Hotels are working harder than ever to stand out from the crowd, offering all sorts of creative perks to win their guests over. One of the most effective approaches, given that customers today seek value for their money, happens to be hotel loyalty programs.
Hotel loyalty programs are a genius strategy designed to turn guests into loyal customers while boosting overall hotel occupancy. The importance of increasing customer lifetime value has surged from 16% in 2021 to 29% in 2024, making it a crucial factor for maintaining a profitable hotel chain.
One thing that hoteliers love more than ensuring their guests have the best stay is to make them keep coming back for that experience.
In the competitive world of hospitality, building strong relationships with guests and providing memorable experiences are essential. With so many hotel rewards programs out there, it's natural to have questions. Which one is the best? Are hotel rewards programs worth it? Should you even bother?
In this article, we'll discuss everything about hotel loyalty programs—what they are, how they work, and how they can enhance your business and bring more value to your guests’ stays.
What is a Hotel Loyalty Program?
Hotel loyalty programs, or hotel reward programs, are a clever way for hotels to make their guests keep coming back. Thanks to these hotel rewards programs, whenever guests stay, they receive beneficiary points or credits over their stays that can be used later to enjoy room upgrades, complimentary nights, and other exclusive perks and discounts.
Simply put, loyalty programs for hotels have evolved immensely in the past several years. Now, hotel chains not only provide varied discount offers but also provide guests with a wide range of benefits and personalized loyalty program experiences. It makes travelers choose the same hotel brand for their future stays, as only a few hotels provide a similar experience with additional benefits.
Why are Hotel Loyalty Programs Important?
Every business works hard to attract new customers and keep the ones they already have, all to boost their revenue. For hotel chains, rewards programs are a key part of this strategy. But are they really important? Let's find out.
1. Augmented Guest Experience
Loyalty programs go above and beyond for guests, offering added perks that make them feel truly valued. It’s like giving them a little extra love every time they stay, building trust and a strong bond between the brand and the guests.
Loyalty programs pamper guests with extra perks, building trust and connection.
2. Cost Control
Attracting new customers can cost up to five times more than retaining the existing ones. Hotel loyalty programs are one of the most effective strategies to get repeat customers and promote loyalty. It saves hotels a lot of money.
3. Valuable Insights
These programs aren't just about points; they're also about knowing guests better. Hotels get a backstage pass to understand what guests like, what they love, and what they want their stay to be like. This can help improve services and, in turn, earn their customers’ trust. Plus, it can also be used to acquire new customers.
4. Brand Loyalty
Hotels utilizing reward programs successfully create brand value in the customer's minds, allowing them to associate their loyalty to the brand. Loyal customers generally choose the same brand for their future stays, and this directly increases hoteliers' revenue.
5. Increased Customer Spend
When guests feel valued, they're more likely to splurge a little extra, compared to when they visit for the first time. Using these programs allows brands to develop loyalty among customers because they receive genuine value.
How Do Hotel Loyalty Programs Work?
Hotel loyalty programs are a strategic move where hotel chains reward their guests with some additional benefits to promote customer loyalty. Let’s explore the way in which most hotel rewards programs work.
1. Membership Enrollment
When guests sign up for hotel reward programs, they usually do it through the hotel's website or at the front desk during their stay. This allows customers a chance to explore and be part of the hotel rewards program list and reap several benefits.
2. Loyalty Points
Once a customer is part of the program, they earn points for every single spend. It includes stays, dinners, spa treatments, and more. Collecting these points allows guests to have varied additional monetary or service benefits.
3. Tier Levels
Hotel loyalty programs often come with levels like Silver, Gold, Platinum, and Diamond. The higher the guest climbs, the fancier the rewards. However, in some hotels, travelers have to collect more points or make stays more often to achieve higher tier levels.
As guests level up their hotel loyalty points, perks get fancier!
4. Points Redemption
When guests acclimate to a substantial number of points and credits, they can claim a number of benefits, including free nights, airline miles, complimentary amenities, gift cards, merchandise, and much more.
5. Increase Referrals
Under loyalty programs at hotels, guests are treated with more care and provided with immense benefits. It increases the overall staying experience for customers and increases their trust and loyalty to the brand. As per a Forbes survey, about 70% of the customers recommended a brand with good loyalty programs. Ensure that you thoroughly understand what your guests want in rewards.
To join hotel loyalty rewards programs, customers are required to provide their personal details. It helps hotels gain valuable insights that can be utilized for enhancing customer service, anticipating needs, and developing effective sales strategies. Hence, these programs are beneficial for both parties, hotel and guests.
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Looking for the best hotel loyalty programs for the year 2026? Let’s check out some of the best hotel loyalty program examples.
1. Wyndham Rewards
Wyndham Rewards tops the list of hotel loyalty programs, especially for travelers looking for stays in small-town America who are not very interested in luxury accommodations. Wyndham consists of over 9,000 hotel properties across 95 countries globally, including 24 brand chains like Wyndham Grand, La Quinta, and Days Inn.
Wyndham Rewards consists of the most elementary award chart across other hotel loyalty programs
Members joining this loyalty program can earn either 10 points for each dollar spent or a flat 1,000 points per stay, whichever is higher. Moreover, Wyndham also provides members with three co-branded credit cards issued by Barclays, allowing them to earn free nights. On every anniversary, cardholders receive around 7,500 to 15,000 points. Wyndham’s economical brands are spread almost everywhere, allowing travelers to find stays even in places where Hyatt or Marriott properties are not available.
2. Marriott Bonvoy
Marriott Bonvoy is one of the largest hotel loyalty programs in the world, with over 10,000 properties, including 30 affiliated brands like The Ritz-Carlton Hotels & Resorts, St. Regis Hotels and Resorts, Westin Hotels and Resorts, and more. Active members of Marriott Bonvoy can earn 10 points for each dollar spent at most hotels. Award nights start at 5,000 points, although the redemption rate varies by hotel and season.
Marriott Bonvoy offers a range of benefits and rewards to the potential members over every dollar spent
Members can use their points for hotel stays, room upgrades, retail gift cards, rental cars, cruise vacations, and attending concerts and sporting events. Additionally, Marriott Bonvoy members can transfer their points to 40 airline partners, such as Alaska Airlines Mileage Plan and Asiana Club.
3. IHG One Rewards
InterContinental Hotel Groups (IHG Hotels & Resorts) is the best hotel rewards program, consisting of 6000+ properties across 100+ countries. It provides services in major cities like NYC, London, Chicago, San Francisco, and Shanghai. This loyalty program is associated with numerous renowned hotel chains like Holiday Inn, Kimpton, Crowne Plaza, Regent, etc.
IHG Hotels & Resorts offers three credit cards, including Traveler Credit Card, Premier Credit Card, and Premier Business Credit Card. IHG One Reward Traveler Credit Card comes under free hotel rewards programs that let guests earn 5 points per dollar spent at IHG hotels and resorts, and 3 points per dollar spent at restaurants, gas stations, and more.
IHG One Rewards has recently renewed its hotel loyalty programs considering new elite status benefits
As per hotel rewards point comparison, members attain the most benefit in the other two (paid) credit cards, consisting of a $99 annual fee, allowing members to earn 10 points for each dollar spent on IHG hotels and resorts and 5 points on each dollar spent over restaurants, gas stations, etc.
4. Hilton Honors
Hilton Honors is one of the most populous hotel loyalty programs, with 200 million active members. It has 7,600+ properties across 120 countries and territories globally, including 24 brands like Waldorf Astoria, DoubleTree, Conard, Hamptons, etc. This is the best hotel rewards program for business and leisure travelers who take frequent flights and stay in big cities like the U.S. across the world.
Hilton Honors has recently made multiple improvements in its loyalty programs to enhance overall user-experience.
This program allows regular members to collect 10 points on each dollar spent. Members must consider associated credit cards like Hinton Honors Surpass Amex or Hilton Honors Aspire Amex to claim additional bonuses with elite status. Moreover, they offer a free weekend award night every year that kicks off from 5,000 to 120,000 points apiece, considering the hotel and travel season.
5. World of Hyatt
World of Hyatt is another major hotel rewards program and is best suited for leisure and business travelers, allowing them to visit renowned locations across the globe. Hyatt consists of 1,300 hotels and resorts across 76 countries, including 25 brands like Andaz, Thomposon, JdV by Hyatt, etc. These hotels are located in major U.S. destinations such as Atlanta, Chicago, NYC, San Francisco, and more.
Hyatt has recorded relatively small but growing footprints and serves the best elite benefits.
Hyatt members may get 5 points for each dollar spent and offer additional bonuses for elite members. Members have to pay $95 annual fees to get the World of Hyatt Credit Card. It provides 30,000 bonus points to the members who spent $3000 within their first three months. Moreover, the World of Hyatt Business Credit Card has an annual fee of $199, and members can get 60,000 bonus points after $5000 spent within the first three months from the day the account opened.
Hotel Loyalty Programs Advantages
Here are some of the major hotel loyalty programs benefits:
1. Increase Revenue
Hotel loyalty programs significantly retain more customers than usual, generating higher returns for the brand. These reward programs promote loyalty among customers, leading to more frequent bookings, higher average spending, and increased customer lifetime value.
2. Boost Direct Bookings
Customers who repeatedly stay at the same hotel generally prefer to book directly rather than through an OTA. Hence, loyalty programs can significantly reduce OTA commission fees and minimize the brand’s customer acquisition cost.
3. Enhanced Guest Retention
Implementing loyalty programs for hotels encourages guests to return to the same hotel due to the exceptional services and benefits offered. It builds a loyal customer base that is less likely to be swayed by competitors, directly enhancing guest retention in the hotel industry.
4. Strong Customer Database
Hotel loyalty rewards programs provide brands with valuable insights into potential customers. This data can be used for efficient customer relations management, allowing brands to interact better with guests and anticipate their needs and wants.
5. Revenue Management Ally
Every business employs revenue management strategies to optimize profitability, and the hotel industry is no exception. Loyalty programs allow revenue managers to secure long-term gains. Therefore, combining CRM and RM strategies can increase hotel occupancy, even during low-demand periods.
Are Hotel Loyalty Programs Worth It?
Whether a hotel loyalty program is worth it or not really depends on factors like travel habits, budget, and personal preferences. These programs offer travelers a chance to earn points and enjoy free stays, upgrades, and other benefits. Plus, there are often perks like early check-ins, late checkouts, complimentary breakfasts, and special access to hotel lounges. Some hotels even have partnerships with popular airlines, car rental companies, and other travel brands, which can help save a lot of money.
Hotel rewards are worth it for frequent travelers seeking perks like early check-ins, late checkouts, complimentary breakfasts, and much more.
While these programs sound great, they do come with a few drawbacks. To earn the necessary points, guests often have to spend more than they might otherwise. Additionally, being loyal to one hotel chain can limit travel options, making it harder to find the best deals every time.
In our view, hotel loyalty programs are great for frequent travelers. If guests are okay with sticking to the same hotel brand to enjoy the perks, these programs can be very rewarding.
Thinking about creating a loyalty program for your hotel? We got your back. Reach out to a HotelMinder experts now!
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Written by Swati Mishra
Swati is an accomplished content marketing specialist who focuses on developing valuable and practical content that addresses the concerns of hospitality businesses end-users.
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