Latest / Leaders in Customer Loyalty, Powered by Loyalty360 / #406: BWH Hotels: Elevating Customer Loyalty and Inspiring Travel

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#406: BWH Hotels: Elevating Customer Loyalty and Inspiring Travel · Leaders in Customer Loyalty, Powered by Loyalty360

• 0:02
  Speaker 1: For many brands, customer loyalty programs are a fulcrum that provides a foundation for all of their marketing efforts.
• 0:09
  Speaker 1: They provide a rich data set that can be leveraged to personalize content, offers and incentives.
• 0:14
  Speaker 1: Brands are looking to add incremental technologies to their customer loyalty offerings that have strategic value.
• 0:21
  Speaker 1: Yet the challenge of which new technology will provide the incremental value or possibly serve as a silver bullet for their customer loyalty programs can be a risky and daunting proposition.
• 0:32
  Speaker 1: Yet the right credit card, a co-branded credit card with a tailored value proposition that can be targeted with precision, can be one of the most effective value adds to any program.
• 0:43
  Speaker 1: Yet managing a transition between the past and current credit card issuer, navigating the balance of finding the correct issuer, whether it's Visa, mastercard, discover, american Express and the best issuing bank, is an area where there is significant interest from our audience.
• 0:59
  Speaker 1: Jay Hubbs, who is the Vice President of Marketing, innovation and Analytics at Best Western, joins us today to discuss their recent journey in the world of co-branded credit cards.
• 1:09
  Speaker 1: Jay, welcome back.
• 1:11
  Speaker 1: Great to see you.
• 1:12
  Speaker 2: How are you, Mark?
• 1:13
  Speaker 2: Good to see you again.
• 1:14
  Speaker 1: So it looks like you've been quite busy recently.
• 1:16
  Speaker 1: First off, for those who may not know, can you give us a short introduction to Best Western and tell us about your role within the organization and maybe your experience in customer loyalty?
• 1:25
  Speaker 1: That'd be great to know.
• 1:26
  Speaker 2: Yeah, so I appreciate the sort of tee up question because when you say Best Western, best Western is part of one of the brands under the B2H Hotels portfolio, so sometimes we still say Best Western, but we also say B2H Hotels.
• 1:41
  Speaker 2: So when I talk about B2H Hotels, it's a global enterprise.
• 1:45
  Speaker 2: We have a portfolio of 18 diverse brands, including Best Western and Best Western Plus and Best Western Premier, but also World Hotels, the Surestay Hotels.
• 1:56
  Speaker 2: We have a number of collections.
• 1:57
  Speaker 2: We're actually one of only two global hotel companies with brands that span all the way from luxury to economy.
• 2:05
  Speaker 2: We have, under all of our brands, almost 4,300 properties in more than 100 countries and territories and really Mark.
• 2:15
  Speaker 2: Our vision here at BWH Hotels is simple we want to inspire travel through unique experiences, and I know we're here today to talk about our co-branded credit card, so we are excited about this co-branded credit card.
• 2:24
  Speaker 2: So we are excited about this co-branded credit card.
• 2:26
  Speaker 2: It's available here in the United States and helping, again, people inspire travel through those unique experiences.
• 2:33
  Speaker 1: Recently, Best Western announced the launch of two new co-branded credit cards.
• 2:37
  Speaker 1: Can you tell us more about the partnership with Mercury Financial and how the new offering fits into Best Western's overall customer loyalty and customer engagement strategy?
• 2:47
  Speaker 2: Yeah, just a few weeks ago to your point, we launched two new Best Western Rewards Visa signature credit cards I got to make sure I can say that effectively with Mercury Financial as our partner.
• 2:58
  Speaker 2: So we're excited that this will make travel experiences more possible for our cardholders and our members, and our partnership combines the expertise of Mercury Financial and Visa with our award-winning Best Western Rewards loyalty program, which, as I think you know, we now have more than 60 million members in the program worldwide With Mercury Financial.
• 3:21
  Speaker 2: We're thrilled to partner with them because it's a company that we know is committed and passionate about their customers, as we are about our guests, kind of like you are about loyalty.
• 3:29
  Speaker 2: And it transitions also to the Visa network, which enhances our co-branded credit card offerings, which we're excited about providing significant value to our guests and cardholders.
• 3:41
  Speaker 2: So what we went to market with now is two options guests and cardholders.
• 3:47
  Speaker 2: So what we went to market with now is two options there's the premium BWR Visa signature card that does have an annual fee, and then a no fee option BWR Visa signature card and both cards feature benefits, competitive rates and exceptional cardholder services through Mercury and Visa.
• 4:00
  Speaker 2: And so this program we're really excited because it's designed to boost the cardholder engagement, strengthen loyalty to not just Best Western and Best Western Rewards, to our broader BWH Hotels portfolio and, obviously, encourage deeper engagement to our BWR program.
• 4:17
  Speaker 1: These new co-branded cards offer various benefits, including higher points on everyday spending and stays.
• 4:24
  Speaker 1: How do you see these benefits enhancing the overall customer experience for frequent travelers and the occasional guests as well?
• 4:32
  Speaker 2: Yeah, let's just focus on the benefits piece.
• 4:35
  Speaker 2: First, because it is offering higher points on everyday spending and stays.
• 4:39
  Speaker 2: For those of you that are in the credit card space, how do you get your card to be top of wallet?
• 4:45
  Speaker 2: And knowing that there's a lot of competition out there in the credit card space, we've made some great enhancements to it.
• 4:51
  Speaker 2: First of all, members get 2x BWR points for every dollar spent.
• 4:56
  Speaker 2: We've now enhanced the no fee card with a 4x multiplier on any stays at our hotels, and then that's with a noX multiplier on any stays at our hotels, and then that's with a no-fee card.
• 5:06
  Speaker 2: And again, the premium card I talked about actually gives a 10X points for stays.
• 5:11
  Speaker 2: So a lot more benefits, not just for the everyday spend but also for stays at any one of our properties.
• 5:16
  Speaker 2: Additionally, premium card holders get 4X points on gas and grocery purchases, which again is designed to drive loyalty, increase usage.
• 5:25
  Speaker 2: Try to get the card sort of top of wallet, if you will.
• 5:28
  Speaker 2: Additionally, we've added a new anniversary benefit for the premium cardholders, who now earn up to two free nights at any BWH hotel in the US, canada or the Caribbean when they renew and spend $10,000 annually.
• 5:42
  Speaker 2: So it's a great perk that really adds value for that $89 annual fee.
• 5:46
  Speaker 2: So we're excited.
• 5:47
  Speaker 2: These cards and their benefits will enhance the experience for all rewards members.
• 5:51
  Speaker 2: Whether they're frequently on the road or saving their travels for special occasions or not staying with super frequently, they'll be earning significant points for those future stays and the points they can use for a free night at a hotel in the future.
• 6:07
  Speaker 1: As part of the Best Western's loyalty program, Best Western Rewards, the points never expire, which is a unique benefit to your members.
• 6:15
  Speaker 1: How do you think this feature, alongside the new credit card, will contribute to customer loyalty and also encourage more frequent stays?
• 6:23
  Speaker 2: Mark, that's a great question, because we are I believe we're very unique, especially in the hospitality space, with having our points never expire.
• 6:34
  Speaker 2: We've had that, I think, since inception.
• 6:36
  Speaker 2: It's designed to create customer loyalty and satisfaction from both our frequent and occasional travelers.
• 6:42
  Speaker 2: This feature encourages a member to accumulate points without the pressure of expiration or I need to go, stay there again or use the brand again, so that earned value stays with the cardholder or the member, giving them peace of mind.
• 7:00
  Speaker 2: And we know that plans can change at the last minute or trips can be booked well in advance and our program takes that into account.
• 7:06
  Speaker 2: Additionally, a couple of years ago we launched Pay With Points program so that allowed members who have not accumulated a whole lot of points for.
• 7:10
  Speaker 2: A couple of years ago we launched pay with points program so that allowed members who have not accumulated a whole lot of points for a free night's day the opportunity to redeem the points they have for discount off the room rate at BWH hotels across US and Canada, as well as select hotels worldwide, so that, in addition to the points not expiring, gives our BWR members the opportunity to accumulate those points and if they're traveling or then not traveling, and the points accumulate, you know there's still the opportunity to redeem them for again using pay with points, to use them for a free night or other redemption options that we have out there.
• 7:46
  Speaker 1: You mentioned that Best Western is excited to offer a credit solution that aligns with your customers' evolving needs.
• 7:52
  Speaker 1: How?
• 7:53
  Speaker 1: Have you seen your customers' needs and preferences changing, and how do these trends influence the strategy behind this new co-brand credit card launch?
• 8:02
  Speaker 2: Yeah, that's a great question, Mark, because we have really recommitted to listening to our customers' needs and understanding what we need to support them with and ensure we're providing options, solutions and products to cater to their traveling preferences.
• 8:19
  Speaker 2: So that was one thing that we looked at when we selected Mercury Financial and Visa to offer this new credit opportunity designed specifically for our rewards members.
• 8:28
  Speaker 2: The partnership, as I mentioned before, offers a variety of credit card options no fee and a fee card and it's really designed to meet the diverse financial needs of members that have a wider range of credit backgrounds.
• 8:42
  Speaker 2: It aims to provide greater flexibility and earning potential, which we're really hoping makes Best Western or BWH Hotels an even more attractive choice for travelers.
• 8:54
  Speaker 2: And when we look at what the future trends are in travel, one example we've seen recently is a significant growth in blended travel or leisure.
• 9:04
  Speaker 2: We've talked about that for several years, this increased demand.
• 9:07
  Speaker 2: We're seeing guests that are combining business trips with leisure travel, which is evidenced by longer stays or stays over shoulder dates, or stays that start in the week and then blend to the weekend, and we're hoping that then the credit card program will allow those commercial travelers or business travelers to be able to quickly accumulate points, allow them to extend business trips and then use those points to experience a destination stay.
• 9:31
  Speaker 2: So staying somewhere for business and then turning around and using those points for a long weekend somewhere.
• 9:41
  Speaker 1: It's a crowded credit card market for co-branded cards, as you know, especially among travel and hospitality brands.
• 9:48
  Speaker 1: How do you believe Best Western's co-branded credit card offerings stand out from the competition, especially in terms of the reward structure and the cardholder experience?
• 9:58
  Speaker 2: Yeah, the exciting thing about this program it's offering a full spectrum of credit opportunities using a single issuer which, to be honest, mark, is very unique in the travel and hospitality industry and we're excited that's going to help us stand out from the competition.
• 10:13
  Speaker 2: Through our customer research, we recognize that there's a segment of travelers who really don't have the access to the benefits of a travel rewards card.
• 10:21
  Speaker 2: We wanted to provide that opportunity.
• 10:22
  Speaker 2: You watch a bunch of football games or watch a lot of TV.
• 10:26
  Speaker 2: You see there's a lot of travel-focused credit cards in the market which, at the end of the day, are really not available to many consumers.
• 10:33
  Speaker 2: So we're excited to offer a card that gives those consumers access to credit and earning bonus points at our hotels.
• 10:38
  Speaker 2: Coupled with that strong value proposition of 2x points for every dollar spent, the new earning accelerators with gas and grocery spend and the anniversary bonus of up to two free nights and the premium card.
• 10:50
  Speaker 2: We're hoping that these two cards will help make us a leader in what is, as you pointed out, a really crowded travel co-brand market.
• 10:59
  Speaker 1: Looking ahead, what future enhancements can we expect to see, in terms of partnerships or member benefits to the Best Western Rewards program to meet evolving needs of travelers?
• 11:10
  Speaker 2: Yeah, I know you're trying to get me to spill some secrets here, mark, but listen, we're looking to grow our partnerships and benefits for our loyalty program.
• 11:18
  Speaker 2: We're excited to have conversations with other brands that our customers love to see how we can connect and work together to provide our loyalty members with exclusive, helpful benefits.
• 11:27
  Speaker 2: We're also looking for ways to utilize technology to make the loyalty program more seamless to use and, to be honest, you know we love being part of Loyalty360, where we get to share best practices across industries and connect with brands that we may want to partner with in the future.
• 11:42
  Speaker 1: How do you envision loyalty programs evolving across travel and hospitality, and what trends do you think will be important as loyalty programs continue to involve?
• 11:53
  Speaker 2: So there's a couple of components to that I would say.
• 11:55
  Speaker 2: You know you can call it accessibility, you can call it approachability, you can call it, you know, welcoming.
• 12:02
  Speaker 2: We are looking at how our loyalty program can evolve and arguably be the most welcoming out there.
• 12:11
  Speaker 2: You know it's a big focus for us as a program as we're looking to evolve it.
• 12:16
  Speaker 2: But at the end of the day, we're not the only ones that are looking at personalization.
• 12:20
  Speaker 2: Right, it's incredibly important for loyalty programs, not just for retention but also for acquisition.
• 12:25
  Speaker 2: You know, applying that to the loyalty programs, understanding you know what Mark needs as a traveler versus what I need or someone else needs.
• 12:34
  Speaker 2: And to that end too, I think we're seeing a trend that customers are appreciating those micro moments for loyalty versus waiting for a big payoff.
• 12:42
  Speaker 2: What are the elements of surprise and delight that you can offer to a guest and as you learn more about them and connect with them on a relationship level rather than a transactional level, for example, like cashing in small points to get a reward or, again, like a surprise and delight.
• 13:01
  Speaker 2: So there's that and there's also kind of like big milestones and if you have someone who is a brand aficionado and wants to share your birthday or anniversary or or thank them for staying at a X number of hotels or staying with a brand for a number of years.
• 13:17
  Speaker 2: There's lots of opportunities, I think, in the space we are a a industry where people are excited largely to do now, you know, business travel, maybe not so glamorous, but when you turn that around to points that you can take, take your family on, or again those micro moments we were just on a call right before we got.
• 13:36
  Speaker 2: We got on here, mark, and talked about, you know, people that are staying extended, stay at hotels and it's a long time right, and it's like, you know, giving them a thank you for staying at a hotel for 10 nights, because that's that's hard, that's hard work.
• 13:48
  Speaker 2: So that kind of personalization, I think, is something that we and a lot of other brands are looking at in the travel and hospitality space.
• 13:55
  Speaker 1: And last question I have, Jay, is how can Loyalty360 further support Best Western in helping you enhance your customer loyalty strategies?
• 14:04
  Speaker 2: Yeah, I touched on this a little bit before but honestly, we love being part of the program and what you and the rest of the team are doing with Loyalty360.
• 14:11
  Speaker 2: Sharing best practices, hearing what other brands and other industries are doing there's a lot of learning there and then connecting with brands that we may want to partner with in the future or technology partners that we need to look at integrating into our systems.
• 14:28
  Speaker 2: You know we're a unique company with our tech stack but, you know, looking at how we augment that through partnerships that we think are going to make sense for again, for our customers your point and we love leaning into the Loyalty360 network from that standpoint.
• 14:47
  Speaker 1: Well, thank you very much.
• 14:47
  Speaker 1: Now we have our quick fire question segment.
• 14:50
  Speaker 1: We like to keep these to one word or a short phrase.
• 14:53
  Speaker 1: The first question we have is what word or short phrase do you use to inspire others?
• 14:59
  Speaker 2: Be the change you want to see in the world.
• 15:01
  Speaker 1: What is your least favorite word that others use?
• 15:03
  Speaker 2: Like.
• 15:04
  Speaker 1: What excites you at work?
• 15:05
  Speaker 2: Working on our loyalty program.
• 15:07
  Speaker 1: What do you find tiresome at home or at work?
• 15:10
  Speaker 2: At times working on a loyalty program.
• 15:11
  Speaker 2: It's a lot of work, but it's great, it's fun.
• 15:16
  Speaker 1: What's your favorite travel destination?
• 15:17
  Speaker 1: I'm a big skier, so ski destinations are high on my list.
• 15:24
  Speaker 1: Is there a book that you've read, or may read often, that you'd like to recommend to colleagues I'd say anything by Adam Grant.
• 15:28
  Speaker 1: What profession, other than the one you currently have, would you like to attempt?
• 15:32
  Speaker 2: I'd like to be a cast member on SNL.
• 15:35
  Speaker 1: What do you enjoy doing that you often don't get the opportunity to do?
• 15:39
  Speaker 2: Oh, that's an easy one.
• 15:40
  Speaker 2: I play golf.
• 15:41
  Speaker 1: Who inspired you to become the person that you are today?
• 15:43
  Speaker 2: Oh, I'd say my mom.
• 15:44
  Speaker 1: And last question, Jay how do you want to be remembered by your friends and family?
• 15:48
  Speaker 2: I'd say someone who is genuine and hopefully made them laugh once or twice.
• 15:53
  Speaker 1: Jay, thank you very much for taking the time to speak with us today.
• 15:55
  Speaker 1: It was great reconnecting with you.
• 15:56
  Speaker 1: It's always great to see you.
• 15:57
  Speaker 1: We appreciate you giving us an update on the Best Western Reward Program and looking forward to hearing more in the program in the coming years.
• 16:04
  Speaker 1: So thank you very much.
• 16:05
  Speaker 2: Always good to see you, mark, thank you.
• 16:06
  Speaker 1: Thanks to everyone else for taking the time to listen today.
• 16:08
  Speaker 1: Make sure you join us back for additional episodes of our Leaders in Customer Loyalty series soon.
• 16:12
  Speaker 1: Until then, have a wonderful day.