Many of Moscow's hotels, both Russian- and foreign-owned, have introduced alluring incentive programs to garner a regular clientele and keep business booming

As more hotels sprout up around Moscow, a growing number of establishments are developing incentive programs to attract new customers and to keep those who do check in coming back for more.

International hotel chains have been using incentive systems – similar to airlines’ frequent-flyer programs – to encourage long-term guest loyalty since the 1980s. Russian hotels only picked up on the practice in the mid-1990s, when Western chains began moving into the market.

Among the international chains using them now in the Russian capital are Le Meridien Country Club and the National, which are linked to the Moments.Com system; the Marriott Grand, Aurora Royal and Tverskaya, which use the Marriott Rewards plan; and the Sheraton Palace, which offers the Starwood Preferred Guest program.

What’s the reason for these incentive plans? Studies have shown that money spent on keeping hold of clients is about 20 percent of that needed to attract new ones. A 5 percent hike in spending to help retain customers can bring a rise in profits of 25-125 percent, the studies show. The more a hotel can rely on repeat customers, the less it needs to spend on overall advertising and marketing, analysts point out. In general, the incentive programs are available only to private individuals. A person will get points for checking in and earn additional ones depending on the amount of money he or she spends in the hotel, including outlays on food, phone calls and additional services.

Membership in the programs is free, but clients who go more than a year without earning additional points can be dropped from the plan. Clients who have spent a certain number of days at a hotel qualify for VIP status and are eligible for various privileges, such as guaranteed room reservations in 48 hours, a free room upgrade, free breakfast and late checkout rights.

International chains with hotels in Moscow offer customers a VIP welcome program, including a gift and range of free services, e-mail access, free foreign newspapers and discounts in the hotels’ bars and restaurants. Along with the chains’ global incentive programs, local hotels often add enticements of their own to get repeat customers.

Anna Amosova, spokeswoman for the Le Royal Meridien National Hotel, said that few independent Russian hotels can match Western standards when it comes to frequent-guest bonuses. "The market leaders are really only the hotels that are part of Western chains that have a wide number of incentive programs for clients," she said.

Some Russian hotels may not have specific incentive programs linked to the international chains, but they do strive to take care of regular guests.

The Metropol hotel’s Yekaterina Yegorova said regular guests, who make up 30 percent of total clientele, are given special treatment. "We know what they like," she said, "We know if they prefer one pillow or five, or if they like their mattress hard or soft."

She added that regular clients can upgrade their room category or check out at a later time without an additional charge. "When they arrive at the hotel, we give them a gift, such as a bottle of champagne, a souvenir, chocolates or fruit," she said. "On Easter, we give them a holiday cake and a decorated egg. We also give especially loyal clients discount cards for our restaurants."

The most widespread privilege offered by hotels such as the Mezhdunarodnaya is a free room upgrade. At the Akademicheskaya, guests who stay more than 20 nights a year are guaranteed express registration, daily newspaper delivery and free soft drinks. The Belgrad Hotel offers discounts of 5-20 percent beginning from the second visit, and regular guests get a 10 percent discount.

The Ukraina also has a discount system. Guests earn points toward a 10-20 percent discount on hotel services. Those who spend more than 15 nights at the Iris get an "emerald card" (a "diamond card" for more than 30 nights), which allows them free mineral water in their room, a bathrobe, delivery of the morning papers, gifts from the hotel and late checkout rights.

Regular clients at the Cosmos hotel can get discounts of up to 40 percent. The Cosmos Club incentive program starts from the second visit and gives guests a 10 percent discount on rooms booked at the officially listed rate, and the right to use the hotel’s fitness center. A client who spends $5,000 or more on the hotel’s various services gets a 20 percent discount.

Many Russian hotels say they are working on collecting information about guests’ views and experience, not only to find ways to keep them coming back but to eliminate some of the problems that have earned Russian establishments their bad reputations. Most say they conduct the research with in-house staff, although some are turning to specialized consulting firms for long-term projects.

The Iris, Sheraton Palace and Baltschug Kempinski, the Marriott chain and some others ask guests to fill in detailed questionnaires about their stays. Some conduct direct discussions with customers, either by telephone or at the registration desk. Some hotels, such as Aerostar, the Marriott Grand, Aurora Marriott Royal and Sheraton Palace, organize the occasional free cocktail parity for guests, at which a top manager meets face-to-face with clients.

Incentive programs for regular clients have proved themselves a valuable marketing tool in helping to form a loyal clientele, hoteliers say. But some analysts cast doubt on the real advantages in running costly programs of the sort. Analysts in the United States, for example, suggest that bonus programs, if not carried out properly, do not always justify the investment, and they advise small chains and independent hotels to be cautious about launching them.

But other experts say that, overall, anything that can be done to improve the international reputation of Russian hotels right now is worth the effort.