Hotels often offer reward cards that provide discounts to customers who frequent their establishments. Why do hotels offer these loyalty programs?

Question

Quizplus · Accepted Answer

Hotels offer loyalty programs to increase switching costs for customers, making it less likely for them to switch to a competitor. By offering discounts and rewards to frequent customers, hotels incentivize customers to continue staying with their establishment in order to earn the benefits of the loyalty program. This helps to build customer loyalty and repeat business.

Hotels Often Offer Reward Cards That Provide Discounts to Customers