Success in business depends on obtaining repeat customers by proactively driving loyalty and that’s exactly how Hospitality Marketing Concepts (HMC) began. This week, HMC, the world’s leading provider of outsourced CRM-driven database management and loyalty marketing programs for premium hotel organizations, proudly celebrates 25 years of providing loyalty programs to premier hotels and their guests.
Headquartered in Newport Beach, California, HMC was founded in 1988 by three brothers: Mokhtar, Marwan and Fadi Ramadan. Combining their collective marketing and database management experience, appreciation for upscale hotel services, and understanding of the hospitality market, the brothers recognized the opportunity inherent in offering hotel membership and loyalty programs. Due to their international experience, the Ramadans were particularly focused on expanding HMC globally.
“Living side by side with traditional points driven loyalty programs, paid membership loyalty programs are a proven, timeless solution for hotels looking to generate incremental revenue from the SME and professional market segments,” said Mokhtar Ramadan, CEO of HMC. “HMC’s membership programs create a local database of frequent, loyal guests who generate substantial increases across all hotel revenue areas. The local database often becomes the largest single source of revenue, generating revenue ranging from US$500K to over US$10 million per year, per hotel.”
HMC has grown into a full service loyalty solution provider, offering a complete spectrum of loyalty products including: paid membership loyalty programs, traditional points-based loyalty programs, recognition programs, booker’s loyalty programs, meetings & incentive platforms, hybrid loyalty programs, F&B membership loyalty models, room incentive programs, and corporate incentive programs.
After establishing HMC in the United States and Canada, the founders immediately expanded the company’s international efforts the following year by focusing on European countries, followed by Latin America and eventually Asia-Pacific in 1992. Currently, HMC has 1,300 top hotel clients, operates in 62 countries on every continent, and has permanent offices in every region in the world. In less than 10 years, HMC became the world’s largest provider of paid loyalty programs with revenue exceeding all other competitors combined.
“Within the first five years, we recognized that we needed to take on new challenges and stay abreast of the ever-changing hospitality market,” continued Mr. Ramadan. “HMC revolutionized the way paid loyalty programs work by expanding from single hotels in single markets to multiple of hotels in regional or international markets. We also consistently anticipate and solve our client hotels’ needs through detail-oriented personalized service, the development of state-of-the-art Customer Relationship Management (CRM) systems, and proprietary operational technologies. This is why HMC was the first company to successfully make hotel paid loyalty programs a productive and profitable venture.”
As HMC’s network expanded, it recognized the need for a special program that offered member benefits at hotels around the world. The result, launched in 1996, was CLUBHOTEL (http://www.clubhotel.com), a branded membership program that offers reciprocal benefits to members at an expanding network of independent and major hotel brands hotels, including most of HMC’s hotel clients. CLUBHOTEL includes 725 participating hotels and is currently accepted in 53 countries and over 430 cities worldwide, making it the most extensive branded paid hotel membership program to date.
HMC then went on to develop a revolutionary frequency guest loyalty program for independent hotel groups similar to those of global airline alliances, such as OneWorld and Star Alliance. In 2008, the VOILÀ Hotel Rewards program (http:// voilahotels.com) was launched. VOILÀ unites independent four- and five-star hotel groups under one global and brand-neutral loyalty program. Many of the hotel groups, which operate high-end boutiques in their local markets, lack the infrastructure to launch their own cost-effective loyalty programs or brand themselves under a global umbrella. VOILÀ provides them with international reach and maintaining operational independence. VOILÀ is now available at more than 250 hotels in 24 countries worldwide.
“Today, HMC offers comprehensive management, marketing, and branding of loyalty programs that make a meaningful difference to hotels,” concluded Mr. Ramadan. “We pride ourselves on providing world-class customer service to our client hotels that never wavers. What started 25 years ago has steadily grown into a business far exceeding any of our expectations. HMC is the world’s leading provider of premium loyalty programs to more than 1,300 hotels in 62 countries worldwide. We currently manage a growing network of loyal professionals exceeding 1 million members. Our legacy of breakthroughs and innovations has us very much looking forward to the next 25 years.”
About Hospitality Marketing Concepts
Headquartered in Newport Beach, Southern California, HMC (http://HMCloyalty.com), HMC is the world’s leading provider of outsourced database management and loyalty marketing programmes for premium hotel organizations. Our core competencies are the creation, implementation, management and marketing of custom-made programmes designed to drive incremental revenue and profits into each partner hotel.
HMC provides a turnkey solution to hotel clients, from the initial concept and design, to IT deployment, management and ongoing marketing and customer service. HMC serves two high-end clients – premier hotels and the members who subscribe to the hotel loyalty programs. The objective of HMC’s loyalty solutions is to help hotels increase bottom-line profit, through the recruitment and retention of repeat customers and lowering the cost of business via direct e-commerce channels. Member acquisition is primarily through outbound telesales; target members are managers and owners of small to medium-size business, professionals, and affluent lifestyle individuals.
HMC also operates two proprietary global hotel loyalty networks: CLUBHOTEL and VOILÀ Hotel Rewards, further improving our clients business opportunities through the world. CLUBHOTEL (http://clubhotel.com) boasts the largest variety of brands and independent properties around the world. The program is currently offered at over 720 luxury hotels in 52 countries and in more than 447 cities. Established in 1996, CLUBHOTEL has generated staggering results, representing tens of thousands of incremental room nights for participating hotels each year. VOILÀ (www.voilahotels.com) is the world’s number one loyalty program that unites a network of more than 250 four-and five-star independent hotels and luxury brands. VOILÀ’s points-based frequency guest program provides recognition benefits and room redemption opportunities at participating network hotels. But unlike big chain programs, VOILÀ enables independent hotel groups to stay independent and maintain their unique qualities.
A selection of HMC’s clients includes InterContinental Hotels, Hilton Hotels, Radisson Hotels, Mövenpick Hotels, Fairmont Hotels, Starwood Hotels, Ritz-Carlton Hotels, Shangri-La Hotels, Mandarin Oriental Hotels, Husa Hoteles, Tivoli Hotels, Hotéis Deville, Amari Hotels and Swissôtel Hotels. HMC is a global company with offices in more than 50 countries including Italy, France, Germany, Spain, Poland, Portugal, Australia, Singapore, Hong Kong, China, UAE, Egypt, Venezuela, Brazil, Canada, United Kingdom and United States.