The Ultimate Guide to Revitalizing Guest Loyalty and Revenues in 2023

Free guide reveals everything you need to know to engage guests and keep them coming back

They say that the only constant in life is change, and the hospitality industry is no exception. The hospitality industry finds itself at the mercy of ever-changing guest trends and preferences that, often, can only be achieved at scale with the help of continued innovation and new-age technology. And yet, the hospitality industry is notorious for its slow adoption of new tech, often holding on to legacy systems and processes long past their suggested expiration date. Unfortunately, hotel loyalty programs have suffered the brunt of this consequence; while travelers seek forward-facing hospitality brands, traditional loyalty programs remain buried in the limitations of the past.

Across industries, marketers and business owners find themselves ruminating over the same question – is loyalty dead? Are modern customers incapable of exhibiting loyalty to the brands they purchase from? If not, why does customer loyalty feel increasingly elusive, if not entirely absent from the marketplace? The fact is that any hotel that insists “loyalty is dead” simply hasn’t bothered to revamp or evolve its loyalty program. The only loyalty programs that cease to matter in today’s landscape are those which fail to delight and enhance a guest's experience in a measurable, meaningful way.

According to Skift Research, the rate of leisure travelers who were loyalty members of the hotel they stayed in during their most recent trip went from 43 percent to 47 percent between 2020 and 2021. Moreover, members contribute between 30 percent and 60 percent of room revenue and tend to pay higher average daily room rates (ADR) than non-members. In addition, 75% of American consumers say they’re more likely to be loyal to brands that understand them personally, and only 42% of brand executives think their customer loyalty strategies are effective.

In 2020, Mastercard also reported that most US adults (90%) belong to at least one loyalty program, and 53% are in three or more – yet many brands struggle to find ways to engage customers. In 2019, Mintel reported that, although 90% of US adults belong to at least one loyalty program, more than half of loyalty memberships are inactive. Often, this lack of engagement and satisfaction can be attributed to the simple fact that loyalty programs don’t offer incentives guests actually care about, or, if they do, those incentives are locked behind a tier that will take thousands of points to reach. The worst part? The points might expire before a guest even has a chance to use them.

There is no denying it – loyalty programs are a worthy (if not entirely essential) investment. They just often hit the mark. For years, the “points-based” loyalty system has reigned supreme – not due to perceived excellence or superiority to other formats, but simply because it was what hospitality brands had always done. Yet, it’s no secret that this traditional approach to guest loyalty leaves much to be desired; it often fails to delight (or even satisfy) guests and often fails to derive ROI and benefit a hotel's bottom line in any meaningful way. This begs the question – why haven’t we done anything to change it? Is there not a better way?

Fortunately, there is. Finally, hotels can offer guests personalized rewards and instant gratification rather than hard-to-redeem points. This shift in the legacy loyalty model is not only good business – it’s the (lucrative) future of guest loyalty.

Download The Ultimate Guide to Revitalizing Guest Loyalty and Revenues in 2023.