send them a discount on a spa treatment. The same goes with golf or water sports.

“Surprise and delight” can be small things, like cookies or snack left in the room. The La Quinta Resort and Club in California’s Coachella Valley, which opened in 1926 as a desert getaway for movie stars, greets each returning guest with a big yellow bow on the door to their room.

Not only do loyalty programs help with customer retention, but as guests earn more points, they tend to spend more with that brand. Software Advice’s report showed the primary reasons and incentives that push millennials to join loyalty programs:

1. Brand loyalty

2. Easy-to-earn rewards

3. Simple sign-up

4. Variety of reward options

Among the millennials surveyed, 51% said they most frequently redeem loyalty points on:

· a free or discounted stay

· room upgrades (19%)

· airline tickets (12%)

These rewards can help millennials save money on purchases they would make anyway on future trips. Other desirable rewards include food or room service, downloadable media, and spa services.

Identify your past millennial guests and then target them via marketing campaigns to show what your can offer beyond just a free room.

A loyalty program should offer rewards early and often, even as early as following the first stay. Rewards should be staggered to maintain interest.

Communicating Loyalty Rewards To Millennials

49% of Software Advice’s survey participants prefer to learn about their points through a simple notification email, which also presents another marketing opportunity for hotels. Most software brands have some type of online dashboard members can access to check points or redeem rewards, but these are not necessarily the most popular options.

Use a conversational tone and state clearly and quickly whether the reward is a service or product or idea.

Using Social Media As a Way to Earn Points

When Software Advice asked their millennial participants if they would jump at the chance to earn loyalty points by post to social media, the group was evenly divided, with 27% saying very likely, 27% not at all likely, and similar numbers in between.

The Four Seasons Hotel in Jackson Hole found success among millennials with its “#StealthStache” campaign, when guests were encouraged to post photos of their real or fake moustache for the chance to win a trip for two to the property. The campaign used a combination of humor and relevant trends among the age group while encouraging co-creation.

When Marriott wanted to promote its CasaMagna Marriott Cancun Resort, it asked travel bloggers to post on their social media account with the “#gottequila” hashtag. The campaign reached almost two million viewers.