Loyalty is a strong feeling of support or connection. We may feel loyalty to friends, family, a place or even a brand. Loyalty means that as consumers we buy from the same company because we trust the product or service, and prefer things we have experienced before which we found satisfactory. For example, why search for a new brand of coffee if you already know your favourite?
In the hospitality industry, guest loyalty is everything. A great reputation isn’t built overnight, it’s earned through consistent quality, great service, and meaningful experiences. That’s why hotel loyalty programs aren’t just perks, they’re a key strategy to keep guests coming back. In this article, we'll show you why hotel loyalty programs are essential and how to create one that really works.
Hotel loyalty programs build on established connections
A hotel loyalty program recognises the connection between the hotel and guests, and builds on this to strengthen the bond. It is a part of the Guest Journey, and encourages repeat business and a long term relationship through word of mouth and other recommendations that can reach an ever-larger audience. A successful hotel loyalty program is an excellent way of marketing your hotel over a long time, and consistently enhancing your reputation.
What makes a hotel loyalty program beneficial?
A guest who feels ‘seen and heard’ is a happy guest, because they experience a personalised interaction with the hotel. A well-crafted loyalty program does more than just offer perks, it builds meaningful guest relationships and helps your hotel grow sustainably. Here are three of the biggest benefits:
1. Improved guest experience and bookings
When guests feel valued, they come back; it’s that simple. A loyalty program that offers thoughtful rewards makes your guests feel appreciated and connected to your brand. Whether it’s a room upgrade, a late check-out, or a surprise welcome gift, these small touches make a lasting impression and often lead to more repeated business.
2. Lower marketing costs, better results
Loyalty programs are one of the most cost-effective marketing tools you can invest in. Instead of constantly spending money to acquire new guests, you’re nurturing the ones who already know and love your hotel.
3. More revenue through data and upselling
The more guests return, the more you learn about them. A good loyalty program, especially when integrated with a good PMS, gives you powerful data to tailor your offers, upsell relevant services (like spa packages or dining), and deliver an experience that feels truly curated. That kind of personalisation increases guest satisfaction and revenue.
Some examples of international hotel loyalty programs
There are different ways of creating a hotel loyalty program but most have common features, especially across international chains:
- Hyatt hotels’ World of Hyatt loyalty program is a tier-based points system where points earned can be redeemed for room upgrades, free stays and additional services: ‘You can enjoy rewards and benefits that make you feel appreciated, whether you’re enhancing your own stay or sharing with those you care about.’ Upgrades include free breakfasts and international club lounge access. There are also Hyatt personal and business credit cards which earn points that can be redeemed for stays.
- Hilton uses the partnering approach with its Hilton Honors loyalty program where points earned with American Express can be transferred to services such as a scheme allowing every fifth night as a free stay. There are numerous ‘perks’ such as an advance purchase discount, free breakfast, parking discounts and the Hilton Honors app to ‘Unlock your stay’ and connect with additional services.
- Radisson Rewards is also points-based, allowing free stays and partnering with air miles, or issuing gift cards which can be transferred to friends and family - a smart way of extending the appeal to new guests. Priority check-in check and check-out are also benefits of the scheme, which offers a 15% discount on a members-only rate, plus food and beverage discounts.
- Best Western provides exclusive rates for all loyalty members, with points for every stay even below the ‘Elite’ classification, and once in the scheme members earn rewards and can even buy points ‘banked’ against future stays. A two-night stay generates up to two $50 gift cards, and there are government and military discounts, as well as upgrade opportunities and tie-ins with local ‘experiences’.
- Marriott Bonvoy leads its offer with 20% discounts on stays, the opportunity to earn extra free nights, and special member rates. Mobile check-in and free wif-fi are also benefits, with preferred cross-booking to over thirty hotel brands worldwide in around ten thousand destinations.
Points awarded to secure loyalty
Notice that some of the benefits of the big hotels include parking deals, price savings on meals, or even free room upgrades. But if you’re a smaller, independent hotel without a global network or massive marketing budget, you don't have to replicate these programs point-for-point. In fact, your biggest advantage is your flexibility and personal touch. Focus on what the big chains can’t always deliver: genuinely personalised experiences. Offer thoughtful perks like late check-out for returning guests, a welcome drink or hand-picked welcome basket with local products. Loyalty doesn’t always come from flashy offers, it comes from guests feeling valued and remembered. Tailor your loyalty efforts to reflect your brand’s unique charm, and you’ll stand out in a way the big names can’t.
Most important things to consider when creating your hotel loyalty program
Launching a hotel loyalty program can be a powerful way to drive direct bookings and turn one-time guests into long-term advocates. While points, rewards, and discounts are classic building blocks, a successful loyalty program needs to be thoughtfully designed with your specific guest demographic in mind. You don’t need to compete with major hotel chains, instead, lean into what makes your property unique and build a loyalty program that reflects that personality.
Here’s how to create a loyalty program that plays to your strengths:
1. Focus on direct bookings first
One of the biggest benefits of a loyalty program is reducing reliance on OTAs. Start by incentivising guests to book directly through your website by offering loyalty points, members-only rates, or exclusive perks. This way, you maintain control, and have full visibility into their preferences.
Tip: Promote your loyalty program prominently on your website and booking engine. Consider offering a small welcome discount for signing up during direct booking.
2. Know your audience and build around them
Your guests are not a monolith. Families, solo travellers, digital nomads, and business professionals all look for different things in a hotel stay. Use data from your Property Management System (PMS) to segment your audience and understand their booking behaviors. Then tailor your rewards and communications accordingly.
Example: If many of your guests are weekend couples, consider perks like late checkout, free breakfast, or wine tasting for loyalty members.
3. Make it appealing and easy to join
The design and tone of your loyalty program matter. A clunky sign-up form or overly formal tone can discourage guests from enrolling. Keep the visuals inviting, the sign-up process smooth, and the language warm and friendly. This is your chance to build a lasting emotional connection. You can also use social media and post-stay emails to remind guests about your program.
4. Tiered programs create long-term engagement
Flat rewards are nice, but tiered programs truly drive loyalty over time. Creating multiple levels (e.g., Bronze, Silver, Gold, Platinum) gives guests a reason to come back and “level up.” Each tier should unlock increasingly attractive benefits, creating a sense of progress and exclusivity.
Idea: Include visible progress tracking in their online profile or confirmation emails, so guests know how close they are to their next reward tier.
5. Balance between tangible benefits and memorable experiences
Not all rewards need to be discounts. Many travellers, especially those staying at boutique hotels, value authentic experiences just as much, if not more. Think beyond free nights. Mix benefits (discounted stays, upgrades) with experiences (e.g., spa access, free cocktails, local tours).
Examples of great rewards:
- Free room upgrade after 3 stays
- Invitation to an annual wine & cheese evening
- Priority booking for local events
- Complimentary massage or breakfast
6. Start small and scale over time
You don’t need to launch a complex, multi-layered program from day one. Begin with a simple structure that you can manage effectively, gather feedback from guests, and evolve as your program gains traction. Test what resonates best before committing to a long-term setup.
Tools to build and encourage guest loyalty
Hotel loyalty programs are proven to drive repeat bookings and build lasting relationships. When guests feel appreciated and recognised, they’re far more likely to return.
At SabeeApp, we’ve been helping hotels worldwide do exactly that for over a decade. Our cloud-based Property Management System, along with our Smart Solutions, gives modern hoteliers everything they need to create personalised, seamless guest experiences — including tools to launch and manage effective loyalty programs.
Want to see how it works? Book a free personalised demo, and let us show you how SabeeApp can help turn your guests into loyal, repeat visitors.