In this Climate, Guest Recognition isn’t Optional. It’s Oxygen.

You can almost hear it in the lobby. A little quieter than last quarter. Fewer wheels spinning on carry-ons. A little less bustle at check-in. The US hotel industry isn’t in a free fall, but it’s definitely hitting the brakes.

Demand has softened. The why is a messy stew: global uncertainty, tariffs throttling corporate travel budgets, inflation making even the most loyal leisure guests pause before clicking “book now.” Domestic travelers are cautious, international guests are calculating exchange rates with a raised brow, and meetings and events are being reevaluated in favor of virtual alternatives.

This isn’t a unique cycle, of course. Hospitality is no stranger to demand valleys. But unlike in past downturns, hotels today are facing a guest with sharper expectations and more options than ever. The OTAs remain aggressive. Airbnb is a viable competitor, even in markets that once leaned heavily on branded loyalty. And travelers, especially the digitally fluent ones, are deeply tuned into value and experience.

So in this softening demand landscape, we’ve got to ask: How do hotels keep their heads above water while also staying relevant, booked, and beloved?

Here’s the unglamorous truth: now is the time to double down on loyalty. Not just any loyalty. Not the points hoarder from 2012, who begrudgingly tolerates a hotel chain in exchange for a free night sometime in the next fiscal year. No, the loyalty of 2025 is built on real-time value, emotional connection, and the feeling that this place sees me.

Let’s unpack it.

Loyalty Is Not a Line Item, It’s a Lifeline

When RevPAR starts to dip, the gut reaction is often cost-cutting. Slash the ad budget. Pause the tech rollout. Consolidate services. But the hotels that weather downturns best aren’t necessarily the ones with the deepest cost cuts. They’re the ones that invest in the right levers, those that grow the guest relationship and increase share of wallet.

Loyalty is that lever.

It’s the difference between a guest who hesitates and one who rebooks. Between a call center save and a lost lifetime value. Between transactional and emotional.

And no, we’re not talking about plastering a “member rate” badge on your booking engine and calling it a day. True loyalty today isn’t about the label. It’s about relevance. Recognition. Immediacy.

This is where many traditional programs falter. The guest spends $1,000 and gets… points. Maybe enough for a coffee next quarter. And if they’re lucky, someone at the front desk thanks them for being a Gold Elite Tier 2. Warm fuzzies? Not exactly.

Guests aren’t patient anymore. They want to feel seen and appreciated in the moment. Which is exactly where Laasie steps in.

Real-Time Recognition: Because Delayed Gratification Is So Last Season

At Laasie, we believe in the power of instant. Our Retain platform isn’t a gimmick or a plug-and-play widget. It’s a dynamic rewards marketplace that recognizes a guest’s loyalty... right now.

Book direct? Boom: choose a reward you actually want. Amazon gift card, dining credit, ride share. Something tangible. Something immediate. And best of all, something that doesn’t require them to jump through months of hoops to access.

In a softer market, this immediacy becomes even more powerful. When guests are choosier and booking windows shrink, giving them something they can use today helps them say yes now, not three weeks from now. It's not bribery. It’s relationship building.

Because when you recognize loyalty at the time of booking, you’re telling your guest: we value you, not some theoretical version of you three stays from now.

Your Loyalty Program Is Your Rate Strategy’s Best Friend

Here’s another truth bomb: you can’t discount your way to profitability. That game always ends in a race to the bottom. But you can add value in a way that makes your direct booking strategy both defensible and desirable.

This is where a loyalty program does its best work. It creates a meaningful differentiation between booking direct and booking through a third party. Because let’s face it, the OTAs are out there waving the lowest price banner, armed with an ocean of inventory and AI-optimized conversion funnels.

You can’t out-tech them on budget. But you can out-human them. Out-personalize them. Out-reward them.

With Retain, your direct bookers get an instant reward for choosing your hotel. That’s not something Expedia can replicate without breaking their model. And because Retain seamlessly integrates into your CRS, PMS, and CRM, it allows you to tailor the experience without the bloat.

Better yet, we help you own that guest relationship. The data, the contact, the recognition... it all stays with you. So when demand softens, you're not stuck wondering who booked what or relying on a third party to save your shoulder season.

What About Guests Who Aren’t Even Booking Yet?

A softer market means more lookers, fewer bookers. It’s like fishing in a pond where the fish have suddenly decided they’re full. But here’s the thing: the right bait still works.

That’s why we built Laasie Convert. It’s the gentle nudge, the persuasive whisper that turns “maybe” into “yes.”

Here’s how it works: your potential guest visits your website, browses around, considers a room… and then hovers near the “x.” Before they bounce, they’re offered an exclusive reward for completing their booking now. Not next week. Not after three reminder emails. Now.

It’s subtle. It’s elegant. It’s highly effective. And during a down period, it’s a crucial tool for tipping the scale.

We’ve seen a 43 percent lift in direct conversion for hotels using Convert. That’s not magic. That’s behavioral economics and smart technology, working together to make your offer too good to ignore.

Service Recovery That Actually Recovers the Guest

Let’s pivot to another pain point that becomes extra sharp during soft periods: guest dissatisfaction.

When demand is strong, you can absorb a few hiccups. A room not ready. A poor check-in. A slow breakfast buffet. But when demand drops, every guest becomes exponentially more valuable—and more vulnerable to defection.

You can’t afford to lose anyone.

Which is why Laasie Flex exists. It’s your “make it right” superpower. Had a hiccup at check-in? Instantly send a guest a digital reward, directly to their phone. Room wasn’t ready? Boom: here’s $20 to grab a coffee on us while we fix it.

No escalation. No long-winded apology. No comping rooms like it's 1998.

Flex gives your team the power to repair loyalty in real time, without waiting for the survey to come back or for a TripAdvisor meltdown to begin. Because again, it’s not about refunding money. It’s about recognizing humanity. Acknowledging friction. And doing something about it immediately.

In a downturn, it’s these moments that separate the hotels that survive from the ones that deepen guest love and come out stronger on the other side.

Loyalty Isn’t Dead. But It Is Evolving

We’ll say it again for the folks in the back: loyalty is not dead.

It’s just changing shape. And it’s moving faster than ever.

Today’s traveler is not content to play the long game. They want value upfront, not someday. They want to be recognized, not categorized. They want flexibility, not friction.

And they need that recognition even more when travel feels uncertain, budgets are tight, and every booking is a carefully weighed decision.

Hotels that embrace this evolution—by making loyalty immediate, by making rewards relevant, and by making recognition effortless—are the ones that will thrive even when the market cools.

The good news? You don’t have to build this from scratch. That’s what we do. We’re Laasie. And we believe loyalty is about action, not abstraction.

When Demand Falls, Rise to the Occasion

The temptation during a demand slump is to wait it out. Cut costs. Hope for next quarter. But hope is not a strategy. Relationships are.

Loyalty is not just a marketing tactic or a CRM checkbox. It is your hedge against volatility. Your multiplier on every dollar spent. Your secret weapon when everyone else is just waiting.

In this climate, guest recognition isn’t optional. It’s oxygen.

So whether you’re looking to reimagine your loyalty program, convert more direct traffic, or give your operations team the tools to win back a frustrated guest, the question isn’t whether you can afford to invest in loyalty right now.

The question is whether you can afford not to.