Top 10 Hotel Loyalty Programs and How to Create Your Own

Posted on the 22 August 2024 by Nayra Jackson

In the competitive world of hospitality, guest loyalty is crucial for sustained success. Hotel loyalty programs are a proven strategy for encouraging repeat business and increasing customer retention. This comprehensive guide will cover the top 10 hotel loyalty programs, highlight their unique features, and provide a step-by-step guide on how to create your effective loyalty program.

Table of Contents

  1. Introduction to Hotel Loyalty Programs 

  1. The Importance of Hotel Loyalty Programs

  1. Top 10 Hotel Loyalty Programs

  1. Marriott Bonvoy

  1. Hilton Honors

  1. World of Hyatt

  1. IHG Rewards Club

  1. Radisson Rewards

  1. Wyndham Rewards

  1. Accor Live Limitless (ALL)

  1. Best Western Rewards

  1. Choice Privileges

  1. Omni Select Guest

  1. How to Create Your Hotel Loyalty Program

  1. Understand Your Guests’ Needs

  1. Define Clear Objectives

  1. Choose the Right Loyalty Model

  1. Design Reward Tiers and Benefits

  1. Implement a User-Friendly System

  1. Promote Your Program Effectively

  1. Monitor and Improve Your Program

  1. Frequently Asked Questions (FAQs)

  1. Conclusion

Introduction to Hotel Loyalty Programs

Hotel loyalty programs are structured marketing efforts designed to encourage guests to continue using the services of a specific hotel or hotel chain. By rewarding repeat customers, hotels can foster a sense of loyalty, enhance guest satisfaction, and boost overall profitability. These programs typically offer points for each stay, which can be redeemed for free nights, room upgrades, and other perks

The Importance of Hotel Loyalty Programs

In a market where competition is intense, keeping existing customers is more economical than continuously bringing in new ones. Loyalty programs encourage repeat reservations, foster close bonds with visitors, and offer insightful information on the tastes and actions of past visitors. Stronger brand recognition, more revenue, and higher occupancy rates can all result from a well-thought-out loyalty program.

Top 10 Hotel Loyalty Programs

Marriott Bonvoy

Overview: One of the most well-known and extensive hotel loyalty programs in the world is Marriott Bonvoy. Members accrue points for lodging, eating, and other amenities at more than 7,000 properties spread over 30 brands. Titanium Elite, Platinum Elite, Gold Elite, Silver Elite, and Member are the five membership tiers available in the program.

Important characteristics:

Get points for using co-branded credit cards, dining out, and hotel stays.

Earn experiences, free nights, and hotel upgrades by redeeming points.

Benefits from having elite status include free breakfast, lounge access, and late checkout.

Analysis: For frequent travelers, Marriott Bonvoy is the best option due to its wide network and flexibility. The collaboration between the program and airlines and other travel-related businesses provides a lot of value.

Hilton Honors

Overview: Hilton Honors is renowned for its easy point earning and substantial incentives. The program includes 18 brands and more than 6,300 homes worldwide. There are four membership tiers available in Hilton Honors: Member, Silver, Gold, and Diamond.

Important characteristics:

Get points for dining, lodging, and through alliances with car rental firms and airlines.

Exchange points for free nights, vacation packages, and donations to worthy causes.

Benefits from elite rank include free breakfast, complimentary accommodation upgrades, and first-rate Wi-Fi.

Based on our analysis, Hilton Honors is especially beneficial for business travelers because it offers free Wi-Fi and the opportunity to share points with friends and family.

World of Hyatt

Overview: The world of Hyatt is distinguished by its individualized care and gratifying perks associated with elite rank. The program has four tiers: Member, Discoverist, Explorist, and Globalist, and it covers over 1,000 properties.

Important characteristics:

Gain points for meals, lodging, and spa treatments.

Redeem points for wellness treatments, hotel upgrades, and complimentary nights.

Benefits of having elite status include suite upgrades, free parking, and late checkout.

Insights: Because of its upscale accommodations and distinctive attractions, World of Hyatt is a favorite among affluent tourists. The program's reach to boutique properties is increased by its relationship with Small Luxury Hotels of the World.

IHG Rewards Club

The IHG Rewards Club is a hotel loyalty program widely recognized, with access to over 5,900 properties under various brands such as Crowne Plaza, Holiday Inn, and InterContinental. There are four membership tiers available in the program: Club, Gold Elite, Platinum Elite, and Spire Elite.

Important characteristics:

Get points for eating, lodging, and co-branded credit cards from IHG.

Exchange points for products, gift cards, and complimentary nights.

Benefits of having elite status include bonus points, late checkout, and priority check-in.

Views: IHG Rewards Club is a fantastic choice for both business and pleasure travelers due to its wide worldwide reach and reasonable prices.

Radisson Rewards

Overview: With a portfolio of more than 1,100 locations globally, Radisson Rewards offers accommodation to a diverse variety of guests. Club, Silver, Gold, and Platinum are the four membership tiers available in the program.

Important characteristics:

Earn points with the Radisson Rewards Visa card, during meals, and stays.

Exchange points for gift cards, airline miles, and complimentary stays.

Benefits of elite rank include early check-in and late checkout in addition to upgraded rooms.

Insights: With a significant presence in Europe and Asia, Radisson Rewards is a great option for regular visitors to these regions.

Wyndham Rewards

Overview: Wyndham Rewards, which spans more than 9,000 properties across 20 brands, is commended for its affordability and ease of use. There are four membership tiers in the program: Diamond, Platinum, Gold, and Blue.

Important characteristics:

Accumulate points for visits, vehicle rentals, and activities.

Exchange points for experiences, gift cards, and complimentary nights.

Benefits of having elite status include complimentary welcome amenities, late checkout, and room upgrades.

Insights: Wyndham incentives are ideal for travelers on a tight budget who value uncomplicated incentives and a large assortment of resorts.

Accor Live Limitless (ALL)

Overview: Beyond hotel stays, Accor Live Limitless (ALL) is a lifestyle-focused reward program. The program, which covers over 5,000 properties worldwide, is divided into four tiers: Classic, Silver, Gold, and Platinum.

Important characteristics:

Gain points for visits, meals, and activities.

Redeem points for special events, airline miles, and complimentary nights.

Benefits of elite rank include early check-in and late checkout in addition to upgraded rooms.

Insights: ALL is the best option for tourists looking for a wide variety of experiences, such as upscale lodging, exciting dining experiences, and sporting events.

Best Western Rewards

Overview: With more than 4,500 locations globally, Best Western Rewards is renowned for how simple it is to accrue and use points. There are five membership tiers available in the program: Diamond, Platinum, Gold, Blue, and Diamond Select.

Important characteristics:

Earn points with the Best Western Rewards MasterCard, dining out, and hotel stays.

Exchange points for products, gift cards, and complimentary nights.

  • Benefits of having elite status include early check-in, late checkout, and upgraded rooms.

Choice Privileges

Summary: Choice Privileges is a simple and reasonably priced reward program that is available at over 7,000 properties under various brands, including Comfort Inn, Quality Inn, and Econo Lodge. There are three membership tiers available in the program: Member, Gold, Platinum, and Diamond.

Important characteristics:

Earn points with the Choice Privileges Visa card, accommodations, and vehicle rentals.

Exchange points for airline miles, gift cards, and complimentary nights.

Benefits of having elite status include bonus points, late checkout, and early check-in.

Insights: Choice Privileges is a great option for travelers on a tight budget or who prefer an easy way to accrue and use points.

Omni Select Guest

Overview: Omni Select Guest is a customized loyalty program that prioritizes meeting the needs and preferences of its members and providing unique experiences. Three tiers are available for the program: Basic, Gold, and Platinum.

Important characteristics:

Get points for eating and lodging.

Earn free nights and access to unique events by redeeming points.

Benefits of having elite status include free Wi-Fi, accommodation upgrades, and morning beverage delivery.

Insights: Travelers who value individualized attention and distinctive experiences above conventional awards will find that Omni Select Guest is ideal.

How to Create Your Hotel Loyalty Program

Recognize the Needs of Your Guests

It's important to know what your customers appreciate before developing a loyalty program. Surveys, guest evaluations, and market research can all be used to determine which incentives and advantages your target audience will find most appealing.

Establish Specific Goals

Clearly define your loyalty program's goals. Are you trying to get more people to make repeat reservations, make more money, or make guests happier? Your program's features and structure will be shaped by your ambitions.

Selecting the Proper Loyalty Model

There are various loyalty models available, such as:

Points are accumulated by visitors for each stay and can be exchanged for benefits under a points-based scheme.

Tiered system: Based on their spending or length of stay, guests advance through several membership tiers, unlocking new advantages at each level.

A cashback or discount system gives visitors a portion of their money back as credit for further visits.

  • Experience-based rewards: Visitors receive exclusive experiences like invitation-only parties or individualized attention.

Select a model who embodies your brand and speaks to the people who matter to you.

Design Benefits and Reward Levels

Make reward tiers to encourage visitors to advance through the program. As the tiers are reached, bonuses like free nights, hotel upgrades, and special deals should be added. Make sure the prices are reasonable and pertinent to your visitors.

Establish an Easy-to-Use System

It should be simple to sign up for, use, and navigate your reward program. Invest in a user-friendly platform that enables visitors to easily manage their accounts, track their progress, and earn prizes.

Effectively Promote Your Program

Promote your loyalty program on all customer touchpoints, such as your website, email newsletters, social media accounts, and in-hotel signage, to get the most participation possible. Give them incentives to sign up, like more points or a discount on their subsequent visit.

Keep an eye on and tweak your program.

Analyze your loyalty program's effectiveness regularly by monitoring important indicators including revenue growth, visitor retention, and enrollment rates. Make changes and enhancements based on this data to keep your software current and efficient.

Frequently Asked Questions (FAQs)

Q1: What are the key benefits of hotel loyalty programs?

Hotel loyalty programs offer several benefits, including increased guest retention, higher revenue, and valuable customer data. They also enhance brand loyalty and provide guests with a personalized experience.

Q2: How do I choose the best loyalty program for my hotel?

Consider your target audience, brand values, and business goals when choosing a loyalty program. Look for a program that offers flexibility, attractive rewards, and a user-friendly system.

Q3: Can small hotels create effective loyalty programs?

Yes, small hotels can create successful loyalty programs by focusing on personalized service, unique experiences, and simple rewards that cater to their specific guest demographic.

Q4: How often should I update my loyalty program?

Regularly review and update your loyalty program to ensure it meets the evolving needs of your guests. Consider adjusting at least once a year based on guest feedback and market trends.

Q5: What is the best way to measure the success of a loyalty program?

Key metrics to measure include enrollment rates, repeat bookings, guest satisfaction, and revenue growth. Use these metrics to assess the effectiveness of your program and identify areas for improvement.

Conclusion

Hotel loyalty programs are an essential tool for building long-term relationships with guests and driving repeat business. By understanding the top hotel loyalty programs in the industry and following a strategic approach to creating your own, you can enhance guest satisfaction, increase revenue, and solidify your brand's reputation. Remember, a successful loyalty program offers real value to your guests and aligns with your overall business goals.