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Latest Stat and Trends for Restaurants’ Loyalty Programs in the UAE and KSA

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Deliverect

By Naji Haddad, VP – EMEA at Deliverect

In the competitive restaurant landscape of the UAE & KSA, leveraging loyalty programs can significantly boost customer spending, enhance retention, and drive growth. This article explores key strategies and the latest trends in loyalty programs tailored for the customers in the two countries.

The importance of Loyalty Programs

As the restaurant market flourishes, loyalty programs have become essential for building a dedicated customer base. These programs reward guests for returning and staying engaged with your brand, ultimately generating more revenue. The evolution from simple analog rewards to sophisticated, tech-driven systems mirrors the rapid development in consumer expectations in this region.

Historically, loyalty programs were basic, today they use technology and data analytics to deliver personalized and engaging experiences. In the restaurant industry, common loyalty program features include point-based systems, discounts, free items, and exclusive offers tailored to local tastes.

For instance, many popular UAE restaurants and cafes, like Açaí Spot’s loyalty program, enhance the dining experience by fostering community and rewarding repeat visits. Customers appreciate the straightforward 10% cash back on all purchases, which encourages regular patronage and makes them feel valued.

Additionally, loyalty members receive early access to new menu items, creating excitement around fresh offerings. To promote the program, the brand leverages in-store promotions, social media, and staff education to highlight its benefits effectively.

Recent research indicates that the loyalty market in Saudi Arabia has experienced a robust compound annual growth rate (CAGR) of 11.6% from 2019 to 2023. Looking ahead, the market is poised for continued expansion, with a projected CAGR of 8.5% from 2024 to 2028. This growth is expected to elevate the market’s value from approximately US$1.04 billion in 2023 to an impressive US$1.59 billion by 2028.

  1. Key Statistics on Restaurant Loyalty Programs

Adoption Rates

The popularity of loyalty programs has surged in the region over the past decade, especially post-pandemic, as restaurants seek ways to re-engage with their customer base and drive sales. Recent trends show that restaurants in both countries are increasingly recognizing the advantages of these programs for customer retention and repeat business, which is part of a broader trend towards customer-centricity.

Customer Participation

Participation rates in loyalty programs are high across demographics in the region, especially among millennials.  In 2021 alone, 54.7% of millennials were active in restaurant loyalty programs, making them the largest user group. Millennials (24-39) are known for being digitally savvy and wanting personalized experiences, and they see huge value in their tailored rewards and offers. According to YouGov data, 27% of UAE consumers are loyalty program enthusiasts.

Impact on Revenue

Data shows that with each monetary transaction, users maximize their point earnings. Additionally, loyalty programs have a measurable impact on restaurant revenue. 

On average, loyalty program members generate 12-18% more incremental revenue growth annually than non-members. These stats prove these programs work not only to attract and retain key customer segments but can also increase the amount of dollars spent on your business’s menu items. 

These financial benefits show the importance of effective loyalty programs to drive growth and stay competitive in the restaurant industry. However, it is essential to explore the emerging trends shaping restaurant loyalty programs today to understand how these programs continue to evolve and adapt and how restaurants can fully take advantage of their benefits.

  • Trends Shaping Restaurant Loyalty Programs

Personalization and Customization 

Personalization is a game-changer in the restaurant industry. Using data analytics, restaurants in the UAE can track customer behavior and preferences to offer targeted rewards.

For example: Açaí Spot’s loyalty program leverages customer data to tailor rewards and promotions, ensuring they resonate with individual preferences.

Personalized reward programs and offers are key to attracting and keeping customers. This curated approach enhances the customer experience, builds a stronger emotional connection with the brand and attracts repeat business and loyalty.

Technology Integration

Technology integration has revolutionized customer engagement with loyalty programs. The rise of mobile apps and digital platforms has simplified access and interaction, empowering customers to effortlessly track their rewards and receive tailored offers. These platforms facilitate a more convenient and streamlined connection with brands, enhancing the overall experience. Restaurants in both countries are increasingly embracing personalized, technology-driven solutions while exploring cashback options to deepen customer engagement.

The introduction of innovative programs by leading players underscores a competitive landscape dedicated to delivering exceptional value to consumers.

However, a seamless experience across multiple channels is also key to modern loyalty programs. Restaurants are now focusing on integrating online, mobile, and in-store interactions to create a cohesive customer experience.

For example, QR code scanning at checkout to accumulate points enhances customer interaction and satisfaction. This integration is crucial for restaurants in the UAE & KSA, where tech-savvy consumers expect such experiences.

  • Future Directions of Loyalty Programs

As loyalty programs evolve, two main trends are shaping their future. On one hand, AI and machine learning will transform loyalty programs by delivering super personal experiences. On the other hand, sustainability and social responsibility are becoming increasingly important as consumers value ethical practices more and more.

  • AI and Machine Learning

These technologies allow restaurants to analyze customer data more effectively, predicting preferences so restaurants can reward and communicate with guests more precisely.

AI-driven micro-segmentation, which enhances targeting and effectiveness beyond generic offers, helps draw consumers in and increase the number of dollars spent. 

  • Sustainability and Social Responsibility

Establishments should aim to match customer values. Some examples are discounts for using reusable containers or eco-conscious packaging. These businesses also align their loyalty programs with broader corporate social responsibility goals.

The future of restaurant loyalty programs is combining AI-driven personalization with a focus on sustainability and social responsibility. Together, these trends set the new standard for how loyalty programs can drive customer satisfaction and long-term business success. 

As restaurants use technology to become more precise with their menu items and loyalty programs, they improve the customer experience and build a deeper connection with their audience. By aligning their loyalty programs with ethical practices and broader social goals, they will resonate more with the values of today’s consumers.

Conclusion

The increasing implementation of loyalty programs highlight their necessity for driving customer retention and revenue growth. As these programs become more tech-driven and socially responsible, restaurants that embrace innovation and mirror their customers’ values will stand out in a competitive market.  

These programs increase customer satisfaction, spending, and repeat visits by rewarding frequent customers with points, discounts, and exclusive offers. Businesses that understand this will build deeper customer loyalty, helping them stand out in a crowded market and remain relevant for years to come.

All these future trends will shape the landscape of loyalty programs, and restaurants that get ahead of the curve and innovate will win customers’ loyalty, while enjoying long-term growth and maintaining a competitive edge in the restaurant industry.

Hospitality

UAE’s Mulk International and India’s Ajeenkya DY Patil Group forge a landmark Dh100m partnership to launch the region’s first large-scale virtual hospital

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partnership healthcare

In a landmark collaboration, Mulk International from the UAE and India’s Ajeenkya DY Patil Group have acquired stakes in Mulk Med Healthcare to become equal shareholders and launch what will be the region’s first large-scale virtual hospital of its kind with more than 20,000 doctors on board.  Both groups have further pledged an investment to the tune of AED 100 million to revolutionise healthcare in the MENA and Asia-Pacific regions. This strategic partnership is set to redefine healthcare delivery by leveraging virtual solutions to enhance access and provide comprehensive services to millions.

Dr. Nawab Shafi Ul Mulk, Founder & President of Mulk Med Healthcare, emphasized the transformative vision of this collaboration: “Our partnership and shared vision with the DY Patil Group is a major landmark agreement which signifies a shared dedication to rapidly evolving innovation and inclusivity in healthcare.”

The new Initiative introduces Mulk Med Virtual Hospitals ecosystem across the globe, one that has already been implemented in countries like Zimbabwe and Papua New Guinea and is in advanced stages of implementation in other territories. The comprehensive healthcare platform is also aided by Mulk Med App and video conferencing system available in 170+ countries currently, offering multiple essential services including 24/7 telehealth with doorstep free delivery of discounted medicines, also facilitating lifesaving smart ambulances, mobile clinics, and round-the-clock home care.

Transforming Healthcare Delivery in the region

According to Dr. Ul Mulk, these innovations are designed to improve healthcare accessibility, providing unmatched convenience for both urban and remote patients. Patients will benefit from virtual 24/7 consultations from over 20,000 doctors on board globally along with more than 500 pharmacies and service providers. Additionally, non-insured patients and UAE visitors can avail huge discounts on laboratory, radiology, hospital admissions and surgeries besides doorstep medicines, wellness, and aesthetics using the newly launched Mulk Medicare Privilege Health Card for the most affordable services that also give users access to longevity & precision medicine centres and genomics labs.

Shaji Ul Mulk, Chairman of Mulk International said: “Our global investments underscore Mulk Group’s long-standing commitment to driving impactful societal change.  We are dedicated to fostering partnerships with local communities and governments to ensure sustainable and inclusive growth.”

The initiative is also set to redefine emergency response with lifesaving smart ambulances and will extend services to underserved communities through mobile clinics. For travellers, both in & out bound comprehensive tourist healthcare insurance will provide peace of mind with robust medical coverage, while cutting-edge ICU Pods, Mulk Vital signs devices and kiosks with advanced AI enhanced technology incorporated to continuously monitor patients with chronic diseases will optimise recovery, and enhance hospital efficiency.

Dr. Ajeenkya Patil, Chairman of DY Patil Group, highlighted the initiative’s significance: “We intent to facilitate medical tourism strong demand in India from Africa & other regions in our newly build world class Hospitals care in the Indian state of Maharashtra. Together, we aim to deliver a transformative, patient-centric healthcare ecosystem that prioritizes accessibility, affordability, and quality.”

“Innovation is key to solving the world’s healthcare challenges and Mulk Med Healthcare is rightly poised to embark on the global expansion to bring affordability and top notch  equitable healthcare facilities to one and all. Mulk Medicare comprehensive hybrid model of  digital and onsite healthcare innovative solutions not only address immediate medical needs but also lay the foundation for a sustainable, scalable future in healthcare,” added Dr. Shafi Ul Mulk.

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Hospitality

Aleph Hospitality Announces Two Luxury Resorts in Morocco

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Aleph Hospitality has signed management agreements with the owners of two luxury resorts: Marchica Lagoon Resort in Nador and Michlifen Resort & Golf in Ifrane, Morocco. Aleph Hospitality has assumed operations of the two luxury resorts, bringing its world-class hospitality management expertise to both hotels.

Located on the pristine shores of the Mediterranean in the north of Morocco, only a 45-minute drive from Nador International Airport, the luxury Marchica Lagoon Resort features a sophisticated Moroccan-inspired décor throughout the 93 elegantly appointed rooms and suites and its seven restaurants and bars. With the spectacular Marchica Lagoon on its doorstep, the five-star resort’s extensive leisure and recreational facilities include outdoor and indoor swimming pools, a beach club, extensive water sports options, a luxury spa with hammam, a fully equipped fitness centre, kids club, and tennis courts. In addition, the resort offers and idyllic setting for weddings and events with its stunning views of the lagoon and expansive gardens, as well as state-of-the-art meeting salons and lounges opening out onto a convertible terrace, also suitable for marquees.

The five-star all-suite Michlifen Resort & Golf, located in Ifrane with the majestic mountains of the Middle Atlas as its natural backdrop, is designed as a luxurious Alpine chalet. At an altitude of 1,650 metres, the luxury resort enjoys snow in winter and offers a cool mountain climate in summer. Only a one-hour drive from Fes Sais International Airport, the resort comprises 72 suites with four distinct choices of luxury décor, seven food and beverage outlets, a golf and country club with a signature mountain course by Jack Nicklaus, indoor and outdoor swimming pools, a kids club, as well as an exceptional mountain spa with two hammams and a dedicated Balneotherapy Centre. In addition, Michlifen Resort & Golf offers extensive meeting and events facilities, a fully-equipped business centre, an indoor multi-purpose sports hall and a Royal Theatre.

Morocco received a record-breaking 14.5 million tourists in 2023, an increase of 34% compared with 2022, breaking 2019’s pre-pandemic record of 13 million arrivals. The surge in tourism is in line with the government’s USD 580 million plan to boost the tourism sector in an effort to attract 17.5 million tourists by 2026. The government’s road map includes the introduction of new airline routes in preparation for 2030 when Morocco will co-host the World Cup alongside Spain and Portugal.

Bani Haddad, Founder and Managing Director of Aleph Hospitality says: “We are thrilled to have been trusted with the management of these two exceptional luxury resorts in Morocco. We have been waiting for the right partners and properties to enter Morocco with and we could not have asked for a better way for us to commence our operations in the Kingdom. This is an interesting time with the unprecedented surge in tourist arrivals and the government’s ambitious plans to boost the sector. We look forward to working with the owners to uplift the operations of the resorts and to make the most of the promising conditions in Morocco.”

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Hospitality

A Deep Dive into the Future Applications and Implications of Artificial Intelligence in Hospitality

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Artificial Intelligence in Hospitality

The continual advancements in technology and Artificial Intelligence (AI) are not just reshaping, but fundamentally transforming the hospitality industry, driving exponential value for sales, marketing, and revenue management, today and tomorrow.

A hot topic for the industry, AI is one of the key areas of focus at this year’s HSMAI Middle East & Africa Commercial Strategy Conference, taking place on 26-27 November at the Conrad Dubai. Tackling the most pressing trends facing hotel executives, the annual conference brings together the region’s hospitality sales, marketing, distribution and revenue management community for unmatched industry insights and inspiration.

The event will take a 360- degree look at AI in hospitality, covering it from inspiration and theory to practical applications across sales, marketing, distribution and revenue management. In the lead up to the conference, we asked four industry leaders for their insights into the future applications and implications of technology and AI in hospitality.

With input from John Sanei, Global Futurist, 5x bestselling author and 2x award-winning podcast co-host; Michael J. Goldrich, Founder & Chief Advisor, Vivander Advisors LLC; Leo Barrit, Vice President of Sales, FLYR Hospitality; CS Ramachandran, CRME, VP, Hotel Revenue Optimization, Preferred Hotels & Resorts, and Michael McCartan, Area Vice President EMEA, IDeaS.

How do you see AI be(come) a real work partner to sales, marketing, revenue management and distribution professionals?

All five industry leaders agree that AI is rapidly evolving from just a tool to a powerful work partner. By automating routine and data-intensive tasks and facilitating data-driven decision making, AI significantly increases productivity and impact as it frees teams to focus on strategy, creativity, customer relationships, and revenue growth.

“From a revenue manager standpoint, there are a dozen or more tasks they have to do on a weekly basis, from daily pickups and forecasting, to reporting, analysis etc. There are a lot of disparate tasks that make up their 40+ hour work week. AI is going to cut down dramatically on many of those tasks by creating the initial reports and analyses for them, and now they’ll just have to manage by exception. Revenue managers and their teams will provide guardrails for AI to operate within, and then managers can perform any tasks outside those guardrails,” said Leo Barrit. 

“AI is a force multiplier,” said Michael Goldrich. “In revenue management, AI analyzes real-time market trends, enabling dynamic pricing and demand forecasting. For marketing, it personalizes guest communications and optimizes campaigns based on granular data insights.”

Michael McCartan echoes this sentiment, “Applied in revenue management solutions specifically, AI and automation play a critical role in processing forecasting-related data to detect shifts in demand and quickly responding with recommended pricing and inventory management decisions.”

CS Ramachandran added, “In sales, AI’s predictive analytics and automation lead to better performance and higher deal closures. Overall, AI reduces workload and stress, contributing to higher job satisfaction and employee retention.”

Looking beyond what AI can do today, John Sanei commented: “The real question is how we are using AI in preparation for the future. This is what I call the ‘AI opportunity radar’ which has four quadrants: the internal and external realms of AI application as well as the differentiation between today and tomorrow. Many organizations focus on just the internal applications of AI for today, without planting the seeds for tomorrow’s work. In fact, that’s just 25 percent of the opportunity that exists. We need to move from a focus on AI as a tool to AI as an unprecedented partner to transform an organization’s core offering, to revolutionize the industry, or even establish a new one.”

If everyone is going to be using AI, how can hotels and brands still differentiate themselves? How can we balance automation with the need for personalized guest experiences? 

The interviewees agree that true differentiation hinges on how seamlessly hotels integrate AI with the human touch to provide the unique and authentic experience travelers expect today. Also, a critical component is the training of teams to discern when to rely on AI and when to step in with genuine human empathy. The combination of guest engagement training with the right technology and established feedback mechanisms will be crucial for continuous service improvement.

Michael Goldrich said, “Leading brands will leverage AI to anticipate guest needs and personalize at scale, while still delivering warmth and authenticity through frontline staff. Ultimately, successful hotels will make the human-AI collaboration invisible, leaving guests with the impression of superior, attentive service.”

John Sanei commented, “Like many other technologies AI will become democratized, and to some extent it already has. It’s not about which AI tools you use, it’s what the teams do with the technology to enhance the customer experience and transform the curation, creation, and delivery of the hotel or brand’s core offering. We need to think about how AI can help organizations build new capacity and give them the ability to behave towards the future. Asking existing teams to innovate – let alone disrupt – doesn’t work. We need to build ‘tomorrow teams’ that work alongside the today team to make this happen.”

From CS Ramachandran’s perspective, “HI (Human Interaction) will trump AI (Artificial Intelligence) in the fast-evolving landscape of AI especially in hospitality. Hotels must differentiate by blending automation alongside personalized guest experiences. Some steps in this direction include creating a unique brand identity, ensuring exceptional human interaction, while utilising innovative technology to enhance services.”

“In the hotel industry, we of course already have different classes ranging from luxury to economy, but AI is going to help personalize the offer for you even more precisely,” commented Leo Barrit. “With AI, the hotel will know the individual customer or guest, know your likes and dislikes, your buying propensity and timing, and provide you with a personalized offer that will resonate with you. The industry will evolve to that quickly. Pricing is a component of that, but as AI learns more from customer data that will be a part of providing those very personalized offers.”

Michael McCartan said, “A strong brand identity is key. If using AI-enabled tools like an online chatbot or a voice-activated virtual assistant to interact with guests, ensure that they reflect your brand’s personality and tone of voice. This consistency across all touchpoints, from online to in-person, creates a more seamless and memorable guest experience. One thing that will go a long way with guests is to ensure you are being transparent about how you use AI and prioritize data privacy. This builds trust with guests and positions your brand as a responsible and ethical leader.”

What jobs do you think AI could make redundant in hospitality and what new roles could it create, especially when it comes to sales, marketing, revenue management and distribution?  

John Sanei said, “Every job that is repetitive in its activities will be the first to become redundant and to be replaced by AI. Although it will be impossible to say which jobs we will have and need in the future, we will see a profound shift in the relationship between humans and machines. We will see two types of businesses: those driven by AI and robots and organic businesses engineered by humans. The currency of the future is human connection, which will become the highest form of luxury and present a great opportunity to the hospitality industry for purposeful, transformational travel and tourism.”

Michael McCartan commented “While AI won’t entirely replace human roles, it will undoubtedly reshape the nature of these jobs. As the economist Richard Baldwin famously said at 2023 World Economic Forum’s Growth Summit, “AI won’t take your job, it’s somebody using AI that will take your job”. As AI becomes more sophisticated, new roles will emerge. AI Specialists, Data Analysts, and AI Ethics Officers will be in high demand to develop, implement, and manage AI systems ethically. Additionally, human-centred Design Specialists will be crucial to ensure seamless human-AI collaboration.”

Michael Goldrich said, “AI will likely redefine roles such as data entry, basic customer service, and routine reporting in hospitality. However, this shift will open the door to new, specialized positions: AI Strategy Managers to oversee ethical deployment, Experience Design Architects to create hybrid digital-human guest journeys, and Revenue Intelligence Officers to merge AI insights with industry acumen. AI in hospitality isn’t about eliminating jobs; it’s about evolving them. The future belongs to those who can synergize AI’s capabilities with human creativity, transforming service delivery into a refined art.”

CS Ramachandran added, “As with every other decade, when there is a change in technology, the industry adapts with new roles. We have seen Sustainability Specialists, Guest Experience Managers and DEI focused roles emerge, and now existing roles will evolve and adapt to include technology expertise. The most successful professionals will be those who can effectively collaborate with AI, oversee the work, and identify opportunities for AI implementation.”

Leo Barrit thinks the headcount will likely stay neutral. “The productivity of your managers will increase, but their skillsets will need to continually be enhanced. We’re still in the early days with natural language prompts, where the key is still making sure you’re using the right prompts. I believe that eventually as machine learning improves, we’ll arrive to the point where you don’t have to be quite as good in writing prompts within a few years.” 

What safeguards should be in place to maintain brand authenticity when it comes to using AI? 

CS Ramachandran said, “There are a lot of guidelines being developed around this especially given the exponential use of AI tools. Transparency in AI usage is key, this includes how we collect data and how we avoid the stereotyping of the same. High-quality, diverse datasets are key to train AI models as poor data will not only lead to inaccurate results but also further ‘AI Hallucinations’. AI tools for real-time sentiment analysis helps to align brand messaging with consumer perceptions. By implementing these measures, brands can harness AI’s power while preserving authenticity and fostering customer trust.”

“Now more than ever, ethical guidelines and data privacy are paramount,” commented Michael McCartan. “Transparency about AI usage, rigorous data privacy and security measures, and adherence to ethical AI practices, including eliminating bias in AI algorithms, are crucial not only to build trust with customers, but also to ensure accuracy. AI tools must also be ‘trained’ to align with a hotel’s brand voice and personality. Comprehensive brand guidelines, AI training on high-quality, brand-aligned content, and human review of AI-generated content ensures consistency – and must be regularly monitored and fine-tuned.”

Leo Barrit said: “The hotel brand will need to apply proper guardrails and parameters on how AI is being used. If you’re applying the right parameters on pricing and the structure of your brand should be portrayed, the AI will operate within those. For a large hotel brand, they may not be able to centralize the efforts of thousands of hotels, but they can create a set of guidelines that speak to their global brand, and then more specific sales and marketing guidelines for individual properties or regions.”

Michael Goldrich commented, “To maintain brand authenticity with AI, hotels must establish rigorous standards and oversight. Clear guidelines for AI-generated content, structured human reviews for customer-facing outputs, and AI governance frameworks are essential. Training teams on AI’s limitations, setting up authentication protocols, and conducting regular audits ensure AI aligns with brand voice and values. Equally crucial is transparency around AI’s role in guest interactions. Authenticity is built by candidly integrating AI, enhancing the guest experience without overshadowing the human essence of hospitality.”

John Sanei concluded, “The highest form of technology is authenticity. With the democratization of AI tools, these will no longer be a differentiator. Brand authenticity will be driven by how companies are using technology, including AI, to give guests the authentic experience they are looking for.”

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