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How Top Hotels Are Utilising Loyalty Programmes to Drive Their Performance in 2024

How Top Hotels Are Utilising Loyalty Programmes to Drive Their Performance in 2024
Are loyalty programmes for hotels a way to increase customer LTV? Do they promote long-term business performance and customer loyalty, or are they a burden that reduces hotel profits without providing any real benefit? The debate on these issues is ongoing. But the fact is that most major hotel chains have their own loyalty programmes in place.

And in this article, we will discuss how they have revamped their loyalty programmes in recent years to adapt to changing customer behaviour. We will look at 7 of the largest hotel groups: Marriott, Hilton, IHG, Accor, Hyatt, Radisson and Choice.


Marriott Bonvoy

The Marriott Bonvoy loyalty programme offers its members a range of benefits and rewards. Members earn points for every dollar they spend on eligible stays, which can be redeemed for free nights, room upgrades and more.

Recently, Marriott introduced a new tiered loyalty programme called "Bonvoy Brilliant," which offers exclusive benefits such as free room upgrades, late check-out and access to exclusive events to the highest tier members. The "Bonvoy Brilliant" tier offers a range of exclusive benefits to members who stay at least 50 nights per year, including an annual free night award, $300 in credits for eligible purchases at participating Marriott Bonvoy hotels and a $100 credit for qualifying stays of two nights or more.


Hilton Honors

Hilton Honors has made several changes and improvements to its loyalty programme to further enhance the experience for its members. Some of these changes include:

1. Personalised Experiences. Hilton has introduced personalised experiences for its members that customise offers and promotions based on their preferences and previous stays.
2. Points pooling. The programme has expanded its points pooling feature, which allows members to combine points with up to 10 friends or family members for free stays, making it easier for members to earn and redeem points together.
3. Enhanced benefits. Hilton has enhanced benefits for its elite members, such as Gold and Diamond members, giving them more options for room upgrades, late check-out and other exclusive perks.
4. Digital enhancements. Hilton has enhanced its digital capabilities, making it easier for members to book stays, manage their accounts and access their benefits through the Hilton Honors app and website.
5. Partnership Expansions. The program expanded its partnerships with airlines, car rental companies, and other travel providers, offering members more opportunities to earn and redeem points with these partners.


IHG Rewards Club

The IHG Rewards Club loyalty programme offers a range of benefits for its members. For every dollar members spend on qualifying stays, they earn points that can be redeemed for free nights, merchandise and more.

Recently, IHG launched a new loyalty programme called "IHG Rewards Access," which offers exclusive discounts and benefits to members who book directly through the IHG website or app. This programme enhancement aims to incentivise direct bookings and enhance the overall member experience. In addition, IHG has further expanded its global footprint and added new hotels to its portfolio, giving members more options to earn and redeem points. These changes demonstrate IHG's commitment to providing its members with a rewarding experience and encouraging direct bookings through its loyalty programme.


The Accor Live Limitless

The Accor Live Limitless (ALL) loyalty program offers a range of benefits for its members across the Accor hotel portfolio.

Accor launched a new loyalty program called "ALL-Inclusive," offering all-inclusive stays at select resorts and hotels within the Accor portfolio for a fixed price. This program enhancement aims to provide members with a more inclusive and hassle-free vacation experience. Additionally, Accor continued to expand its partnerships and offerings, providing members with more opportunities to earn and redeem points.


The World of Hyatt

The World of Hyatt loyalty program provides members with a range of benefits, including points earned for every dollar spent on eligible stays, which can be redeemed for free nights and room upgrades.

Hyatt introduced the "Hyatt Wellbeing" program, focusing on holistic well-being experiences such as wellness retreats, fitness classes, and healthy dining options. This initiative reflects Hyatt's commitment to enhancing the overall travel experience for its members by prioritizing their health and well-being. Additionally, Hyatt expanded its global presence by adding new properties to its portfolio and offering more flexible redemption options, further enriching the program for its members.


Choice Privileges

Choice Privileges, the loyalty program of Choice Hotels, offers members the opportunity to earn and redeem points at over 7,000 hotels worldwide. In 2023-24, Choice Hotels introduced a new loyalty program called "Choice Privileges Elite," offering enhanced benefits such as priority check-in, late checkout, and room upgrades for its elite members. This program enhancement aims to provide elite members with a more personalized and rewarding experience.

Additionally, Choice Hotels expanded its partnership network, allowing members to earn and redeem points with more travel partners, further enhancing the value of the program for its members.


Radisson Rewards

Radisson Rewards, the loyalty program of Radisson Hotels, underwent significant changes in 2023-24 to enhance the overall experience for its members. One of the key changes was the introduction of the "Radisson Rewards Plus" tier, offering exclusive benefits such as guaranteed room availability, complimentary room upgrades, and access to exclusive events for its top-tier members.

The program also revamped its points earning structure, allowing members to earn points faster and redeem them for a wider range of rewards, including free nights, airline miles, and gift cards.


Summary

Each hotel chain is trying to find its own loyalty programme strategy. Some go for personalized experiences; some opt for flexible redemption options and exclusive benefits. It looks like the main trend we can see is that loyalty programmes are becoming more complex and flexible, in order to actually meet both customer needs and hotels' business objectives. There seems to be no one-for-all working solution, and each hotel has to find its own way.