Do you have a clear understanding of the tax implications linked to loyalty programs?
In the world of hospitality, loyalty programs have become indispensable tools for fostering customer retention and brand loyalty. How brands fund these programs is important to viability and overall ROI but also creates tax implications. A prominent recent case involving Hyatt Hotels revealed the complexities of loyalty program taxation.
In this article, we delve into the intricacies of loyalty program tax implications, using Hyatt's case as a prime example, and explore what this might mean for other companies in the hospitality, restaurant and other related industries.
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