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Norlandia Hotel Group consists of 35 hotels across Norway and Sweden. With a strong emphasis on employee engagement, Norlandia has established itself as one of the leading hotel management companies in the Nordics, known for creating value for both guests and owners. The chain offers a wide range of accommodation options tailored to various needs, from business travelers to families and leisure guests.
Norlandia Hotel Group aimed to enhance guest loyalty, increase direct bookings, and create a seamless guest experience. One significant challenge for many hotels is the high proportion of bookings made through third-party providers (OTAs), which results in higher costs and reduced control over the guest experience. It also limits the ability to build customer loyalty and encourage repeat visits. Additionally, bookings made through third-party providers make it more difficult to gain insights into guest preferences and behaviours, complicating personalized marketing and communication efforts.
To address some of these challenges, several independent hotels within Norlandia Hotel Group integrated Loyco's loyalty program with their existing PMS system and booking engine. This integration allowed Norlandia to offer guests an easy way to register as members and enjoy exclusive benefits, such as bonus points and discounts. The loyalty program has not only strengthened customer loyalty but also made direct booking more attractive, leading to increased repeat visits. According to Loyco’s statistics, 27,4% of guests enrolled in the loyalty program in 2024 were returning customers.
Norlandia Hotel Group consists of 35 hotels, some affiliated with the brand and some with their own branding strategies. At the individual hotels, the loyalty program operates across all hotels and earned bonus points can be used at all the independent hotels. In addition to the bonus points, the loyalty program incentivizes direct bookings by offering exclusive membership benefits, encouraging guests to join. Norlandia provide the following membership benefits:
These membership benefits are a key driver in reducing the proportion of OTA bookings. So far in 2024, OTA bookings represent only 8.1% of all bookings made by members. Moreover, Loyco’s platform offers a user-friendly tool that provides the hotel with valuable insights into customer behavior while also offering critical data on the performance of various hotel services. Since the program’s launch, each hotel has been recruiting approximately 270 new members per month.
Remember to visit Norlandia Hotel Groups website the next time you are travelling in Norway and Sweden and sign up to their membership program to start earning bonus point and access their exclusive offers.
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When designing your loyalty program, segmenting your customer base by membership level should be considered. This will give you insight into the degree of loyalty of each individual customer, while automated communication can be adapted based on which segment they belong to.
Loyco's software is now integrated with HotSoft, a leader in Property Management Systems (PMS) for the hospitality industry. Our integration with HotSoft signifies a significant step forward in streamlining operational processes for hotels and accommodations, while also facilitating easy loyalty building and direct booking for our mutual customers.
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The EU's "Digital Markets Act" is a law from 2022 designed to make markets in the digital sector fairer. Through this law, the EU has now designated Booking.com as a "gatekeeper." This could have a significant impact on the hotel industry today.
