Diffusion Patterns in Loyalty Programs

Abstract

This chapter aims to assess how effective loyalty programs are in contributing to retaining guests for hotels. The effectiveness is measured by means of a Bass model which allows the measurement of the diffusion patterns of adopters within potential adopters. The data used to perform this model allow the depiction of the effect of geographical localization over a time frame of three years. Results suggest that the loyalty card’s acceptance was measured from the internal and external parameters, based on the concept of diffusion theory. The results indicated a need for innovation of the loyalty program from 2019. Due to the existence of several hotels with different typologies in different countries, a segmentation of clients by nationalities is suggested with a “waterfall” strategy being placed in the hotel chain loyalty program.

Citation

Pimpão, P., Correia, A., Duque, J. and Zorrinho, C. (2016), "Diffusion Patterns in Loyalty Programs", Tourism and Hospitality Management (Advances in Culture, Tourism and Hospitality Research, Vol. 12), Emerald Group Publishing Limited, Leeds, pp. 115-126. https://doi.org/10.1108/S1871-317320160000012009