The loyalty shift: Why points alone no longer win hotel guests

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Hotels must embrace hybrid, personalized models to stay relevant in a changing loyalty landscape

May 29, 2025

Points-based hotel loyalty programs, once the backbone of guest retention, are losing their universal appeal. In today’s digital-first, experience-driven travel world, loyalty is being redefined by personalization, immediacy, and emotional connection rather than just accumulated stays. Experts agree: traditional models must evolve or risk becoming obsolete.

Key takeaways

Generational Divide: Older travelers and business guests still value points, but younger guests seek instant, personalized benefits and often distrust traditional loyalty programs.
Erosion of Trust: Many programs fall short on promised perks—like free breakfast or late checkout—which weakens customer confidence and satisfaction.
Hybrid Models Emerging: Loyalty structures must blend points with instant rewards and emotional engagement to resonate across demographics.
Tech Is Critical but Fragmented: Most hotel systems aren’t integrated enough to enable meaningful personalization. AI and CRM alignment are key to future success.
Personal Recognition Over Points: Guests want to be seen, valued, and understood—something Staypineapple has prioritized by ditching points for direct, consistent perks.
Human Touch Still Matters: Technology enables personalization, but emotional intelligence and frontline creativity deliver the real “wow” moments.
Scalability Through Flexibility: No one-size-fits-all solution exists. Loyalty must be modular, adaptable, and guest-centric to remain relevant.