Hotel-Airline Partnerships Make Happy Customers

(MoneyWatch)  In the latest in travel-company partnerships comes an announcement that hotel company Hilton Worldwide and airline Virgin America have teamed up to give their loyalty reward program members cross-company (and cross-promotional) points. Members of either Hilton HHonors or Virgin America's Elevate program can now earn points toward flights on Virgin America when staying at a participating Hilton hotel.

This isn't the first time a hotel company has partnered with an airline to give its repeat customers more options in redeeming their loyalty reward points. Wyndham Hotel Group and Aeromexico also recently announced (at nearly the same time as Hilton and Virgin America) that they would be offering a similar program, with stays at Wyndham hotels counting toward flights on Aeromexico.

While we know that increased options make consumers happy, does that happiness translate into more business? I've discussed this idea before, and the short answer seems to be yes, but most likely not by a lot. So why bother? Because while companies may not make a ton of money from their loyalty programs, these partnerships and other options for redeeming points don't cost companies a lot, either. Give a little, and customers will stay, if not necessarily come in droves. And with the holiday travel season upon us, offering guests more incentive to come back and stay with your hotel can't hurt.