How does a hotel's loyalty program usually benefit the hotel?

A hotel's loyalty program primarily benefits the hotel by encouraging repeat business. These programs are designed to reward customers for their continued patronage, which often leads to increased brand loyalty. When guests perceive that they are receiving valuable rewards for their loyalty, they are more likely to choose the same hotel for future stays rather than exploring competitors. This repeat business is critical for hotels, as maintaining existing customers is generally more cost-effective than acquiring new ones. Additionally, loyal customers often generate positive word-of-mouth, which can attract new guests indirectly.

The other options, while relevant to hotel operations, do not encapsulate the primary benefit of a loyalty program. Lowering guest stay prices could be a result of various promotional strategies but is not a direct benefit of loyalty programs designed to enhance customer retention. Targeting new customers is not typically a focus of loyalty programs, which are primarily aimed at existing guests. Finally, while effective loyalty programs may streamline operations through predictable occupancy, they are not primarily aimed at reducing operational costs.