Taj group of hotels plans customer loyalty programmes with international hotels

To get rid from commission-raking travel agencies, the Taj group of hotels has planned to sign pacts with international chains of hotels, so that their customer loyalty programmes can be made good use of to acquire more clients directly. The pacts and deals would be finalised in the current financial year.

As of now, travel portals eat into the profit margins of hotel chains, which is what has forced them to look for such alternatives. Online agents make up for as much as 20% of the bookings done in hotel chains, which constitute a major part of their business.

"Loyalty can be a silver bullet for us as the cost of customer acquisition in this channel is very low," said Chinmai Sharma, chief revenue officer at Taj Hotels Resorts & Palaces. "So the idea of a strategic partnership in this space with like-minded hotel brands in different geographies will give more earn and burn capabilities to the members."

As per these pacts, loyalty members of the Taj group can earn points, which they can later redeem in partner hotels around the world. These loyalty programmes can drive guests away from online travel agents, so that they book directly from hotel websites.

It was only last year that the Taj group had launched a revamped loyalty programme that had new features and enhancements on hotel stays, food and beverages and spa. Since then, the revenue from the loyalty programme and the enrolments has seen close to 60% growth.

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