Analysis of Customer Loyalty Programme Effectiveness in Hotels in Abuja, North Central Nigeria

This study analyses the effectiveness of customer loyalty programmes in hotels in Abuja, North Central Nigeria. Loyalty programmes have emerged as a strategic instrument for driving repeat business, increasing revenue per customer, and reducing marketing acquisition costs. Yet the design and implementation of effective loyalty schemes in Nigerian hotels, where business travel dominates demand, remains relatively unexplored in academic literature. A mixed-method research design is employed with questionnaires administered to 200 hotel guests enrolled in loyalty programmes and structured interviews conducted with marketing managers of 12 hotels across various categories in Abuja. Effectiveness dimensions assessed include programme awareness, ease of point accumulation and redemption, perceived value of rewards, influence on booking decisions, and emotional loyalty outcomes. Findings reveal that 65 percent of respondents are enrolled in at least one hotel loyalty programme, yet active engagement is reported by only 41 percent. Points redemption complexity and limited reward options appropriate for Nigerian tastes are identified as primary barriers to programme engagement. Hotels with bespoke domestic loyalty benefits, including local experience rewards and flexible corporate redemption options, report significantly higher member engagement and repeat booking rates. The study recommends simplification of loyalty programme structures, introduction of locally relevant reward catalogues, digital integration of programmes into hotel mobile apps, and transparent communication of programme benefits to corporate account holders. Keywords: customer loyalty, loyalty programmes, hotel marketing, Abuja, repeat business