Hotel rewards programs are among the most powerful tools available to hoteliers. A strategically leveraged program will both increase repeat bookings through incentives and provide guest data that can be used to provide further growth. The process builds up a defensible market share, pushes up RevPAR, and reduces the overall cost of acquisition.
In this article, you’ll learn how the programs operate and relate to ROI metrics, benchmarking, competitive strategies, and methods to prioritize guest retention. All while using consumer data and predictions to stay ahead of industry trends.
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What Are Hotel Rewards Programs?
A hotel rewards program encompasses various strategies to encourage repeat bookings and direct reservations through incentivization. The programs typically operate through some variation on a points system. Guests earn points during their stay, which can be used on and for repeat visits. The points might earn them room upgrades, a free night’s stay, flexible checkout, better rates, amenities, personalized service, or a variety of other options.
But hotel rewards aren’t just a lure. They’ll ideally work to forge true connections with guests. Both parties benefit as the property tailors rewards and incentives to make guests eager to come back. This process generates more user data, which helps the hotel to create better experiences. Personalized marketing is part of this process as well and drives even more repeat reservations. The method also reduces the need for separate distribution channels and their associated costs.
Video: Best Hotel Rewards Program
Why Hotel Rewards Programs Are Important for Hoteliers?
The best hotel rewards programs are those which provide benefits to both parties. Hotels benefit from return visits, and guests can enjoy specially tailored deals that maximize their spending power. Travelers can enjoy perks like personalized amenities or priority services that they wouldn’t normally receive while still saving money. It’s a small extra hotel cost that leads to larger profits through retention. Even a 5% increase can lead to profit growth between 25% and 95%. The total spent by guests also goes up, with members in loyalty clubs having 60% higher annual spending than non-members. 68% of hoteliers also report that their members use direct booking more often, which translates to increased profit through diminished OTA fees. Hotel rewards provide travelers with an assurance that they have a dependable option within this competitive hotel industry.
Key Factors to Consider When Choosing a Hotel Rewards Program
There’s no single best option for hotel rewards programs. Business and personal factors will elevate their importance based on several factors.
- Geographic Coverage: Combine an understanding of chains linked to key markets with properties convergent with your clients to optimize earnings and guest redemption offers.
- Earning Structure: Guest spending is a good metric on which to judge review point rates. 0.5 to 1 cent per point are generally solid options with higher redemption returns associated with luxury brands.
- Elite Benefits: An elite hotel loyalty program can provide comfort without insisting on lengthy visits. Weigh benefits like breakfast, flexible checkouts, and room upgrades against qualification thresholds.
- Redemption Options: Hotel rewards might allow for minimal blackout dates. If it allows redemption with the addition of cash, you’ll have more freedom when reward points alone aren’t sufficient.
- Partner Network: Multiple reward alliances can synergize with hotel rewards. Check dining programs, credit cards, and airlines. Allied rewards lead to greater guest retention and acquisition.
- Program Stability: Hotel membership rewards require trust, so make sure that there’s no significant devaluation. Reward programs need to maintain quality and grow to demonstrate value.
Top 10 Hotel Rewards Programs in 2025
The various programs for hotel rewards typically aim to meet different needs and demographics. Consider the following options, the best of the best, and think about which fits your usage scenarios.
Marriott Bonvoy
One of Marriott Bonvoy’s most significant benefits is its sheer scope. Members will enjoy benefits through 30 different brands all over the world, consisting of over 8,000 properties. Additionally, over 40 airlines are allied with transfer partnerships as members move through the five tiers, and their hotel rewards scale accordingly. During off-peak stays, the redemptions begin at 5,000 points, while the highest luxury options need more than 100,000. You can also leverage co-branded credit cards for free anniversary nights and automatic elite status. Hoteliers should note that Bonvoy provides direct bookings and solid guest data to streamline service personalization and distribution costs. If you want to find more information about Marriott Bonvoy Program, read “Marriott Hotel Brands: Exploring the Brands of Marriott International.”
Video: How to Start Maximizing Your Marriott Bonvoy Points
Hilton Honors
Hilton Honors is especially notable for its flexibility. For example, you can top off your points with cash to obtain the hotel rewards you’re most interested in. The plan provides a ratio of ten points per dollar and can be supplemented with co-branded credit cards, dining programs, and more. Some of the benefits include breakfasts and room upgrades. Additionally, Hilton Honors has a no-blackout-date policy that will provide rooms even when cash bookings aren’t available. It also has an impressive scope, with 200 million members using the service through 7,600 properties all over the world. You can find more information about Hilton Honors in the article “Hilton Hotel Brands: Learn About the Biggest Hilton Brands.”
Video: The Hilton Honors Rewards Program
World of Hyatt
World of Hyatt provides you with access to bonuses in 1,000 properties. The four status tiers will earn you 5 points per dollar and access to impressive perks. Some of the hotel rewards include space available and suite upgrades along with waived resort fees. Points can be earned through dining, stays, and other related activities. Additionally, World of Hyatt is paired with both small luxury hotels and American Airlines. Properties should note the increased guest loyalty, as these benefits increase repeat stays and provide higher RevPAR.
Video: Hyatt Vs Marriott: Which is the Best Hotel Reward Program?
IHG One Rewards
IHG One Rewards include well-known names like Holiday Inn and InterContinental among its 6,000+ hotels. The system’s hotel rewards begin at 10,000 points, though the best of the best can run as high as 100,000. This is further aided by a flexible variable price point redemption system. However, simply being a cardholder gives some immediate benefits as well, including 25% off on extended stays and a free fourth night. Platinum status, along with anniversary nights, are also inherent benefits of having a co-branded credit card. The most significant benefit to property owners is the reduced OTA fees, thanks to more direct bookings. You can find detailed information about IHG One Rewards in the article “IHG Hotel Brands: List of InterContinental Hotels Group Brands.“
Video: Your Complete Guide to the IHG One Rewards Program
Wyndham Rewards
Wyndham Rewards operates in over 95 countries and 9,000 hotels. The structure of hotel rewards is designed around a three-tier system which costs 7,500 points, 15,000 points, or 30,000 points per night. Members earn whichever value is greater – 1,000 points per night or 10 points per dollar. Members with co-branded credit cards can earn additional bonuses, and Caesars Rewards adds additional redemption offers thanks to a partnership. Wyndham Rewards is especially useful to budget travelers who want mid-tier accommodations. The service helps to drive repeat visits rather than lose them to price-dependent third-party channels.
Video: Wyndham Rewards Program Review
Best Western Rewards
Best Western Rewards provides a simple and easily understood system. It holds special appeal to people traveling North America as there’s a diverse layout of property types in both urban and smaller areas. This helps to drive loyalty and return visits. Membership provides 10 points per dollar, and one night equals 8,000 points. Best Western Rewards is notable for its lack of restrictions. There are no blackout dates, and points won’t expire. Additionally, members can earn two to three times the standard point values during seasonal promotions. This straightforward, friendly approach has ensured consistent occupancy over their varied markets.
Video: Best Western Rewards – an Award-Winning Loyalty Program
Accor Live Limitless (ALL)
Accor Live Limitless provides hotel rewards for more than 4,000 properties. Options range from budget Ibis hotels to the more corporate hotel loyalty program-compatible luxury Fairmont resorts. Guests traveling on business will also have options for corporate benefits and accelerated earning rates. The system’s redemption starts at 2,000 points, which equates to €40. And for every €10 spent, the guest earns 5 to 25 points. Each tier is further enhanced by elite status. Rewards extend to amenities such as spa access and dining. Additionally, guests can use points with partners such as Paris Saint-Germain.
Video: Is the Accor Loyalty Program Worth It?
Choice Privileges
Choice Privileges provides points for hotel rewards at 10 per dollar. The cost for one free night ranges from 8,000 points to 35,000 points. The value of these points is increased even more thanks to quarterly promotions. The promotional periods can boost rewards to as much as one free night after two visits. This is even more impressive given that Choice Privileges encompasses over 7,000 properties, including well-known brands such as Cambria Hotels and Comfort Inn. Owners of midscale and economy hotels will typically benefit from the appeal to domestic travelers within the U.S., while business travelers can enjoy concurrently earning both airline and hotel points.
Video: Choice Privileges Rewards
Radisson Rewards
Radisson Rewards provides hotel rewards at an impressive 20 points per dollar, with elite status given at 9 annual nights. Free stays are available after a minimally paid visit. The point range for redemption is from 15,000 to 75,000 points. Increased loyalty from business travelers in Northern Europe’s metropolitan areas should be a reason for interest in properties. Families will also benefit from family room redemption and household point sharing.
Video: Radisson Rewards – Bookers and Planners Benefits
Sonesta Travel Pass
Sonesta Travel Pass is a newer U.S.-focused option with over 250 properties and is growing thanks to recent acquisitions. It provides three tiers for hotel rewards. The annual night requirements for the tiers are 6, 12, and 30. Points are valued at 10 per dollar and provide exceptional value given the inclusion of higher-end options such as Royal Sonesta. The lower qualification threshold is especially notable in comparison to other options.
5 Key Benefits of Hotel Rewards Programs
While programs offer a wide variety of different hotel rewards, the following usually have the largest and most significant impact.
Enhanced Guest Experience Through Personalization
One of the reasons why hotel rewards are mutually beneficial to both property and guests involves data. Loyalty programs give hotels the chance to learn about a guest’s preferences and tailor service to meet those expectations. This can include pillow selections, remembering room preferences, and favorite amenities. Likewise, hotels can thank guests for this through priority treatment that might include dedicated customer service or expedited check-in or checkout. It’s a way of forming stronger connections between guests and hotel brands, which benefits both.
Cost Savings and Value-Added Benefits
Members save money in a variety of different ways when using hotel rewards. Room discounts are the most obvious, with a typical saving of 10% to 15% through direct reservations. The financial benefits also extend to potentially waiving resort fees, complimentary meals, and resort credit. People traveling on business can save even more as the company might reimburse them while points are still accrued on personal credit.
Flexibility Across Global Hotel Portfolios
Reward programs are typically quite flexible. For example, points earned through business use could be leveraged for a vacation at luxury spots. This is aided by the wide distribution and variety of major brands. Hilton Honors, Marriott Bonvoy, Hyatt Hotel, and other major programs have options in everything from budget spots to luxury hotels. The range of options and rewards means that it’s easy to tailor both to your own needs.
Status Tiers and Elite Recognition
The more you use hotel rewards, the more you’re able to get out of it. Reward programs typically provide higher-quality perks as you move up the tiers. This could include access to executive lounges, late checkout, room upgrades, dedicated concierge service, guarantees of room availability during busy seasons, and even welcome gifts. These extras help hotels retain especially valued guests and likewise make the guests feel valued.
Integration with Credit Card and Partner Benefits
It’s quite common for a hotel to co-brand with credit cards. When people use the co-branded cards, they’ll automatically earn points for hotel rewards. Likewise, the points are often usable with allied services within the greater ecosystem. This can allow for additional savings on car rentals, airlines, retail, and more. The use of a co-branded card will often bring automatic benefits like welcome bonuses, elite status, and anniversary-free nights. It’s not simply a matter of increasing points either. The new options opened by co-branded cards mean that even people who don’t travel much can easily earn points.
How to Maximize the Value of Hotel Rewards Programs
Hotel rewards hold inherent value, but you can optimize those resources to get the most out of them with the following strategies.
- Strategic Selection: Match choices like frequent traveler rewards to your habits. Emphasizing a smaller number of programs will let you reach higher status faster.
- Direct Booking: Direct booking is typically among the best ways to earn hotel points, while using third-party booking won’t qualify.
- Status Matching: Asking for status matching can grant the same hotel rewards without any increased need for qualified stays.
- Point Pooling: Some programs let you combine points with family members. This pooled point approach can speed up your momentum to reach specific redemption goals.
- Credit Card Benefits: Co-branded credit cards earn points for hotel rewards as a side effect of just living life. You’ll often find extras like elite status or anniversary offers.
- Join Promotions: If there’s an available promotion, register for it. As an example, seasonal offers can increase earnings by two to three times. Targeted promotions were shown by Skift Research to increase the spending of loyalty members by 23% and booking frequency by 37%.
Common Challenges and Solutions in Hotel Rewards Programs
Ensuring that you get the most out of hotel rewards is typically straightforward. However, the following are some of the more common issues and how to get around them.
- Point Expiration Management: Watch out for upcoming expirations and ensure you meet the requirements to keep your account active, whether it’s using a card, dining during a visit, or anything else to preserve your hotel rewards.
- Blackout Date Restrictions: High seasons can interfere with the accrual of hotel rewards. Anticipate peak seasons with advance booking and use a combination of cash and points if standard redemption isn’t viable.
- Program Devaluation Risks: A single chain might change point requirements. To ensure your hotel rewards, diversify over multiple programs – don’t keep all your eggs in one basket.
- Elite Status Maintenance: Protect your elite status at the year’s end with a “mattress run” to qualify for, match, or retain requirements for elite status tiers.
- Redemption Value Optimization: The average cent-to-point value for rewards is around 0.7-1.0 cents. When you redeem hotel rewards, look for values that surpass that average.
- Benefit Utilization Tracking: It’s even easy to miss out on the top-tier luxury hotel rewards program benefits if you’re not careful. Make a list of elite benefits, including food credits, that you want to use during a stay.
Pricing Strategies to Increase Your Hotel Revenue
Incentives like hotel credit card rewards are an incredibly useful way of boosting long-term revenue. However, in the competitive hospitality market, you need to leverage a wide variety of tools within a cohesive strategy. Dynamic pricing models are invaluable for balancing occupancy goals with rate integrity. Competition, market segmentation or trends, and costs for distribution channels all play a role. You can discover proven strategies to build your hotel’s revenue stream in the article “14 Pricing Strategies to Increase Your Hotel Revenue.”
Hotel Marketing; The Latest Trends in the Hotel Industry
Incentives like business travel rewards aren’t just about specific perks. They also help to forge connections with guests as part of a larger marketing effort. It’s a method of personalizing marketing to speak to individuals. Digital media, especially social media, allows for greater engagement with potential guests. A data-driven approach lets you leverage people’s actual interests to provide much higher overall ROI and customer satisfaction. The article “Hotel Marketing; The Latest Trends in the Hotel Industry” highlights the financial potential of the latest trends.
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Hotel rewards, ultimately, are a tool that should benefit every party. Carefully considering the options leads to better stays for guests, increased profits and ROI for property owners, and benefits for ancillary parties. However, maximizing benefits means carefully considering which of these options is the best fit.
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This article is written by:
Hi, I am Martijn Barten, founder of Revfine.com. With 20 years of experience in the hospitality industry, I specialize in optimizing revenue by combining revenue management with marketing strategies. I have successfully developed, implemented, and managed revenue management and marketing strategies for individual properties and multi-property portfolios.
