Customer loyalty has always been the backbone of the hospitality industry, but in 2025, it has evolved into a dynamic challenge. Travellers now expect more. Digital convenience, personalisation, and eco-awareness shape this. A 2023 McKinsey study found that 78% of customers expect consistent experiences across physical and digital channels. Also, 59% would switch brands after one or two negative experiences.
In hospitality, where guest loyalty directly impacts repeat bookings and revenue, the stakes are high. As we enter 2025, the question is: How can hotels meet changing guest expectations and maintain loyalty?
Table of contents
Why customer loyalty is evolving in 2025
The cost of not prioritising customer loyalty
Top strategies to build customer loyalty in hospitality in 2025
Measuring and improving customer loyalty
In hospitality, where guest loyalty directly impacts repeat bookings and revenue, the stakes are high. As we enter 2025, the question is: How can hotels meet changing guest expectations and maintain loyalty?
Table of contents
Why customer loyalty is evolving in 2025
The cost of not prioritising customer loyalty
Top strategies to build customer loyalty in hospitality in 2025
Measuring and improving customer loyalty
Why customer loyalty is evolving in 2025
The foundation of loyalty is shifting from transactional rewards to emotional connections. Today’s guests are driven by personalised, meaningful experiences rather than traditional points-based programs.
Changes in guest behaviour
The rise of Gen Z and millennial travellers has brought an entirely new perspective. A 2024 Deloitte study found that 83% of Gen Z travellers say their loyalty depends on a brand's ability to meet their preferences. Also, 74% seek bundled services, like stay-and-dine packages. These groups also value digital convenience, with 85% favouring hotels that offer seamless online booking and digital interactions.
The role of technology
Technology has fundamentally altered how guests perceive and engage with hotels. Contactless check-ins, digital menus, and pre-arrival communication have set new benchmarks. Hotels that fail to adopt these tools risk losing guests who expect frictionless experiences.
Sustainability as a loyalty driver
Travellers are increasingly prioritising sustainability. Booking.com’s 2024 Sustainable Travel Report says 76% of global travellers prefer eco-friendly hotels. Also, 39% will pay more for sustainable accommodations.
Changes in guest behaviour
The rise of Gen Z and millennial travellers has brought an entirely new perspective. A 2024 Deloitte study found that 83% of Gen Z travellers say their loyalty depends on a brand's ability to meet their preferences. Also, 74% seek bundled services, like stay-and-dine packages. These groups also value digital convenience, with 85% favouring hotels that offer seamless online booking and digital interactions.
The role of technology
Technology has fundamentally altered how guests perceive and engage with hotels. Contactless check-ins, digital menus, and pre-arrival communication have set new benchmarks. Hotels that fail to adopt these tools risk losing guests who expect frictionless experiences.
Sustainability as a loyalty driver
Travellers are increasingly prioritising sustainability. Booking.com’s 2024 Sustainable Travel Report says 76% of global travellers prefer eco-friendly hotels. Also, 39% will pay more for sustainable accommodations.
The cost of not prioritising customer loyalty
Neglecting loyalty has tangible consequences.
A lack of focus on retaining repeat guests leads to higher acquisition costs. Studies show that acquiring a new customer is five times more expensive than retaining an existing one (Forbes). Moreover, dissatisfied guests can damage a hotel’s reputation — negative reviews on platforms like TripAdvisor can significantly deter potential bookings.
Hotels that fail to adapt to guest expectations may also see a decline in their Net Promoter Score (NPS). Research from Bain & Company shows that a mere 5% increase in customer retention can boost profits by 25-95%.
A lack of focus on retaining repeat guests leads to higher acquisition costs. Studies show that acquiring a new customer is five times more expensive than retaining an existing one (Forbes). Moreover, dissatisfied guests can damage a hotel’s reputation — negative reviews on platforms like TripAdvisor can significantly deter potential bookings.
Hotels that fail to adapt to guest expectations may also see a decline in their Net Promoter Score (NPS). Research from Bain & Company shows that a mere 5% increase in customer retention can boost profits by 25-95%.
Top strategies to build customer loyalty in hospitality in 2025
1. Personalisation at scale
In 2025, personalisation is no longer optional — it’s the expectation. Guests want hotels to remember their preferences, from room temperature to preferred dining options.
Hotels can achieve this by using guest experience platforms that integrate data from previous stays. For example, if a guest consistently orders vegetarian meals, a hotel can suggest vegetarian dining options during pre-arrival communication. These personalised touches make guests feel valued and enhance their overall experience.
2. Seamless digital experiences
Digital convenience is a cornerstone of loyalty. Hotels that offer intuitive digital tools are more likely to win guest loyalty.
These tools streamline operations, improve guest satisfaction, and drive repeat bookings.
3. Going beyond rewards programs
The loyalty landscape is shifting away from point-based systems to emotional connections. Guests increasingly value unique, tailored experiences over transactional rewards.
Instead of just free nights or discounts, hotels can offer VIP experiences. For example, they can provide exclusive access to local events or behind-the-scenes tours of the property. These experiences create emotional ties that traditional loyalty programs cannot replicate.
4. Sustainability as a loyalty driver
Sustainability is no longer a trend but a key factor in guest loyalty. Hotels that prioritise green practices can attract and retain eco-conscious travellers.
This includes:
When guests see hotels act on sustainability, it builds trust. It encourages them to return.
5. Exceptional service as a foundation
While technology and sustainability are vital, nothing replaces the impact of exceptional service. A warm welcome, prompt responses, and attention to detail remain the foundation of guest loyalty.
Hotels must invest in training their staff to provide consistent, high-quality service. This includes teaching employees how to handle complaints effectively, anticipate guest needs, and go above and beyond to create memorable experiences.
In 2025, personalisation is no longer optional — it’s the expectation. Guests want hotels to remember their preferences, from room temperature to preferred dining options.
Hotels can achieve this by using guest experience platforms that integrate data from previous stays. For example, if a guest consistently orders vegetarian meals, a hotel can suggest vegetarian dining options during pre-arrival communication. These personalised touches make guests feel valued and enhance their overall experience.
2. Seamless digital experiences
Digital convenience is a cornerstone of loyalty. Hotels that offer intuitive digital tools are more likely to win guest loyalty.
- Digital menus for upselling. Allowing guests to book room service or spa treatments through a digital menu not only enhances convenience but also increases revenue.
- Pre-arrival communication. Sending emails or messages with tailored offers, like upgrades, helps guests start their journey well.
- No app download required. A web-based platform reduces friction for guests who prefer quick access over installing an app.
These tools streamline operations, improve guest satisfaction, and drive repeat bookings.
3. Going beyond rewards programs
The loyalty landscape is shifting away from point-based systems to emotional connections. Guests increasingly value unique, tailored experiences over transactional rewards.
Instead of just free nights or discounts, hotels can offer VIP experiences. For example, they can provide exclusive access to local events or behind-the-scenes tours of the property. These experiences create emotional ties that traditional loyalty programs cannot replicate.
4. Sustainability as a loyalty driver
Sustainability is no longer a trend but a key factor in guest loyalty. Hotels that prioritise green practices can attract and retain eco-conscious travellers.
This includes:
- Installing energy-efficient lighting and water systems.
- Offering locally sourced, sustainable dining options.
- Providing digital menus to reduce paper waste.
When guests see hotels act on sustainability, it builds trust. It encourages them to return.
5. Exceptional service as a foundation
While technology and sustainability are vital, nothing replaces the impact of exceptional service. A warm welcome, prompt responses, and attention to detail remain the foundation of guest loyalty.
Hotels must invest in training their staff to provide consistent, high-quality service. This includes teaching employees how to handle complaints effectively, anticipate guest needs, and go above and beyond to create memorable experiences.
Measuring and improving customer loyalty
The ability to track and improve loyalty is essential in 2025. Metrics like Repeat Guest Percentage, NPS, and CLV help hotels gauge their performance.
How hotels can leverage data to enhance loyalty:
Using these insights, hotels can improve their strategies and stay competitive.
The role of technology in loyalty programs
Technology is the backbone of modern loyalty programs. Hotels now have many tools to boost loyalty. They include guest experience platforms and digital room service apps.
For instance, Hoop’s task management and guest experience tools enable hotels to deliver personalised service while optimising operations. Technology is key to building long-term guest relationships. It ensures quick response times to requests and uses data analytics for upselling.
How hotels can leverage data to enhance loyalty:
- Use guest feedback to identify areas of improvement.
- Monitor room service hotel reviews to ensure consistent quality.
- Track loyalty program participation rates and adjust incentives accordingly.
Using these insights, hotels can improve their strategies and stay competitive.
The role of technology in loyalty programs
Technology is the backbone of modern loyalty programs. Hotels now have many tools to boost loyalty. They include guest experience platforms and digital room service apps.
For instance, Hoop’s task management and guest experience tools enable hotels to deliver personalised service while optimising operations. Technology is key to building long-term guest relationships. It ensures quick response times to requests and uses data analytics for upselling.
Conclusion
Customer loyalty in hospitality is evolving rapidly. In 2025, it’s no longer about offering the best rates or rewards — it’s about creating meaningful, memorable experiences. Hotels that use personalisation, digital tools, and sustainability, while providing great service, will thrive.
By using these strategies, hoteliers can boost guest satisfaction. This will improve retention and drive revenue growth. It will ensure a spot among the industry's top performers.
By using these strategies, hoteliers can boost guest satisfaction. This will improve retention and drive revenue growth. It will ensure a spot among the industry's top performers.
