Building Loyalty Through Membership with Unlimited Vacation Club

Points and miles may dominate the loyalty conversation, but they’re far from the only way to build lasting customer relationships. In the final episode of our Loyalty Series, Dan sits down with Nicolas Friend, Head of Brand, Marketing and Customer Experience at Unlimited Vacation Club, to explore a different model, one built around membership, belonging, and exclusive access across Hyatt’s Inclusive Collection resorts.

Nicolas explains what members actually receive when they join, from preferred rates and room upgrades to VIP experiences and personalized service that begins long before check-in. But beyond the perks, the conversation explores something deeper: how a membership program can foster a genuine sense of community. From members who return year after year and form friendships at events to the excitement of being among the first guests to experience a new resort, loyalty becomes about connection as much as benefits.

We also explore the customer experience journey, discussing how brands can create meaningful moments before, during, and after a stay. Nicolas shares his perspective on personalization, what travelers really expect from hospitality brands today, and why recognition often matters more than rewards. Finally, we look at the role of AI in hospitality and loyalty, where it's already helping guests discover travel options and where its greatest potential may lie: connecting fragmented systems behind the scenes so teams can deliver more seamless, personalized experiences at scale.

Thanks to Loyalty Status Co for sponsoring this series!

👉 Listen to Building Loyalty Through Membership Now

🔥 Special Thanks to our Season 7 Title Sponsors for their Support: Bokun, Civitatis, Intrepid, Kaptio, Propellic and Protect Group

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Transcript

Loyalty Series Setup And Sponsors

SPEAKER_02 0:05

Hello, everyone, and welcome back to the Travel Trends Podcast. This is your host, Dan Christian, and we're about to begin our third episode in our loyalty series. This has been fantastic for me to bring such uh amazing executives together. Starting off, as you heard, we actually brought the team from Loyalty Status Quo to the first episode. We had the CEO, Mark Ross Smith, and the CFO, Stuart Malem, join us. And that was a great start because we talked about status. And then last week we had uh Gilbert Ott, the director of loyalty at One World Alliance, join us to talk about points and miles as well as status. And so we've focused a lot on airlines. But the other big category that I alluded to throughout these conversations that we wanted to focus on is accommodation, hotels. And we have the perfect guest to round that out. But before I introduce him, I just wanted to acknowledge the sponsor for our series, which is Loyalty Status Co. And if you haven't heard already in the last three episodes, they are an award-winning travel technology company that helps travel loyalty programs drive customer acquisition, growth, and ancillary revenue through their elite status programs. Loyalty Status Co. owns and operates statusmatch.com. And you can find out more information about them at loyaltystatus.com. Now, let's bring in our guest today, who is the head of marketing brand and CX at Hyatt's Unlimited Vacation Club. He is Nick Friend. Nick, welcome. Thanks for joining us on Travel Trends.

SPEAKER_00 1:29

Thank you, Dan. I'm excited to be here. Appreciate you having me on today. For sure.

SPEAKER_02 1:32

And I understand you're usually based in Atlanta, but today you're in Cancun, is that right?

SPEAKER_00 1:36

That's correct. Um, one of the benefits of this industry is we obviously get to be on the road quite a bit. So um, yeah, Atlanta's home for me. It's been home for about 10 years. Um, fortunately, we get the world's busiest airport, so I can get anywhere pretty quickly. Including today, I flew on down to Cancun, which is where the office is based for the Hyatt Inclusive Collection and Unlimited Vacation Club. Um, so I do come down here quite often and have a lot of colleagues down here. But yeah, there are certainly worse places to go. Cancun is um is uh a beautiful work destination just as much as for vacation.

SPEAKER_02 2:04

Sure. Yeah, I was in Cancun a little bit earlier this year with my family and for spring break and had the most incredible uh vacation. It was our first time in Cancun. And so I I can't wait to get back. So yeah, for sure, a privilege to be able to be down there and work from there, I'm

What Unlimited Vacation Club Is

SPEAKER_02 2:17

sure. Uh now let's give everyone a bit of an overview of Unlimited Vacation Club to start. I think that would be really helpful. And as you know, I'm thrilled that we're gonna be able to talk about accommodation and hotels and loyalty, and I'm keen to get your overall take on membership programs compared to some of these traditional loyalty programs. But first and foremost, would you mind sharing with all of our listeners a little bit more about unlimited vacation?

SPEAKER_00 2:38

Yeah, Unlimited Vacation Club is a vacation club within the uh World of Hyatt ecosystem. Um, basically, members pay for membership access to the Hyatt Inclusive Collection hotels, which are namely through Mexico, Caribbean, some in Latin America, and uh within Europe as well. We have over 100 properties. Um, members in the Unlimited Vacation Club get access to these hotels, so um, they get special discounts, um, special rates, special access to experiences for members only, um, and then elevated benefits well on property, including upgrades based on availability, discounts on spa services, et cetera. Um, so it is the type of membership that if you like all inclusive vacations, it's gonna be um the product for you. Uh I'm not sure if you know this, but Hyatt has become one of the leaders in the all-inclusive category just over the past six to seven years, um, and now has uh uh, like I said, well over a hundred properties in this space. So if that's a kind of travel that you enjoy, then uh Unlimited Vacation Club is a no-brainer investment for you.

SPEAKER_02 3:33

I know I appreciate sharing that context because we did a three-part series with Arda recently out of Las Vegas in the Bellagio, which was fantastic, very well received by our listeners. And I learned so much uh from that series and specifically uh about loyalty and loyalty programs and how loyalty members become owners of uh timeshares and how important that is. So there's lots I want to get into today, and and we'll definitely touch on that. But just for our listeners too, to understand your background. You were with Intercontinental for a number of years. You've got a very strong hospitality background, you were the director of marketing um before you took over as head of brand. Um, but tell us a little bit more about your role. When I say head of brand marketing and CX, tell everyone a bit more about what you do and your role.

SPEAKER_00 4:15

Yeah, great question. So I have been in marketing my entire career, but the last 10 years specifically have been within hospitality, within brand and marketing and guest experience. Um, I am a travel nerd. Um, I love travel and um am thrilled to be able to work in it and have been able to service travel bands from a few different angles. So I started my hospitality career at IHG, which is based in Atlanta, um, and there did brand management for the global luxury brands, um, doing work for brand marketing, managed with intercontinental hotels and resorts globally. Um, also worked on a new brand launch for Regent Hotels and Resorts when IHG acquired that in 2018. Um, so a lot of great brand strategy and marketing work there. Um, then I worked as a uh a consultant for a couple of years, worked with uh several other brands that um would be household names in the industry for luxury hospitality. Uh and then I joined Hyatt full-time in 2023 as director of marketing for global well-being, leading strategic partnerships and marketing uh within the well-being space specifically. So I launched the Peloton Partnership for World of Hyatt um and as well as masterclass and uh renewed the Headspace partnership with World of Hyatt as well, and uh did a campaign around that uh about two years ago. Um, and then I came to UVC about a year ago, um, which is an interesting growth space for Hyatt. As I mentioned earlier, Hyatt has become uh one of the biggest leaders in the all-inclusive segment. And the Unlimited Vacation Club is a super interesting offering within hotel, larger hotel companies because it's not uh your typical timeshare. And I I use that word to give it a bit of context because that's how the product is sold and that's its easiest comparison. But the product is much different than a traditional timeshare because you're not buying a set amount of time or access uh uh as you typically do with uh with a timeshare ownership deed. Um you're buying uh a membership that gives you access, discounts, perks, et cetera, um specifically within Hyatt's All-Iclusive Collection. So um there aren't properties that are uh unlimited vacation club properties. It is the Hyatt Inclusive Collection Estate, which is an amazing estate. It's over on our properties between Mexico, Latin America, Caribbean, and Europe and expanding by the day. So for like people that enjoy all-inclusive vacations, it's a very unique segment. So for me, seeing the growth in this area, I was keen to dive in and apply

Nick Friend’s Hospitality Path

SPEAKER_00 6:36

my brand hospitality marketing skills to this new sort of segment within that I hadn't worked in before. So for me, it's been a great growth opportunity to get to know the all-inclusive segment better and get to know vacation clubs. And even though I've been in this sector now for about a year, um I'm still learning a lot every day. It's it's a really interesting operating model because you've got the membership club, we've got the World of High Loyalty Program, you've got the resorts themselves, there's a lot of different players, and we have to work across that ecosystem.

SPEAKER_02 7:01

Well, one of the things I was keen to ask you, knowing your background and the fact that you've you know made this transition is what attracted you to it? Because clearly it's a um, there's obviously a lot of data, there's a lot of uh and you when I looked at your you know your profile and your your role, um keen to know from your perspective, why you chose to, you know, what attracted you to you Unlimited Vacation Club and the kind of the membership-based approach to to customer loyalty.

SPEAKER_00 7:27

Yeah, that's a great question. Um, I wanted to go deeper with loyalty in my career, so especially if I look at it from more of a business and commercial standpoint. So my previous touch points with loyalty um were from the brand side and then from a partnership side. But uh in my role now, it's more owning the holistic ecosystem for Unlimited Vacation Club. And and being in a leadership role for the organization has put me in a good position to be the um the commercial partner to the rest of the business of being the voice of the member, understanding the member's needs and wants, uh, really the voice of the customer and bringing that to the business and creating business cases to strengthen the membership value proposition. Um so for me, it's kind of um an amalgamation of a lot of the brand uh marketing CX work I did on the hotel side, but now sort of in a full-stop ownership system um for the Unlimited Vacation Club, albeit still within the hotel loyalty space. It's an interesting spot within the industry for sure.

SPEAKER_02 8:21

Well, and you started to break this down a little bit for our listeners, and I want to dive into that a little bit more about the difference between membership versus traditional loyalty programs, because that was what's unique about Unlimited Vacation Club. And one of the key reasons I wanted to have you a part of the podcast in this series, because it is really a unique angle that you have that I in the subscription model. So tell us uh for our listeners that are familiar with traditional airline or loyalty programs, how would you describe this model that someone that to someone who's not familiar with it?

SPEAKER_00 8:48

Yeah. So for traditional travel loyalty programs, it's uh earn and burn kind of system, right? You you stay at hotels, you earn points, you fly with an airline, you earn points, and then you redeem those for free flights or hotel stays. So that's a traditional loyalty program. Um, and we do plug into that, but that's not the core offering. Um, the core offering for the vacation club or any pay-for-membership club is you are paying for special access above and beyond. So you can almost look like it uh similar to fast tracking status. So if you look at the top status tier members for airlines and hotels, you often have to stay a lot with that with those brands to earn the top tier status. In a way, buying membership is a bit of a shortcut to that in the sense of you come in with an immediately higher status and then you get access to those higher perks. So things like upgrades, um special access and things like that. And then from a pure economic value proposition standpoint, you're essentially paying for um for discounted future travel. You're almost hedging your uh bets on the future travel that you will buy. So by becoming a member, you get the best rates guaranteed on any future stays you book. So you get a certain number of nights included in your membership, but then above and beyond that, we have what we call unlimited nights where members can book uh as many nights as they want for even for their groups uh using that special discount that they have access to. Um that's something only available to members through this. Loyalty members don't get that kind of access through the traditional program.

SPEAKER_02 10:09

Okay, so obviously there's a few big differences there. For people who are familiar, as you say, with earning points and that earn and burn. Um, what are the main advantages of creating loyalty through membership?

SPEAKER_00 10:20

Um the main advantages for us have been you've got a dedicated member base who can be a strong fandom for new products, events, and whatnot. So when the Hyatt Inclusive Collection opens a new property, it's often the UVC or unlimited vacation club members are the first to fill that hotel because they are big fans of the Hyatt Inclusive Collection estate. So for Hyatt and the Inclusive Collection overall, you have this built-in base that is passionate about the product, loves to talk about the product, experience a product. So again, they're first to go to a new property. Um when it comes to events, we host uh VIP member events throughout the year. We have about 15 on the calendar for 2026. Um, for them to come to these events, uh it's it's a great opportunity for them to engage with the brands they love, but also with each other. And it really creates a sense of community that a lot of them like to tap into. It's part of the reason they bought into a vacation club. So they connect with each other and connect with our staff as well, and then form really strong bonds that keep them coming back time and time again. So there are people that will form individual relations relationships with hotel staff and keep in touch with them via WhatsApp even when they return home. And then when it comes to uh the community within with each other, um, there are meetup groups that happen even in the US where there isn't a high at all inclusive collection property anywhere near them. But the limited vacation club is what brings them together. It's a tie that

Membership Model Versus Earn And Burn

SPEAKER_00 11:41

binds. So it creates this um community that allows them to tap into other luck, like-minded travelers when they're looking to you know expand their social circle.

SPEAKER_02 11:50

Thank you for sharing. I mean, one of the things that stood out to me from uh the series we did with Arda about the um timeshare model. We did an episode on how the timeshare model has evolved and kind of the modern timeshare. And then the second episode was on experiences. And the thing that stood out to me was the number of uh experiences that are now offered uh by various timeshare properties. And it's the main reason that people are choosing to become part of those programs is that they have access to your point about access and then also experiences and things that are more exclusive, which is very different than people that are accumulating points. What would be some some good examples of those that you guys particularly offer with the unlimited vacation club model that is most appealing to your uh to your members?

SPEAKER_00 12:34

Yeah, I mean, to your point, the experiential economy has just continued to grow, especially since uh COVID. Um and hotels in particular are well poised to offer um unique experiences because travel, travel is exciting, and people buy into this program um to have more of those experiences. It's all about enriching your life. Um, some examples of experiences. So we have uh, as I mentioned, these 15 uh VIP member events at our properties, and we'll do robust programming over a few days, and we'll have something um specific for our members, like maybe it's a ceviche making class with a chef, or maybe it's a top-shelf tequila tasting, or maybe it's a catamaran ride just with members to watch a sunset in Los Cabos, as was done about a month ago. Um, these experiences, you some of them you could do on your own, but doing them with like-minded travelers in an exclusive setting that gives you more behind-the-scenes access, is what our members really enjoy. So having the chef come to you and tell you about the fish that was caught down the road by local fishermen and um using local limes to create this wonderful ceviche dish. Like that's just an experience above and beyond, obviously, going to a restaurant or even doing a traditional cooking class. Um, it's uh those kind of experiences, interactive, immersive, are what our members really crave. So we we build that programming into these events that we do. Beyond that, and this is again where I come to our unique position is you have the world of Hyatt, which also has its own ecosystem of experiences that our members can tap into. So when a member buys into Unlimited Vacation Club, they they get World of Hyatt status as well as part of their membership. Um, and through that, we have the World of Hyatt Find Experiences platform, which members can use points to to buy experiences. Um, and then there's limited time events, um, which could be access to like the Sundance Film Festival, for example, or Formula One. Um, these are things that the World of Hyatt has special activations at that our members can then get access to through the World of Hyatt. So um getting creating opportunities for connection, immersion, going deeper um is where the vacation club sort of uh has its unique value proposition above what a a standard guest could do. And because you're buying into the Hyatt ecosystem, you get that even greater by tapping into the World of Hyatt. So uh for our members, they kind of have a lot of different ways that they could tap into these experiences. We'll be right back.

SPEAKER_01 14:48

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SPEAKER_02 16:34

And now, back to the show. Just for our listeners too, UnlimitedVacationClub.com is the domain I was preparing for my conversation with Nick. I was checking out not only some of the resorts, but the overview of some of the different clubs and the VIP events. And the one thing that stood out to me was certainly um the gastronomy. So like I've clearly that is a big trend that people are looking for elevated culinary experiences and then music as well, like that you have these signature experiences with entertainment, that people want to be able to have exclusive uh concerts and entertainment. And so I'm intrigued by what makes the uh membership model and also the uh compared to the points and miles, like the idea that you have this exclusivity and access. One of the things that's come up on this series is the idea that it's a much more emotional connection than you have with the guest rather than something that's transactional when people, as you say, earning and burning and people are just trying to see they get enough value. Would you agree with that? Do you think that like the emotion is really kind of the key to the marketing and the success of building loyalty?

SPEAKER_00 17:34

I I do think it's both. Um, I think when you look at loyalty programs, uh, all travelers are not a monolith, right? People like different things and are motivated by motivated by different things. I think regardless, an emotional connection is a huge um unique selling point and really important for creating a lifestyle brand, which is what more and more the programs are becoming. So even if you look outside of travel, um, for example, Equinox, which is very much about performance-driven lifestyle, they've created a program, I believe it's called Equinox Inner Circle, um, where you get access to other things that would make sense for that lifestyle, like it's maybe it's a travel benefit or a shopping retail benefit that fits that personal profile. Um my point is, I guess there's two things. One is the ecosystem, an environment that you can operate in that yes, touches travel, but also touches other related areas. But then two, understanding the lifestyle of the member and who they are and what they value. And that's what can help create that emotional connection because you're basically formulating connections, partnerships, experiences that are designed for them and for their lifestyle. So that that goes beyond just points, earning and burning, right? I think the points earning and burning is still the foundation and you have to have that. But what's going to keep people coming back time and time again is that emotional connection. And ultimately that's how preference is formed. Um, it's it's uh not a um it's well known that travelers have myriad choices for any type of travel they do. Um, and travel brands have an opportunity to form bonds on a number of ways, but if it's purely transactional, just earn and burn, you're not gonna get true loyalty. This is where the emotional connection comes in. You've got to create something more um and have it fit into the traveler's lifestyle for them to really want to participate in that program time and time again.

SPEAKER_02 19:20

Well, one of the things from my background is that uh there's certainly travel brands that don't have loyalty programs or any type of um points or miles, they're really relying on the guest experience to be so uh amazing that customers will keep coming back, right? It's not nice with a restaurant, but certainly with the case with certain travel brands. And I you know, I was working with a large global travel corporation across multiple brands, and there was no loyalty program aside from a 5% past guest repeat booking discount. That was sort of the main thing that brought people uh the incentive that they had. But the answer every time about whether we had a loyalty program was the guest experience, is that you know you can consistently rely on having an amazing experience with any of the brands within the travel corporation group. And given that one of your uh parts of your title is customer experience, I'm keen to ask you a question along the same lines is that when you think about loyalty and customer experience, how connected are they? Because I'm sure that you, you know, you just want to make sure that everyone has a great experience every time at any of the resorts that they stay at. Um, but how do you kind of balance the two of having a great experience, but then also driving loyalty through a membership program?

SPEAKER_00 20:26

Yeah. Um, yeah, it's interesting. I have observed, especially in the upper luxury segment, that there are brands that don't have a loyalty program, but certainly have loyal travelers.

Loyalty And Customer Experience Link

SPEAKER_00 20:36

Um, and I think there are business and economic reasons that they're able to do that. For bigger global hotel companies, um, they uh appeal to a wide array of people. Um when it comes to the member experience, I mean, the holy grail is that the member experience is so good they come back time and time again without the need for rewards or points, right? That that would be an ideal standpoint from a business. However, um, it still is just one part of the travel equation and travel ecosystem. So um if you look at the landscape of travel companies, um, credit cards, uh, third-party partners that are across industry, there's such a bigger ecosystem when you look at the share of wallet for the traveler. And if you do a bang out job on guest experience and you deliver that and that's all you do, that's fine. Um, but I think it makes it harder to um be the go-to source for the traveler for other travel needs as well as this larger lifestyle ecosystem. So I think the opportunity that loyalty programs provide um is twofold. One, more options for the traveler, but two, ideally more personal experience for the traveler. So the expectation for travelers um has evolved rightfully so that uh they expect the hotel brands or airlines to know them and who they are and what they value and what they prefer. Um, and that's a fair expectation given the amount of data that the company now have that companies have on these travelers. So I think by um participating in a loyalty program. It's sort of a beneficial symbiotic relationship in the sense of the hotel and staff can know more about that traveler and what they prefer, where they've been, where we could recommend they go next. And then also the traveler gets a benefit of hopefully a more personalized stay, which then encourages them to stay within the ecosystem.

SPEAKER_02 22:17

Well, since you have a good uh view of the whole customer journey, uh one of the things I was also keen to ask you that I think would be really interesting for our listeners is that, you know, whether they have loyalty programs or not, many of them are obviously uh considering it and listening to this series to understand the opportunity around loyalty. And but one of the things that everyone's focusing on is trying to improve the customer journey and the guest experience. Yeah. And for your vantage point, what do you think has the biggest impact on retention and repeat bookings?

SPEAKER_00 22:45

Um I forget who to attribute this quote to, but uh something along the lines

Retention Through The Full Guest Journey

SPEAKER_00 22:49

of people don't remember what you said, but they remember how you made them feel. And hospitality. Thank you. Thank you. Yeah. Um Yeah, I I think about that a lot because hospitality is unique in the product experience. I mean, first of all, it can't be replaced by AI, it can be supplemented by AI, but uh it's really about human-to-human interaction and how we make a guest feel or a member feel when they're on property. Um, so I think whatever you can do to make them feel that their stay is above and beyond normal will go, will go further. So for us within the Unlimited Vacation Club, these members will be staying at a property that will have non-club members as well. The majority of the guests will be non-club members. Um, so we try to differentiate points along the guest journey to make them see the value of the program and feel either recognized and/or valued above and beyond. One specific example is that one of our properties within Riviera Maya, there's a dedicated pool just for members. So that's something that other guests cannot access, but just our members can. Um, we try to offer other amenities uh andor experiences too, just for members that uh all guests can't experience. Again, reinval reinforcing the value proposition to them. So if we think about crafting the experience, um well, taking a pause there, it's actually it begins before they're even on property. So if you look at the guest journey, A to Z, you've got pre-arrival. Uh, what can we do to help them anticipate their stay? But also, where can we set realistic expectations as we need to? For example, is the property under renovation? We should make sure that they're aware of that. Um, if the property is experiencing high occupancy, there's a chance they may not get an upgrade that they may expect. So, how can we communicate that in advance? So, pre-arrival, um, we make sure that we set the guest guest expectations accordingly, but also increasing their anticipation before arrival. Then once they're on property, it's about making sure they feel recognized and valued upon greeting through check-in when they're at their room, having the right welcome amenity. Um, again, should be personalized. So if the member prefers red or white, wine or sparkling, we should know that and deliver upon that. That's part of what they're paying for for this membership program. Um, obviously throughout the stay, the experience should be just a little bit special, whether that's getting special access to dining reservations or access to a special pool area. We try to see where we can operate to have something a little bit extra for members along the journey. And then at the end of their journey, and once they're home, how can we sort of keep that warm vacation feeling going? Um, is it that one of our concierges will send a photo uh of them at a special event, for example, and say, you know, we can't wait till the next time we see you. What can create that emotional connection above and beyond what you would typically get with a normal hotel stay? Um, so looking at the guest journey holistically, pre-arrival, um, once they're in the property and then once they've left the property, we're evaluating how can we differentiate the experience along the way to reinforce the members of value for our members.

SPEAKER_02 25:34

Yeah. And so the one of the things you mentioned there, like especially when you've got like um an exclusive pool, that obviously creates a sense of belonging and community amongst your members. One of the things that

Personalization That Guests Actually Notice

SPEAKER_02 25:45

I'm also keen to ask you about is personalization. So obviously there's the things that what brings people together, and then there's that what stands out for that's unique for them. And so I'd love to ask you this question around personalization as it relates to loyalty. What are some of the uh elements of personalization that you see are really important that help drive loyalty and and and how important are they?

SPEAKER_00 26:04

Yeah, um, I think it's hugely important because members and guests in general, if they're part of a loyalty program, expect the hotel or the airline to know a lot about them because uh people voluntarily give up this information and they travel a lot. So um if I'm on Delta, for example, I've been a medallion member for many, many years. Um, I have a preferred, you know, window seat um on certain flights. And when I request uh an upgrade, I anticipate that that will be met uh more seamlessly. So that's a small but tangible example of personalization that they know kind of where I like to sit. When it comes to the hotel space, I think we have the benefit of people on the ground to read through the situation of the arriving member and then also see what state they're in when they arrive. So are they arriving refreshed and ready to dive into vacation head first? Yes, okay, we'll say head to the pool area, there's a barbecue, you don't want to miss out on right now. Um, or is it that they're exhausted and want to just go to their room and they aren't feeling so well? It could be a matter of taking the next step to say, actually, um, you know, uh go to your room, that's fine, we'll send some chicken soup your way, hope you feel better. Um, sort of reading, reading the moment and how they feel and then catering the service experience based on that is just one sort of dynamic way we can do it in hospitality. But um, as I mentioned, because members do give us so much data, they do expect us to know it. Um, and I read a funny thing um recently. Are you familiar with the book Unreasonable Hospitality by Wilgadin?

SPEAKER_02 27:26

If you've not read it, I'm familiar with it, but I have not read it.

SPEAKER_00 27:28

So tell me. It's great. It's mandatory reading for anyone in this space. Um, so basically, he tells the story of a live in Madison Park and they became the world's best restaurant. And um, above and beyond, they they create magical experiences for guests that they talk about and really stay with in their sort of once-in-a-lifetime moments. I was reading recently about um a couple of restaurateurs that were saying now guests expect this level of experience, even when they're going to their local diner or somewhere else, they're expecting to be wowed by every service experience because the bar is being set high and people are talking about it. Shows like the bear, for example, popularize that sort of service culture. Um, all to say, when a member comes on property, they've paid for this loyalty program, they've stayed with us before. We have a lot of information on this. They really expect that we're gonna know how to cater this day to them. So, as I mentioned before, that could be knowing their wine preference, knowing that they're a fan of golf. So maybe it's helping to set up a tea time uh reservation for them the next day. Um, it's about reading the member, the occasion, and then catering the stay to their sort of need state, if you will. Um, and part of our benefit that we see of being a vacation club within the Hyatt Inclusive Collection is we can guide members through the stay a bit more than you typically would a guest that you don't know as well. So it could be a matter of recommending, you know, you like sunrise yoga, so be sure to go to our sunrise yoga on the beach, and then hey, you should go up here for breakfast uh because they have the best sunrise view from this balcony over here. That's sort of insider information, is what our uh member services teams are prov are are equipped to provide. But again, it's about knowing the guests and how they've traveled before and sort of catering those recommendations to them. I think that there's an expectation of curation, increasingly more so from members uh and and travelers in general.

SPEAKER_02 29:08

And something else obviously along those lines with the personalization now with technology and data and specifically

Where AI Helps Loyalty Deliver

SPEAKER_02 29:14

AI, yeah. There's a lot more you can do to try and uh personalize the guest experience. It was interesting when we started this three-part series in the very first episode, um uh Mark in particular was kind of calling out the fact that we haven't gotten as an industry where we thought we would be with personalization, that's probably the most overhyped area. Um, and it's the part I'm always keen to ask about, especially relates to AI because there's so much potential there. I'd love to get your take on this. So, like given you do have access now to um utilizing AI and you've got all this rich data, is there do you actually see a way that AI is uh improving the or impacting the loyalty and customer experience? Is there some tangible examples of that? Or do you think we're still uh very early?

SPEAKER_00 29:56

No, I think there are some tangible examples. So I will say Hyatt has done a good job of integrating AI in a meaningful way into the guest experience, even starting with the discovery and booking stage. So um on Hyatt.com, there's an AI uh tool that you can use to search. And you don't have to be super specific, but you can say, uh, I'm looking for ski uh resorts to redeem points at what are the best options? And it'll give you, you know, globally resorts that would fit that profile. Um, so that's a natural way to do it from the start. When it comes to members and loyalty, uh, as I mentioned earlier, the expectation is high that uh that we will know who they are, what they value, and what they prefer. The challenge often in hospitality is you've got different systems that uh need to integrate and speak to each other. So you've got like the hotel management system, you've got a CRM, um, you've got other communication channels, perhaps a booking call center. Like there's a number of systems that have to work together effectively. And that's where AI, I think, can play the biggest role of sort of aggregating that data. So we have seen hotels um be able to use AI seamlessly to optimize things. Um, and it could be something small like um like a dining menu or even a spa service menu. Um, I've heard from hotel teams give good examples of how they're integrating the data from those di disparate parts into their operational um optimization, if you will, using AI to offer the right service at the right time to the right type of guest. Um that's one specific way. I think honestly, that there's still a long way to go in hospitality just because um of the amount of data and the number of systems and making it work together in a seamless, intuitive way um continues to be where we have the opportunity in front of us. And this is a um an opportunity, I think, across the industry. Um because Hyatt, I think, is a bit more nimble, we've been able to dive into it quickly as I mentioned with the search example, but um, I do think that there's there's more opportunity um for better integration in the near term.

SPEAKER_02 31:48

I'm yeah, I'm actually pleased to hear that, Nick. That's actually encouraging for me. So I I I didn't want to assume that you guys were already far down that path. And the what I've got a follow-up question given that's the case, which is that you know, given that there is uh so much potential to be able to better personalize and even kind of predictive personalization and and how you can make sure someone retains membership by virtue of communicating with them at the right time to keep them active. What how important do you think that is going to be going forward? That you know you actually can be much more intentional about your personalization. And is there anything along those lines you can share with us about where you guys are headed?

SPEAKER_00 32:22

Um I not for us specifically, but I think it will become table stakes in terms of expectations for members and loyalty members the world over. I think as everyone gets up to speed on their AI adoption utilization, um, that sort of delivery on such a personal level will start to become the norm. And if you're not doing it, you will stand out incredibly poorly. So I I think um it it's a bit of an arms race at the moment of who can practice the fastest to deliver that experience. But once once someone does, then I think um those that don't will will stand out for the wrong reasons. So um coming back to Hyatt's adoption of AI, I'm I'm fortunate that we fully embraced it and all team members now have access to an LLM. Um we're given a couple of options. Um and as we work to integrate those with back-end systems, like we're encouraged daily to see how we could use it to better our operations or our systems, our marketing. Um, and in our large meetings and town halls, uh, we always have examples of people who showcase how they're using it to do their job better and run the business better and drive member satisfaction. So um I think it's a really exciting time to be in hospitality and see how this experience evolves. As I mentioned, AI will not replace hospitality. That is one benefit we have of being in this industry because it is a very tangible experience that um a machine cannot replace, but it can help us do our job so much better in terms of just anticipating guest needs uh and delivering that personalized experience.

SPEAKER_02 33:49

Yeah, I agree that people obviously love dealing with people, and and you know, so much of travel is human connection, and so I couldn't agree with you more. You know, I'm very bullish on travel in the face of AI. I think there's a lot of benefits that we can we can leverage for systems and uh becoming more efficient. We'll be right back.

SPEAKER_01 34:08

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SPEAKER_02 36:34

And now back to the show.

Recognition Status And Member Tiers

SPEAKER_02 36:37

The other thing I wanted to ask you as it relates to an extension of personalization and where this entire series started was status and recognition. And so one of the things I was keen to ask you is how important recognition is compared to other benefits. Because in our very first conversation, it was like, you know, very much status uh is everything. And then our second conversation, it is, you know, it's a combination of status and uh points and miles. And I sounds like you're of a similar mindset when you talk about, you know, there's multiple different uh motivations for people to be loyal. Um does where where does recognition stand in for you? And the reason I'm asking you that as it relates to personalization is that is there something in terms of your membership being a certain tier or are people that you recognize are, you know, they've been with the program 10 years, that there's any sort of recognition that you apply, like a recognition layer, like a status that you think is valuable beyond other tangible benefits.

SPEAKER_00 37:31

Yeah, so uh a couple of things to that. So one, recognition is appreciated across the board, but for some customer segments it matters more than others. Um, we did a great deal of consumer research last year on our membership base um just to better understand psychographics and and motivations across core different audiences. And there is one specific group where recognition and status seeking is really important to them. Um so how we can deliver on that is making sure that they uh again feel recognized and special when they check in. So it's a matter of recognizing them for their UVC membership. For the premium tier members, because our membership does have several tiers, and those that are higher tier, have been with the program longer and are heavy users of the program, of course, we have more data and information about them. So certainly it's about acknowledging and appreciation, appreciating with gratitude their membership, but also um ensuring that that stay we go above and beyond to deliver a heightened experience and that beyond our team, that the the rest of the hotel staff knows that, hey, this is an impressions level member, they're highly valuable to us, but highly valuable to the Hyatt Inclusive Collection. Let's make sure we make their stay extra special. So um, beyond the unlimited vacation club team, there's opportunity for the hotel staff to recognize that member as well. And we're fortunate that in our partnership working alongside the resort teams, high value members like that do get extra uh treatment, special treatment and recognition. I mean, that's the again, back to the value proposition of what they're buying into by buying a membership and certainly at a higher tier, they're sort of getting that fast-tracked elite status um sort of immediately with entry.

SPEAKER_02 39:00

I appreciate your yeah, that's valuable to get your insight on that as well. And and

What’s Next For Subscription Loyalty

SPEAKER_02 39:04

I think, you know, in terms of where things are headed now, given the overwhelmingly people are embracing loyalty as much uh as ever, and a lot of companies are getting more sophisticated about their loyalty or their membership programs. I'd love to get your take, Nick, on where to from here. I go both obviously with your you know uh unlimited vacation club model and and also with the industry at large. So maybe let's talk about uh uh your program first. So tell us a little bit more about what you guys have in store, what the rest of 2026 looks like, and even going into 2027, about how your programs continue to evolve.

SPEAKER_00 39:36

Yeah, it's a fair question. I will say UVC has been very successful in its 15 years of existence. Um, last year we celebrated our 15th anniversary in October. Um that being said, on the Motive Vacation Club, UVC and the ecosystem of the High Inclusive Collection has undergone a tremendous amount of change over the past five to six years through different business acquisitions and is still growing. So as we evolve the program, we have to make sure that we're um doing so in a strategic way, but also in a way that keeps us relevant for future generations. So um, if we look at the needs of a millennial and Gen Z traveler, um, they're obviously looking for something different than uh a boomer generation traveler, for example. So for us, it's about making sure that we evolve in a relevant way to meet changing consumer tastes. Um, fortunately, the all-inclusive segment has continued to grow significantly over the past several years. So um there's a built-in fan base there and audience there, but um we can't rest on our laurels because the things that appeal to one demographic may not appeal to another demographic. So um, for example, you heard me mention um like lifestyle ecosystem experiences. I I see us continuing to grow more in that realm. Unlimited Vacation Club has just barely scratched the surface of that area. And fortunately, we get to tap into a lot of it through the world of Hyatt, but I think there's opportunity to go even deeper in that space for us specifically. So um for the next you know three to five years, I would see growth for us in that sort of curated special access area above and beyond um what we're doing today.

SPEAKER_02 41:11

And one area specifically, obviously, with the subscription or membership-based model, do you think more of those will emerge across the industry in the next few years? Do you see the model that you have more people emulating?

SPEAKER_00 41:20

Yeah, I do think as subscription model businesses proliferate across the board, it's become an accepted and adopted model that people are used to. Um, we do see other hospitality companies experimenting in this space a bit more with sort of different product offerings. So um as we look to evolve our product for future generations, we're also exploring other ways to offer the membership. Um so I think subscription tier programs will continue to grow based on what I'm seeing in the competitive landscape right now. I think it's an area where um uh we were one of the first movers, but um it will continue to grow. So therefore, for us, we have to continue to evolve in a meaningful way.

SPEAKER_02 41:59

And then just in terms of the overall loyalty space in travel, are there any uh larger trends that you're paying attention to that might be worth our listeners uh focusing on? Clearly, obviously you uh you know your stuff and you're staying close to this. But is there anything else that you would call out that would be worthwhile for uh for people to pay attention to?

SPEAKER_00 42:16

Um Yeah, I mean, the the same trends have held the last few years since COVID. I mean, if you look at well-being, that has continued to be a major focus for people across the board. Um, multi-generational travel too has continued to grow by leaps and bounds. So um these are areas fortunately where we are well poised to play. Um, because all inclusive, much like a cruise ship, you can cater to different tastes and needs, and there's different programming for different age groups. When it comes to well-being, that's inherently built into the guest experience as well. Properties have awesome spas um and staff to operate well-being experiences. Um those are two continuing trends that I think have continued to grow exponentially and will more so in the future. One trend that I think all inclusive is starting to take more advantage of um in recent years is just localization and bringing the local culture into the resort experience. Um, I would say in the past there was probably more opportunity to do that, but now guests and members are are specifically requesting and demanding more of that. So the resorts are doing a great job of bringing in local programming for whether it's like a cultural dance or a culinary experience, sort of bringing that location into the property in a more intentional way um is definitely a trend that that our properties are are leaning more into. Okay, perfect.

SPEAKER_02 43:32

All

Favorite Benefits Dream Experiences Wrap

SPEAKER_02 43:33

right, so here we go. So a few fun and kind of personal questions to uh to wrap up. Uh, what's the best loyalty benefit you have personally received as a traveler?

SPEAKER_00 43:42

That's a great question. Um I am more old school when it comes to points. So I've been a Delta medallion member for many years, and the perk that I strive for every year is to reach my medallion status, so I get the global upgrade certificates. Because if I'm flying to Sydney Australia, Like I am later this year, it's incredible to be able to use that Delta One upgrade certificate and get that experience for what will be a 16-hour flight from LAX, for example. Um so it's um despite everything I said about ecosystem and lifestyle, when it comes to me and my own travel consumption, um I'm I'm pragmatic. So I really appreciate uh the that benefit.

SPEAKER_02 44:22

Yeah. You and me are very similar. And whenever I go for my uh you know, my choice of upgrades in the program, I'm always getting I'm always choosing the upgrade points rather than, you know, that's my focus is making sure that I have business class even when I'm traveling. Um what what whenever I'm traveling, especially long haul. Okay, so that's no question number one. Now, you guys have a lot of built-in opportunities and experiences within the Unlimited Vacation Club already. But if there was one that you could add, kind of a money can't buy experience, um, that if you could just like if I could snap my fingers and make it part of the program, or you or may already know what you'd love to be able to add that currently isn't part of it, but what would that be?

SPEAKER_00 44:58

Um I would offer super exclusive, super exclusive, super cool experiences anywhere in the world that could be done like at the last minute. Um, which sounds weird, but it also sounds thrilling. Because if you can imagine that um we do a drop to say, hey, you know, in two weeks we're gonna be doing this amazing activation in Paris with this French chef. Um, even though it has nothing to do with the Hyatt Inclusive Collection, but we know that you value this kind of experience and we put it together for you based on the um the relationships and resources we have. Like that to me is tremendous value that money can't buy that a membership club could give you special access to. So um that for me as a traveler, something I would be incredibly excited about, but I think uh knowing our member base, that's some the kind of experiences they would crave as well. Nice.

SPEAKER_02 45:42

Okay, and here we go. Last one is which brand doesn't have to be travel. If anything, sometimes it's nice to get perspectives, uh fresh perspectives outside of travel. Which brand in or outside of our industry do you think the uh does the best job of creating customer loyalty?

SPEAKER_00 45:57

Um the uh it may sound trite, but um I am a consumer of this. Uh, if I look at Apple, who doesn't have a loyalty program, they create that ecosystem that I referenced earlier where everything is seamless and integrated. And whether I'm on my laptop, my iPhone, my Apple Watch, my iPad, all of the things, um, I can seamlessly move from one to the other. And that sort of lack of friction will keep me in the ecosystem and keep me loyal as long as they keep operating that way. Um, so I don't need to be rewarded with points or bonuses to do that. I just need uh an exceptional experience and that keeps me coming back. Fantastic.

SPEAKER_02 46:34

Well, I've thoroughly enjoyed our conversation. I'm sure our listeners benefited from this discussion as well. I just got one last thing before I close off, which is if our listeners want to connect with you or the team, what would be the best way? I've obviously mentioned the website. I'm sure people will find you on LinkedIn as well. But if uh people want to connect with you for opportunities for partnerships or to collaborate, what would be the best way to do that, Nick?

SPEAKER_00 46:54

Yeah, um, the best way to reach me would be through LinkedIn. So if you search Nick Friend and Hyatt, I should pop up. There, word of warning, there are other Nick Friends out there, most of them in the UK, but if you put in Hyatt, then I should pop up fantastic.

SPEAKER_02 47:04

Well, thanks uh very much for joining us for the Loyalty Series, Nick. Great to have you on and wish you and the team continuous success over the course of the year. Thanks for having me, Dan. Much appreciated. And thanks to all of our listeners for joining us for episode three of our loyalty series. I hope you enjoyed this second part. It was one of our most popular series last year. So we decided to bring it back in partnership with our friends over at Loyalty Status Co. And I'm gonna mention them one more time because if you haven't already checked them out, I definitely encourage you to check out loyaltystatus.com for more information. And they are, of course, the award-winning Taravel Technology Company that helps travel programs drive customer acquisition, growth, and ancillary revenue through their elite status programs. And Loyalty Status Co. also owns and operates statusmatch.com. Thanks again to all of our listeners for joining us. Don't forget we do post clips and highlights on all our social channels. You can find those on Instagram, LinkedIn, and YouTube. And we have our next uh series coming up very shortly on experiences. So we'll look forward to joining you next week. And until then, safe travels.