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Travelers across the world are willing to spend more on travel experiences, with the brands they trust, if they get the right value for their buck.
A recent study found that about two-thirds of consumers would engage more with their hospitality loyalty programs if offered better discounts, and 49% said saving money on travel was the most valuable aspect of their loyalty programs.
Hotel loyalty programs have evolved from simple rewards systems to powerful tools for driving customer engagement, loyalty, and revenue for hotels and lodging brands worldwide.
In this blog, we will discuss the what and how of hotel loyalty programs, list the top programs, and discuss key trends for 2025.
This guide covers everything you need to know, whether you're a hotel manager looking to revamp your loyalty strategy or a guest seeking to maximize your travel rewards.
What is a Hotel Loyalty Program?
A hotel loyalty program is a structured rewards system that encourages repeat stays and direct bookings by offering guests incentives such as points, discounts, exclusive perks, and personalized experiences. They are usually free to enter for guests and have multiple levels.
Most large hotel chains such as Hilton, Hyatt, Marriott, etc. operate loyalty programs to build long-term relationships with their guests.
Hotel loyalty programs increase brand loyalty, retain existing customers, and reduce reliance on third-party booking platforms. They help hotels drive repeat customers and improve profitability.
How Hotel Loyalty Programs work
There are various hotel loyalty programs, but most work on a simple premise: Hotel guests earn points or status levels based on their spending at the hotel, in-house restaurants, or the number of nights they stay.
The points earned then can be redeemed for benefits like:
- Free or discounted hotel nights
- Room upgrades
- Late check-out and early check-in
- Exclusive member-only deals
- VIP treatment (e.g., complimentary breakfast, free round of drinks, lounge access)
Types of Hotel Loyalty Programs
Different hotel loyalty programs are designed depending on the goals of the hotel. The following are some common types of hotel loyalty programs:
Points-based programs
In these loyalty programs, guests accumulate points for every dollar spent on hotel nights, dining, etc., for a particular chain of hotels (e.g., Marriott Bonvoy, and Hilton Honors).
Tiered programs
As they increase their membership levels, travelers unlock better perks and incentives. They accumulate “tiered” nights or “status points” for every stay in such programs.
For instance, the Marriott Bonvoy program has tiers ranging from “Member” to “Ambassador Elite,” each tier has perks.
Subscription-based loyalty
Paid memberships offering guaranteed perks (e.g., FoundersCard for hotels or Accor Plus program for Accor chain of hotels)
Experience-based rewards
Guests earn personalized perks like spa treatments or adventure tours instead of just points.
Coalition loyalty programs
Hotels partner with airlines, restaurants, credit card companies, and retailers to offer broader rewards. For instance, Accor and Qatar Airways allow hotel guests to earn rewards simultaneously and Avios points on their holidays and flights.
Why Hotels Need a Strong Loyalty Program
A smartly designed hotel loyalty program is more than just a marketing tool. The program is a long-term strategy for driving guest engagement, increasing revenue, and reducing dependency on third-party booking platforms.
Let’s understand why every hotel should invest in building a strong loyalty program:
Promoting repeat buyers
The cost of acquiring a new customer is 5 to 25 times more than retaining an existing one. The same is true for the hotel industry. An efficient loyalty program rewards repeat guests, increasing their lifetime value (LTV) and turning them into long-term brand advocates.
This saves hotels millions of dollars they would otherwise spend on ads, OTA commissions, and discounts to attract new guests.
When travelers know they will be recognized and rewarded, they will likely stay within the same hotel chain, even if a competitor offers a slightly lower rate.
Driving direct bookings
Online travel agencies (OTAs) charge hotel commission fees to make every booking. These fees can range from 15% to 20% of the cost of a hotel room night.
A loyalty program pushes guests to book directly through the hotel’s website or app by offering:
- Exclusive member rates
- Bonus points on direct bookings
- Giving an extra night
- Complimentary services (e.g., free Wi-Fi, breakfast, or room upgrades)
This reduces commission costs, helping hotels improve margins while strengthening customer relationships.
Enhancing guest satisfaction
Hotel loyalty programs offer their most valued guests with benefits, such as:
- Early check-in and late check-out
- Complimentary upgrades
- Exclusive lounge access
- Free welcome amenities
Hotels should create an emotional connection with repeat guests and make them feel special, increasing the likelihood of positive reviews and word-of-mouth recommendations.
Leveraging customer data
With all the customer information being collected, hotels should use it to provide personalized offers to guests based on their existing usage.
The information will help them suggest future stays, send targeted promotions, and enhance guest experiences, leading to higher satisfaction and retention.
Loyalty programs provide hotels with guest data from their booking habits to preferred room types, dining choices or any special requests they generally have (e.g., extra pillows, dietary preferences).
Hotels can use data from their loyalty programs to create personalized experiences, offering each guest a unique, tailored experience.
Increased customer retention
Studies show that loyalty members spend 20-40% more with a brand they trust than non-members. Hotels can increase overall revenue by keeping guests engaged without increasing acquisition costs.
Loyal hotel guests are more likely to spend on additional services, such as on-site dining and room service, spa treatments and wellness services, premium Wi-Fi, entertainment packages, and paid room upgrades.
Best Hotel Loyalty Programs in 2025
Over the years, several hotel loyalty programs have distinguished themselves by offering their members exceptional value, extensive benefits, and innovative features.
Hotel loyalty programs prioritize rewards such as free nights and flexible redemptions and see more customer loyalty. A smartly created hotel loyalty program can enhance member satisfaction and drive sustained engagement.
Here's a list of the top five hotel loyalty programs:
Marriott Bonvoy
Marriott Bonvoy comprises over 30 brands with over 9,000 properties in 142 countries and territories. Membership has five elite status levels, and perks include room upgrades, lounge access, and nightly upgrade awards.
Marriott Bonvoy loyalty program members also receive complimentary nights when booking five consecutive reward nights. Bonvoy members can transfer their points to 39 airline partners through airline partnerships.
Hilton Honors
Under the Hilton Honors membership there are over 6,500 properties across 18 brands in 119 countries and territories.
Hilton Honors members enjoy various perks with every stay, from complimentary breakfast to late check-out. Guests can redeem their points or points+cash to book award nights at any Hilton property directly on the Hilton Honors website or app.
World of Hyatt
World of Hyatt loyalty program covers over 1,000 properties across 20 brands across 65 countries.
Guests who sign up for the World of Hyatt membership at various point thresholds receive suite upgrades and club lounge access.
Hyatt's award chart for point redemptions is transparent and predictable, making it easy for members to understand and claim their rewards. To expand redemption options for its members, Hyatt collaborates with brands like Small Luxury Hotels of the World.
IHG One Rewards
IHG One Rewards covers over 6,000 properties across 17 brands globally. IHG, one rewards provides an annual free night certificate for selected co-branded credit cardholders.
IHG One Rewards members booking four-night reward stays receive the fourth night free. The loyalty program has no blackout dates and allows members to use points for various rewards, including merchandise and experiences.
Wyndham Rewards
Wyndham Rewards includes over 9,000 properties across 20 brands in over 80 countries.
Their hotel loyalty program offers free nights for 7,500, 15,000, or 30,000 points, simplifying the redemption process. A flat-rate structure makes it easy for members to understand and plan redemptions.
Wyndham Rewards' collaborations with Caesars Rewards enhance earning and redemption opportunities. The program also allows members to redeem points for free nights or discounted rates, combined with cash.
How to Design and Launch a Hotel Loyalty Program
A successful hotel loyalty program is developed by deeply understanding customer preferences, strategically using technology, and continuously optimizing.
These help craft a personalized and engaging rewards experience that drives sustainable revenue growth for the hotels, increases repeat business, and enhances guest satisfaction.
Below are the steps to design a hotel loyalty program:
Step 1: Identify your target audience
The first step to running a successful hotel loyalty program is understanding who your guests are and what they value.
Hotels segment their audience as business travelers vs. leisure travelers, frequent guests vs. occasional guests, and budget-conscious guests vs. luxury seekers.
The insights are collected through guest feedback, booking data, and industry trends to tailor the most suitable incentives and rewards for each segment.
Step 2: Opt for the right loyalty structure
Hotels choose from various loyalty structures depending on brand and guest preferences. Ensure the hotel loyalty plan rewards your customers and encourages them to make additional purchases.
Loyalty programs focus on earning redeemable points for free nights, upgrades, or exclusive perks. They can also have a structure similar to airline programs, where guests unlock better rewards as they reach higher tiers or combine both.
Choosing the right hotel loyalty program structure ensures long-term engagement and aligns with your hotel’s brand positioning.
Step 3: Leverage technology for seamless program management
After you have discovered your target audience and know which hotel loyalty programs you are going for. It is time to choose an AI-powered loyalty management solution like Loyalife, which will make your hotel loyalty programs user-friendly, easy to understand and efficient.
An innovative hotel loyalty management tool will:
- Allow guests to track their rewards, receive offers, and manage bookings
- Help personalize offers based on guest history, insights, and preferences
- Centralize all the guest data to provide a consistent and personalized experience across stays
- Ensures smooth transactions and automatic point accumulation
Step 4: Promote your program to maximize engagement
A well-designed program won’t succeed without proper promotion. Some hotel chains train staff to inform existing guests about the benefits of enrolling in the program.
Top hotel loyalty programs offer limited-time bonuses, such as double points for early sign-ups, to entice customers.
Another way is to utilize social media and email marketing to keep members engaged and updated.
Step 5: Measure success of your hotel loyalty program
It is critical to evaluate the success of your loyalty program regularly and further evolve it based on performance metrics and guest feedback.
Some essential key performance indicators (KPIs) to track include:
- Repeat Booking Rate: Percentage of guests who book multiple stays
- Engagement Rate: How often members use the loyalty program
- Redemption Rate: Percentage of earned points being redeemed
- Guest Satisfaction Scores: Feedback from surveys and reviews
Assessing these KPIs regularly is essential for the success of any hotel loyalty program. This allows hotels to fine-tune their programs for maximum effectiveness.
Step 6: Align rewards to form connections
A one-size-fits-all approach doesn’t work in hospitality. Hotels should offer rewards that cater to individual guest needs.
For instance, a business traveler would require an early check-in, complimentary breakfast, and workspace access. Groups or families traveling together will need more discounts on adjoining rooms, free meals for children, and activity passes.
Hotels often have customer data about birthdays and anniversaries, they can leverage this data to offer complimentary spa treatments, room upgrades, or a private concierge service. This will leave a lasting impact on custom, pushing them to choose your hotel chain for their upcoming stay. Customers and will also become your brand's positive advocates.
Top Hotel Loyalty Program Trends to Look Out for in 2025
Traditional points-based models will give way to more dynamic and personalized experiences, leveraging AI-powered loyalty program solutions and partnerships to drive engagement in 2025.
Here are some key emerging trends shaping the future of hotel loyalty programs:
Hyper-personalization through AI
Personalization drives repeat purchases. Infact, as per a study, 60% of consumers will likely buy from a brand again after a personalized experience.
Hotels can leverage AI and machine learning to analyze guest preferences, behaviors, and booking patterns to provide personalized suggestions.
Tailored promotions, room upgrades, and personalized recommendations enhance guest satisfaction and loyalty.
An AI hotel loyalty management solution will help you suggest exclusive deals based on past stays or offer customized experiences like spa treatments or local excursions.
Subscription-based loyalty models
Subscription-based loyalty programs are gaining traction. These programs offer guests guaranteed perks for a fixed fee and make them feel like members of an exclusive club.
Programs like Marriott Bonvoy’s paid elite membership and FoundersCard provide members exclusive discounts, priority services, and unique travel benefits. These models create a steady revenue stream for hotels while offering predictable value to frequent travelers.
Loyalty beyond the stay
Hotels are expanding their rewards ecosystem to include non-stay-related purchases. Guests can redeem the points earned for dining, retail shopping, and curated local experiences.
This increases engagement and provides members continuous value, even when not traveling.
Community engagement
Hotels are fostering brand loyalty through social and community-driven programs that reward guests for sharing their experiences online, referring friends, and participating in brand campaigns.
Sustainability and eco-incentives
With the growing emphasis on sustainability, hotels will introduce green loyalty rewards.
The rewards encourage guests to make eco-conscious choices, such as avoiding daily housekeeping, using digital check-ins, or choosing energy-efficient accommodations.
Partnership ecosystems
Hotel loyalty programs will collaborate with airlines, other retailers, dining establishments, and entertainment providers to offer rewards and reach new audiences.
The partnerships allow existing members to earn and redeem points across multiple channels, creating a seamless and valuable loyalty experience. At the same time, they help hotels onboard new members by using the partners’ reach.
Build How Loya life Can Help You Build a High-Impact Loyalty Program
Designing a successful hotel loyalty program requires advanced technology, data-driven insights, and seamless guest engagement.
With Loyalife's loyalty management solutions, you can do all this and much more to enhance customer loyalty and maximize guest retention.
- Easily set up and manage your loyalty program with an intuitive, automated dashboard.
- AI-powered analytics tailor rewards and experiences to individual guest preferences.
- Connect with guests across mobile apps, social media, and in-person interactions.
- Integrate with global brands, airlines, and retailers to offer extended benefits.
Build loyalty programs that are efficient, data-driven, and deeply engaging with Loyalife.
