Boosting loyalty programs via location based services

VentureBeat, a website that "provide news about innovation for forward-thinking executives" has a story on a hot new virtual intermediary promises to be the bridge between burgeoning location based services and loyalty programs by supplementing rather than competing with the latter. Somewhat aptly named, Topguest, the New York City based start-up aims to connect the loyalty programs hotels and airlines have with various (virtual) check-in services like Foursquare and more quizzically named sites like Gowalla and Loopt. VentureBeat notes that Topguest  "is going for a niche market and making a bet the travel industry will venture into the location space using its product."

The first hotel company to go along with the bet is (as of now) four city based Standard Hotels which promises guests of Topguest a free week at one of its hotels subject to a somewhat imposing travel regimen. The "free" week comes about if a "Topguest" customer checks in on any supported geolocation application and stays in all four Standard hotels (situated in Hollywood, New York, Downtown Los Angeles and Miami Beach) within one week. If the mere thought of such extensive travel induces a severe bout of travelitis there is also the option of getting 25% off the next reservation after 10 check-ins
at any Standard hotel, bar or restaurant. Other location based rewards include spa treatments, boutique
discounts, and cocktails. Topguest has also signed up three
other top loyalty programs as well to be announced later in the summer.

Topguest could be on the cusp of the next big wave for steering loyalty marketing both hotels and airlines besides more quotidian stuff like cappuccinos and even spa treatment. Guests "checking-in" virtually can have highly targeted promos from hotels to steer them in the "right" direction and, very importantly, help make the travel industry become
location-smart and improve the way they communicate with their customers. And with Facebook predicting (somewhat self-servingly) that the entire advertising industry will revolve, before long, around social media, the need to communicate effectively, instantly and continually is paramount to survival both in the short and long run.

Published by

Vijay Dandapani

Co-founder and president of a New York based hotel company for 24 years. Grew the firm to five hotels in Manhattan and also developed a greenfield project at MacArthur airport, New York. Speaker at numerous prestigious forums including Economy Hotels World Asia, Lodging Conference, NYU, Columbia University Real Estate Roundtable, Baruch College's Zicklin School and ALIS. President and ceo of New York City Hotel Association since January 2017.