A pointed strategy

Independence, it turns out, is not the be-all and end-all. Like steel workers or Rolling Stones, a group of hotels is more than the sum of its parts, at least if we are to believe the rhetoric that accompanied the arrival of a revamped iPrefer in August 2013.

Lindsey Ueberroth, president of Preferred Hotel Group, described the new loyalty programme as a "game changer".

"For the first time, one-of-a-kind hotels can maintain their independence and reap the benefits of a points-fuelled global loyalty programme," she added.

iPrefer was first launched in 2006, but until now it has not included a points-based scheme in the vein of those employed by the world's most significant hotel chains. It's too early to say whether Ueberroth's bullish language will translate into something truly groundbreaking, but the implementation of the scheme is interesting in of itself. How do you construct a programme that works for 650 properties around the world (450 of which have so far signed up to the new iPrefer), and how do you convince hotel owners that joining a points-based scheme is a good idea?

Increasing competition "I think they really see the benefits of the programme," says Susan Devine, Preferred Hotel Group's executive vice-president for Europe. "And that's particularly the case for the city hotels; it allows them to compete with the chains.

"I think we all realise that the consumer is increasingly looking for points when they travel on business. They spend a lot of time travelling for work and they'd like to be able to use those points for personal benefits; to get something back when they go on holiday with the family. I think Preferred Hotel Group is the first company that's able to offer a programme of this scale for independent hotels."

It's important, Devine stresses, that owners of independent hotels understand how the scheme can help them to compete with rival chains.

They're fighting for the same dollar, she says, even if the rival properties might seem to offer quite different experiences.

"I think there are a lot of people that stay in chain hotels because it's an easy option and they have a point value," she says. "But they would prefer to stay at a property that is more culturally in tune with the local environment. This scheme gives them a range of unique hotel options - [they're] not cookie-cutter hotels.

Nonetheless, the sheer variety of hotels represented by Preferred Hotel Group (from Ellenborough Park, a country house hotel in Cheltenham, England, to Emporio Acapulco, a beach hotel in Mexico, for example) suggests a one-size-fits-all scheme might not be easy to implement.

Simply unique

The key to iPrefer's points-based structure is its simplicity, says Devine. There are three tiers (silver, gold and platinum) into which a customer falls depending on how often they stay in Preferred Hotel Group properties. Benefits range from free internet to certificates that can be used like money in participating hotels.

"We looked at lots of options when we were designing the scheme," says Devine. "The programme is very simple, and rewarding for the hotel and the consumer. From a consumer's standpoint: they stay in our property, they earn enough points and we reward them with a certificate that can be used like cash at participating hotels.

"At most chain hotels, you get a point that goes towards a stay. In our programme, you receive a certificate you can use as cash - it's even transferrable. That makes it attractive for the consumer. They can redeem the points much faster and don't have to wait for a whole night's stay."

The scheme currently has around 1.3 million members, with Preferred Hotel Group hoping to increase that to two million by next summer. Nonetheless, Devine admits, some hotels are adopting a wait-and-see policy. Around 80% of the group's 185 hotels in Europe are currently signed up.

"There are a few hotels that always want to wait and see how the programme develops," she says. "There is a cost for the programme; it is less than for a chain hotel, but there is a cost." Preferred Hotel Group takes 2.5% of the money generated through the iPrefer room revenue. "The evaluation of being able to support that is a concern for some hotels," she adds.

Nevertheless, Devine is convinced of the scheme's benefits. "It will draw new clientele," she insists. "It will bring in those staying at other properties and looking for points. It's fine to have amenities, benefits, a great customer experience, but we know the chains have an advantage with the consumer who wants to be able to take his family for a holiday, and see benefits [from business travel]."

An inspector calls

A key element of the scheme is ensuring each hotel maintains the required standard. Stringent checks carried out by anonymous guests take place, says Devine, while social media is scanned and logged.

"There are two parts to our quality assurance programme," explains Devine. "One is a full two-day anonymous inspection that we perform every year or 18 months. We provide a report that will qualify the experience from booking to check-out and departure to airport. It's very thorough and helps our hotels to understand the guest experience, which improves efficiencies.

"The second component is online ratings. We provide a system that consolidates social media, collecting comments from 25 different social-media sites. We have an online 24/7 database that allows hotels not only to see that, but also to respond. It's an online tool that helps us to measure not only the experience of one inspector, but of all a hotel's guests. We want all of our hotels to encourage guest write-ups. It's very positive for generating future reservations."

Time will tell whether the scheme reaps rewards, but showcasing the individuality of independent hotels to the largest possible customer base appears to be a promising concept.