Analysis of Customer Loyalty Schemes and Cards in Hospitality Sector

This research project examines customer loyalty schemes within the hospitality sector, using Bourne Leisure as a case study. The introduction highlights the industry's focus on customer satisfaction and retention, emphasizing the importance of loyalty programs. The aim is to analyze customer loyalty schemes and cards, specifically focusing on Bourne Leisure. Objectives include understanding the importance of such schemes, identifying integration strategies, ascertaining challenges, and recommending solutions. The literature review explores the importance of customer loyalty schemes, strategies for integration (discounts, rewards, referrals, partnerships, feedback), and challenges in implementation (defining objectives, identifying loyal customers, financial constraints, customer engagement, and differentiation). The research methodology employs an inductive approach using both primary (questionnaires) and secondary data. Thematic analysis will be used for data analysis, and ethical considerations are addressed through declaration forms. The research aims to provide insights into customer loyalty strategies and challenges within the hospitality industry, offering recommendations for improvement.

RESEARCH PROJECT
PROPOSE (RA STE)

Table of Contents
INTRODUCTION...........................................................................................................................3
Background..................................................................................................................................3
Aim..............................................................................................................................................3
Objectives....................................................................................................................................3
Rationale......................................................................................................................................3
MAIN BODY...................................................................................................................................4
Literature Review.........................................................................................................................4
Research Methodology................................................................................................................4
REFERENCES................................................................................................................................1

INTRODUCTION
Background
Customer satisfaction has always been the top priority in the hospitality industry where the
companies are regularly trying to increase the satisfaction level of their consumers. This is done
to increase the retention of the existing consumers and attract additional customers to the
company (. Sota Chaudhry and Srivastava, 2019). Bourne Leisure Holdings Ltd is a private
British company owning a number of subsidiaries that operate in the hospitality industry where
different countries operate in the United Kingdom. The holding is a major part of the entire
hospitality industry operating in UK and impacts the manner in which they work. The rising need
and trend to retain the customers in the company has led to the development of various customer
retention techniques and these are different for different organization based on their operating
level and the scale at which they work (Dewnarain, Ramkissoon and Mavondo, 2019). In the
current research, such customer loyalty and retention schemes will be analysed specifically in
context of Bourne Leisure and these will be then evaluated in terms of what are the potential
challenges in implementation of such loyalty schemes and the solutions that can be developed in
order to minimise the challenges that the Bourne Leisure Company faces.
Aim
A study on analysing the customer loyalty schemes and cards in hospitality sector. A case study
on Bourne Leisure Ltd.
Objectives
 To understand the emerging importance of customer loyalty schemes in hospitality
sector.
 To identify the strategies used for integrating customer loyalty schemes in Bourne
Leisure.
 To ascertain the challenges in application of customer loyalty schemes in the hospitality
sector.
 To recommend appropriate solutions based on challenges identified.
Rationale
In the current researcher, the researcher will discuss the issue of customer loyalty schemes that
the Bourne Leisure company is using for their existing customers and different challenges that
the company faces in implementation of such leisure schemes in the company. This will then

lead to the researcher masking appropriate recommendation that company can adopt in order to
minimize the challenges. This research topic has been selected because the industry today works
on the principle of “Customer is the King” and therefore it is necessary to ensure that the loyal
customers of the company or organization are adequately rewarded so that they remain satisfied.
It is necessary to conduct this researcher because it will highlight how well aware are the
companies regarding the taste and preference of the consumers and what actions are they
adopting to retail the loyal consumers in the company. The current researcher will highlight that
what are the strategies that Bourne Leisure is using for the customer loyalty scheme and how are
they retaining the customers in the company (Quinlan and et.al., 2019). The research will also
highlight that what are the different challenges that the company faces in the developing and
implementing the loyalty schemes for the consumers thus making appropriate recommendations.
For this the researcher will conduct an appropriate research and use different analytical tools so
that the research can be conducted effectively.
MAIN BODY
Literature Review
Importance of customer loyalty schemes in hospitality sector.
It has been stated by Hossain, Kibria and Farhana, (2017) that increase in customer
loyalty schemes by 5% could lead to increase of more than 25% in profits, per customer. In a
hospitality industry there is nothing that could beat customer retention and loyalty for business
continuity. Companies are using different loyalty schemes for attracting and retaining customers.
These schemes are building customer loyalty for the business. The schemes are helping
companies to boost their growth. They are using these schemes as their traditional models for
expanding the company. Loyalty programs attracts higher inflow of economic benefits than the
outflow. When customers get something extra or are given special treatments and preference on
their visits they tend they represent better picture of company in society. This helps in building
reputation of the company in market. Schemes and enticing awards in products and services
provided by the company helps in increasing the revenues and sales. It helps the companies to
even know about the current consumer tastes and preferences that helps them to improvise its
products and services accordingly.
Customer loyalty schemes are very important for retaining customers in a hospitality
industry. In competitive markets customers could make snap decision for switching over from

one supplier or service provider. Customer loyalty schemes could make significant differences.
Company like Starbucks uses scheme called My Starbucks Reward that has made significant
contributions to the coffee house in profitability and growth.
Strategies for integrating the customer loyalty schemes in Bourne Leisure.
There are number of strategies used by marketers and companies for integrating the
customer loyalty for their business. In view of Vilkaitė-Vaitonė and Papšienė, (2016) strategies
that could be adopted include offering discounts over the products and services that are
purchased regularly by the customer. Discounts is the most effective strategy for attracting
customers. The discounts to old customers and providing them services at concessional rates.
There are various types of discounts that could be offered by Bourne Leisure. Rewarding
customers by different schemes helps to attract new customers. Rewards include having schemes
winning trips to abroad on gift vouchers. They can also have selected rewards schemes like
surprises and gifts. Encouraging referrals like referring friend is an effective method of
rewarding existing customers.
Partnering with other companies helps in exposing the business by giving them more
options. Partnering makes the services of company available through various sources. Like
corporate and other offices may have direct contracts with Bourne Leisure for providing their
clients the best services. This will help in building a new customers base and loyalty through
these partnerships. Other effective and trending strategy includes taking feedbacks of customers
visiting the Leisure. Feedbacks gives customers the feeling that their opinions are considered and
are valued by the company. All these strategies could help in integrating the customer loyalty.
Challenges in application of customer loyalty scheme in hospitality sector.
Customer loyalty schemes along with the benefits that it brings to company have various
problems in application. Loyalty objective have to be defined for bringing the schemes. It is
difficult to identify the profiles of loyal customers as all the customers are not same. It involves
expenses for rewarding and discounting the customers. All company may not have the financial
state of providing discounts. The measurement of loyalty objectives is difficult task for the
business. Customer engagement is a big factor affecting application of schemes. Lack of
differentiations as it is difficult to attract gain attention and to retain customers of the business.

Rybaczewska and Sparks, ( 2019) states these as the challenges in affecting the application of
loyalty schemes.
Research Methodology
Research methodology involves a range of tools and techniques that the researcher can use for
conducting their research:
Research Approach: There are two types of research approach inductive and deductive.
Inductive Approach are used in qualitative research where different theories are analysed to draw
a particular conclusion and deductive approach signifies the quantitative research where the facts
and figures are analysed to develop general theories. In the current research, researcher will use
Inductive Approach because a qualitative research will be undertaken.
Data Collection: Collection of data can be done using primary or secondary sources. In this
research, researcher will be using both primary and secondary sources (Silverman, 2016).
Researcher will use questionnaire method to collect data from primary sources and secondary
data will be collected by reviewing the previous articles and journal that have been published on
this topic. This will help researcher in gathering significant data for conducting a meaningful and
relevant research.
Sampling: Sampling involves selection of a few respondents out of the entire population and this
can be done in a purposive sampling or non-purposive sampling manner. Under purposive
sampling, sample is selected on the basis of the pre formulated criteria and under non-purposive
sampling, the sample is selected on the basis of random selection and there is no pre formulated
criteria. In the current research, researcher will select purposive sampling method under which
30 employees of Bourne Leisure Ltd. will be selected for conducting research.
Data Analysis: The technique of data analysis is different for qualitative and quantitative
research method (Flick, 2015). In order to analyse qualitative data, the Thematic Analysis, can be
done where different charts, figures and graphs are used to analyse the data and interpret it
accordingly. For quantitative analysis, tools like SPSS are used and the numerical data is
analysed accordingly. In the current research, researcher will use, the thematic analysis technique
where the collected facts will be interpreted in the form of pie charts, bar graphs and figures.
Ethical Consideration: Under ethical consideration, the researcher is expected to attach a
declaration form where the declaration is made that the work that has been done in the research

is their own work and wherever external references have been taken only after the approval of
the author giving him appropriate credit (Kumar, 2019.). The researcher will also make the
respondents file a declaration form where they will declare that the answers that they have given
in their sample are their own, and they have not been biased or forced in any manner by the
researcher to favour one option over another.

REFERENCES
Books and journals
Kumar, R., 2019. Research methodology: A step-by-step guide for beginners. Sage Publications
Limited.
Flick, U., 2015. Introducing research methodology: A beginner's guide to doing a research
project. Sage.
Silverman, D. ed., 2016. Qualitative research. Sage.
Quinlan, C. and et.al., 2019. Business research methods. South Western Cengage.
Sota, S., Chaudhry, H. and Srivastava, M.K., 2019. Customer relationship management research
in hospitality industry: a review and classification. Journal of Hospitality Marketing &
Management, pp.1-26.
Dewnarain, S., Ramkissoon, H. and Mavondo, F., 2019. Social customer relationship
management in the hospitality industry. Journal of Hospitality, 1(1). pp.1-14.
Hossain, M.Z., Kibria, H. and Farhana, S., 2017. Do Customer Loyalty Programs Really Work in
Airlines Business?—A Study on Air Berlin. Journal of Service Science and
Management. 10(04). p.360.
Vilkaitė-Vaitonė, N. and Papšienė, P., 2016. Influence of customer loyalty program on
organizational performance: A case of airline industry. Inžinerinė ekonomika. pp.109-116.
Rybaczewska, M. and Sparks, L., 2019. Place marketing and place based loyalty
schemes. Journal of Enterprising Communities: People and Places in the Global
Economy.
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