Hotel reward programs are losing their grip on guest loyalty
🏨 Feb 11, 2026, according to Phocuswright, travel loyalty programs don't ensure brand loyalty. Travelers prefer value, flexibility, and fit, often choosing non-preferred brands. Though points influence choices, they don't make up for poor pricing or experiences. Many guests join loyalty programs but switch for better pricing or location. Younger travelers, particularly Gen Z and millennials, seek variety. Operational excellence, like consistent service, transparent pricing, and reliability, drive repeat bookings over loyalty incentives.
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