In today’s travel landscape, guest loyalty isn’t just about getting someone to come back – it’s about convincing them to book with you in the first place. Traditional points-based loyalty programs are losing their edge, especially with leisure travelers who don’t travel frequently enough to benefit from long-term accumulation.
NB: This is an article from Travelboom
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If your program is still built around future rewards, you might be missing the opportunity to turn lookers into bookers – and OTAs into afterthoughts. To design a hotel loyalty program that builds revenue, ditch traditional points-based rewards and update your strategy for immediate perks and personalization.
What Travelers Want Out of Hotel Loyalty Programs
According to the 2026 TravelBoom Leisure Travel Study:
- 64% of travelers say instant discounts are the most appealing loyalty benefit.
- 61% value free perks like Wi-Fi, parking, or late checkout.
- Just 45.6% are drawn to traditional points-based rewards.
Today’s guests want immediate value. They want to feel rewarded now, not after 10 stays and a complicated redemption process. And they want those rewards to feel personal, tangible, and worth booking direct.
Why Traditional Loyalty Falls Flat
Most legacy loyalty programs were designed for business travelers and road warriors – people staying weekly and racking up points quickly. But the average leisure traveler takes 1–2 trips per year. For them, a points-based model feels irrelevant or out of reach.
Worse, it often creates friction. If the best benefits are reserved for high-tier travelers, first-time or infrequent guests have little incentive to join, engage, or book direct.
What Modern Loyalty Should Look Like
To convert and retain today’s traveler, your hotel’s loyalty strategy should offer:
- Immediate rewards for direct bookings: Discounts, free breakfast, or a guaranteed late checkout can move the needle.
- Surprise-and-delight perks: Think welcome drinks, early check-in, or personalized notes. These create emotional impact.
- Personalization at scale: Use past stay data or booking preferences to tailor the experience – like offering a room on the same floor they loved last time.
- Low-barrier entry into benefits: Loyalty shouldn’t feel like a club you have to earn your way into. Offer meaningful perks even on the first stay.
