Taxonomical challenges of loyalty program management in Malaysian city hotels - Theory and Practice in Hospitality and Tourism Research - page 124

shouldn't be to have a program because everyone
else has it. While two (2) hotels experienced sys-
tems down and listed them as part of their chal-
lenges. These hotels were operated on a worldwide
basis. Having systems down can be disaster to
their daily operation where they have to contact
their hotel chains manually. Thus, maintenance on
the hotel systems besides periodic maintenance is
extremely crucial.
Six items (no. 12-17) were established as indi-
vidual challenges and encountered by each hotel.
Creative decision-making is needed in tackling the
challenges. Hotel A highlighted that member's pri-
vacy was their individual challenges. Some mem-
bers refused to give their particulars such as income
statement. This information is vital in assisting
hoteliers designing appropriate activities for cer-
tain market segmentation in their program. Hotel
B revealed that producing yearly activity state-
ments was part of their loyalty programs manage-
ment challenges. The statements were printed and
mailed to all members. However, some statements
were returned back due to incorrect, not updated
and redundant address. Probably, hard copy yearly
activity statements can be converted to soft copy
version, sending via members email. No printing
process is required in order to reduce hotels loyalty
program cost. Findings also revealed that Hotel C
had problem with software applications introduced
by their hotel program. Members can access hotel
information and anything regarding hotel loyalty
programs through ipads and smart phones. How-
ever, it is a calamitous event especially if it occurs
continuously causing inaccessible connections to
the hotel. It will lead to member's great dissatisfac-
tion. Xie et al (2013) postulated that it's good effort
by the hotel to better communicate, but they need
to look at software maintenance as well. Addition-
ally, Hotel D encountered member's point's expira-
tion. It can induce member's frustrations and this
indirectly will probably change their attitudes or
behaviors towards spending patterns with loyalty
programs. Hotel F practiced no expiration point's
policy whereas the rests of the hotels imposed cer-
tain duration for point's expiration. Perhaps no
expiration point's policy can be an attractive strat-
egy where members have more opportunities to
redeem their reward. Hotel E encountered rewards
confusion by members. Example is their weekend
offers. Though it highlight the term week-ends,
members misperceived it as their special privileges
and it applied on weekdays as well. The miscommu-
nication leads to member's frustration and requires
an efficient service recovery from the hotels. Lastly,
Hotel F experienced members forget to present
card upon check-in for points collection. Though
the process of adding points can be done later, but
some members expressed their anxieties claiming

hotel staffs were not efficient in reminding them
with the program matters. This challenge requires
hotel staffs consistency and be persistent in serving
members of their hotel loyalty programs.

5 CONCLUSION AND FUTURE

RESEARCH

This study suggests that loyalty programs are not a
“one-size-fits-all” solution (Xie et al, 2013). Based
from different and individual challenges encoun-
tered by each hotel, it is therefore strongly recom-
mended that hoteliers review their loyalty programs
rather than just designing another copy-cat loyalty
program. This taxonomy summary is crucial in guid-
ing hoteliers to improve and accelerate their loyalty
programs. Appropriate measures and innovative
approaches can be adopted by these hotels espe-
cially in dealing with the individual challenges. Chal-
lenges can be perceived as opportunities given the
unique and competitive measures taken by hoteliers
in addressing those issues. Hoteliers need to be focus
in conducting their loyalty programs. Failing to do
so will lead them to become a master of none.
This study furnishes the loyalty programs litera-
ture from the perspectives of management or hotel-
iers. Future research is required on investigating
member's perspectives. Winters and Ha (2012) high-
lighted that consumer behaviors with regard to loy-
alty programs are underexplored. Thus, customers'
perspectives may be the best approach to explore
the value of loyalty programs. Moreover, future
research also may concentrate on the lower rated
hotels to give different influences and settings.

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