Loyalty schemes and the battle with airbnb

Loyalty schemes are certainly nothing new, but as companies have become more pressed for cash, it often seems to be the loyalty schemes that get squeezed first, rendering the trade off for the data and loyalty provided to the company rather less appealing.

So it was fascinating to be invited to the Music Happens Here program that hotel group Hilton have recently launched as part of their Honors loyalty scheme.  The program is designed to provide Hilton Honors members with a range of unique musical experiences.

The gig I was invited to was a fine example of that, as it saw award winning rock band OneRepublic put on an exclusive, one hour show for members at the famous Abbey Road studios in London.  Whilst there was complimentary food and drink, the real draw was undoubtedly hearing a super band in an amazing location.

It’s the kind of experience that Hilton hope will set their loyalty scheme apart from the rest.  Via “Music Happens Here”, they hope to offer members access to top concerts private meet-and-greets with chart-topping artists, one-on-one artist experiences, and private concerts at Hilton hotels and resorts and in iconic music landmarks.

“Music has always happened in and around our hotels and resorts throughout the world.  From The Beverly Hilton hosting the first GRAMMY Awards to John Lennon penning the lyrics to Imagine on Hilton New York Midtown stationery – Hilton will always be the world’s stage for extraordinary experiences,” said Mark Weinstein, Hilton’s Senior Vice President and Global Head of Customer Engagement, Loyalty and Partnerships.  “Music Happens Here honors our legacy of celebrating travel through music and signifies our future at the center of music’s greatest moments by creating exceptional new experiences for our Hilton Honors members. I’m thrilled Spotify has joined us and Live Nation on this journey to inspire our guests to travel the world and visit the places where music happens.”

A competitive landscape

It’s an interesting project, in no small part because of the considerable competitive pressure from companies such as Airbnb, whose home sharing platform offers a degree of integration into a location that is hard for any commercial hotel to match.

The Honors program is a clear attempt to target a different audience and retain high levels of loyalty by offering regular customers the kind of experiences they will struggle to get elsewhere.

Some recent Hilton Honors experiences have included:

  • Private concerts with Jason Derulo, Halsey, Elle King, Kip Moore and Gary Clark, Jr.
  • Spa sessions with Kelsea Ballerini, Tinashe and Colbie Callet
  • Backstage access with Andra Day, Barenaked Ladies, and Imagine Dragons
  • Dance lessons with Derek and Julianne Hough and Maks & Val Chmerkovskiy
  • Music lessons with Mick Fleetwood, Mike Posner, Christina Perri and Cody Simpson

It’s certainly a nice approach, and time will tell just how effective it proves to be in an increasingly competitive market.

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