by
Caryl Helsel
Jun 1, 2024

The Rise of Exclusive Membership Programs: Transforming the Hospitality Landscape

In today’s rapidly evolving hospitality industry, hotels are continually seeking new and innovative ways to enhance guest experiences and drive loyalty. One trend that has gained significant traction in this space is private member clubs within hotels. While they may have been around for some time, they’re becoming more prevalent, specifically with the introduction of more robust member management platforms and integrations

The Rise of Exclusive Membership Programs: Transforming the Hospitality Landscape

by
Caryl Helsel
Jun 1, 2024
Sales
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In today’s rapidly evolving hospitality industry, hotels are continually seeking new and innovative ways to enhance guest experiences and drive loyalty. One trend that has gained significant traction in this space is private member clubs within hotels. While they may have been around for some time, they’re becoming more prevalent, specifically with the introduction of more robust member management platforms and integrations

WHETHER MEMBERS FREQUENT THE CLUB during work or personal travels, or hail from the local community, the appeal of membership programs lies in their ability to provide an intimate environment where members can foster meaningful connections, be recognized —but in a private sense —and enjoy exclusive privileges not available to the general public.

The club-like experience goes beyond a hotel loyalty program of traditional points redemptions, discounts, or upgrades. It creates an immersive and unforgettable journey through luxury, privacy, and experiential hospitality. However, at the core of these member clubs lies the technology. Read on to learn the importance of technology in member management and how to select the right technology partner.

Revolutionizing Membership Through Technology

Technology plays a pivotal role in revolutionizing private member clubs within hotels, shaping the way these exclusive experiences are curated and accessed. What sets private member programs apart is their integration with hotel management systems, enabling members to enjoy a seamless experience. Leading hospitality technology providers like Agilysys, Peoplevine, Club Essentials, and Jonas Club, to name a few, have played a pivotal role in powering these programs. They offer robust solutions that streamline operations, enhance guest engagement, and drive revenue growth.

As hotels embark on the journey of establishing or refining their private member clubs, they must navigate myriad options and considerations when selecting a member management provider. This consideration phase is essential to ensure that hotels choose a technology partner that not only meets their current needs, but also aligns with their long-term vision, values, and goals.

By carefully evaluating key factors such as integration capabilities, customization options, scalability, data security, analytics, member communication, and support, hotels can make informed decisions that lay the foundation for a successful and sustainable membership program.

Selecting a Member Management Provider: Top Considerations

Integration capabilities; current and future: When selecting a member management provider, the platforms it integrates with are paramount. First, look for a provider that offers seamless integration with your existing technology stack.

Also consider what that ecosystem will look like in two to three years. Create journey maps for your members and employees based on the current and future vision. Each map should represent important elements such as current pain points and how you plan to address them – whether it’s through technology or change management.

Think about what tech system will handle and surface data to the member and employee. When looking at the supported integrations with a member management platform, some top considerations include compatibility with the hotel’s property management system (PMS). This will enable staff to effortlessly recognize member
hotel bookings and surface essential guest data.

Integration with the point of sale (POS) and table management systems is also crucial. This will allow members to conveniently charge purchases to their house account and make dining reservations without friction.

Moreover, seamless integration with spa/wellness and activity booking software streamlines appointment bookings, enhancing the overall member experience and operational efficiency.

By prioritizing providers with robust integration capabilities, hotels can create a unified and streamlined experience for both staff and members, driving satisfaction and loyalty.

Customization options: Every hotel and private member club is unique, so it’s essential to choose a technology provider that offers customization options tailored to your specific needs and future goals. From personalized branding in the member portal and email communications to the creation of unique member tiers and benefits, flexibility is key to meeting your membership’s diverse needs and preferences.

The ability to customize every aspect of the member experience, from the application process all the way to member check-in, fosters deeper engagement and sets hotels and private member clubs apart in the competitive landscape. By prioritizing providers that offer extensive customization options, you can unlock your membership program’s full potential.

Scalability and growth potential: As your membership program expands, you’ll need a technology partner that can grow with your business. Consider those offering scalable solutions that can grow your membership base and evolving business requirements without compromising performance or reliability.

Scalability alone isn’t enough in today’s dynamic hospitality landscape. Innovation is equally important for staying ahead of the curve and being able to meet your members’ evolving needs. Look for providers that prioritize innovation, regularly introducing new features and integrations that enhance the member experience.

When evaluating potential partners, inquire about their recent innovations. Ask questions like, “What innovation are you most proud of in the past six months?” Whether it’s leveraging artificial intelligence, implementing automation to streamline operations, or exploring novel approaches to member engagement, innovative solutions enable hotels to differentiate themselves and deliver the cutting-edge experiences member’s demand.

Data security and compliance: Protecting member data is critical, especially in today’s increasingly regulated environment. Choose a technology partner that adheres to the highest standards of data security and compliance to safeguard sensitive information and maintain trust among your members. Look for providers that prioritize data security and compliance with regulations such as the European Union’s General Data Protection Regulation (GDPR). Ensure the platform has strict data governance practices in place to safeguard member information from unauthorized access or breaches.

Additionally, you must carefully manage user permissions to restrict access to sensitive data and ensure that only authorized personnel can view or modify member information. Some providers offer advanced features like the ability to mask certain member information, particularly for top-tier members, to protect their identity and privacy.

By prioritizing data security and compliance, hotels can instill confidence and demonstrate a commitment to protecting their members’ privacy and confidentiality.

Analytics and reporting capabilities: Robust analytics and reporting tools will provide valuable insights into member behavior, preferences, and spending patterns. Choose a provider that offers advanced analytics capabilities, allowing you to track key performance metrics, measure marketing initiatives success, and make data-driven decisions to optimize member engagement and retention.

The ability to look at reports that show trends and key data that helps make informed decisions about special events, member trends, and expansion opportunities is equally important.

Ongoing support and training: Implementing a new member management system can be complex, so it's essential to select a provider that offers comprehensive support and training services. It’s important to look for a partner that offers proactive support, regular product enhancements, and detailed training resources. Alternatively, hiring a trusted third-party advisor that has a strong relationship with the provider can also help during the implementation phase along with providing ongoing support, management, and system maintenance.

Membership programs present a powerful opportunity for hotels to differentiate themselves in an increasingly competitive market while fostering deeper connections with their most valuable guests and the community.

CARYL HELSEL is the founder and CEO of Dragonfly Strategists.

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