Hotel loyalty reward programs : are they effective in repeat business : case study of Radisson Rewards at Radisson Blu Hotels in Nigeria

Abstract

The hospitality sector in today’s world is experiencing stiff competition and evolving consumer expectations, and this has led to the emergence of loyalty reward programs as strategic tools that can be sued to foster customer retention and drive repeat patronage. This research critically evaluated how effective the Radisson Rewards has been in promoting repeat business at Radison Blu Hotels in Nigeria, a market that is shaped with cultural diversity, economic volatility, and rising digital disruption. The study made use a of mixed-methods research design that combined quantitative data gotten from 87 members of Radisson Rewards and qualitative insights from 10 in-depth interviews with hotel managers and marketing executives. The findings showed that Radisson Rewards offers tangible benefits like point-based incentives, tiered membership privileges, and exclusive discounts, however there are variations with the perceived value of the program across different Nigerian consumers. Factors such as ease of reward redemption, quality of service, program transparency, and cultural relevance were found to heavily influence customer loyalty. There are however challenges facing the loyalty program despite its notable success in improving customer engagement. Some of these challenges include inconsistent service delivery across hotel locations, loyalty fatigue, and stiff competition from Online Travel Agencies (OTAs). However, there are significant opportunities that the study has identified which can help Radisson Blu improve its competitive advantage by localizing its loyalty strategy, embracing digital personalization, and integrating experiential rewards aligned with Nigerian consumer preferences. This thesis contributes to the limited empirical literature on loyalty programs in developing markets and provides actionable insights that hospitality managers who want to optimize reward programs for sustained profitability and customer satisfaction can make use of. The findings underscore the importance of aligning loyalty initiatives with customer expectations and market realities to ensure enduring brand allegiance.