Key Takeaways
- Hospitality loyalty programs are expanding earn and burn options across diverse categories.
- Sustainability and vacation rental rewards are gaining traction among hotel brands.
- Personalization and on-property rewards are driving increased guest engagement and spending.
In today’s bustling hospitality scene, loyalty programs have become the secret weapon for hotels looking to win over and keep their cherished guests. A new report from iSeatz, a leader in loyalty tech solutions, sheds light on the evolving strategies hospitality companies are employing to gain an edge.
After a post-pandemic plateau, iSeatz’s “State of Loyalty 2024 Hospitality Rewards Report” reveals a resurgence in loyalty program expansion across major hotel groups. The total number of earn and burn options across all analyzed brands increased by 19 compared to 2023.
“Hospitality brands are reinvesting in their rewards portfolios and enhancing the member experience through expansion,” the report states.
Driving this growth are new opportunities to earn and redeem points across a diverse range of categories beyond just hotel stays – from car rentals and tours to wellness services and charitable donations. Dining rewards saw a notable uptick, with more brands allowing members to earn points when charging meals to their room.
Two key trends emerged in 2024: the gradual inclusion of sustainability rewards and deeper integration with vacation rental brands.
While still lacking, sustainability options like donating points to environmental causes are slowly gaining traction. IHG’s “Greener Stay” program lets members earn points for declining housekeeping in Fiji.
“14% of consumers would engage more with loyalty programs if they offered sustainability rewards,” the report notes, citing consumer research.
The vacation rental market is another area of emphasis. A third of major hotel brands now enable points earning for stays at affiliated vacation rental properties, up from just 13% in 2023. Marriott Bonvoy, for instance, offers a points multiplier when members book longer stays via Marriott Homes & Villas.
“This capitalizes on travelers’ affinity for non-traditional lodging while boosting cross-brand engagement,” according to iSeatz.
Other emerging strategies include using AI for personalized offers, unbundling to drive ancillary spending, and expanding on-property redemption at hotels’ own restaurants and spas.
“Dining and wellness rewards continue to increase, reinforcing that more lifestyle rewards complementing hotel stays will spur on-property spending,” the report explains.
While hotel loyalty programs underwent contractions in 2023, this year’s expansion underscores an industry belief: A robust rewards portfolio is key to capturing a bigger share of consumer travel spend.
“If our previous years’ reports have taught us anything, it is that hospitality rewards are ever-evolving,” concludes iSeatz, “but we believe loyalty programs… only become more effective as a differentiator when they feature a robust, relevant reward portfolio.”
As travel demand remains strong, hospitality brands are betting that richer loyalty offerings translate to more direct bookings and customer spending, which will foster the coveted “enduring brand loyalty.”
