Travel and Hospitality
Innovative hotel loyalty programmes: Top strategies and practices to engage guests
Loyalty programmes drive guest retention and engagement, helping hotels build long-term relationships and boost customer lifetime value. A well-designed loyalty programme strengthens brand affinity and drives repeat bookings with personalised rewards and experiences.
Studies show that loyalty programme members spend 47% more than non-members on hotel stays, highlighting the significant impact of well-structured hotel rewards programmes.
As travel demand rises and customer expectations evolve, hotels must rethink their loyalty strategies to foster deeper connections, encourage repeat bookings, and enhance the overall guest experience. Implementing innovative and personalised hotel rewards programmes can give hotels a competitive edge in an increasingly crowded market.
The core of hotel loyalty programmes: Emotional connection
Loyalty programmes go beyond discounts and free nights—they create emotional bonds. Guests stay loyal when they feel valued. Personalised services, exclusive perks, and seamless experiences foster a sense of belonging. A guest who receives a birthday surprise or a free spa treatment after multiple stays is more likely to return. Emotional engagement leads to repeat visits, positive word-of-mouth, and stronger brand loyalty.
Strategies for successful hotel loyalty programmes
To stand out, hotels must implement innovative strategies that make loyalty programmes more engaging and rewarding. Here are some of the most effective approaches:
Personalisation through data-driven insights
Guests expect tailored experiences. AI and CRM tools empower hotels to offer customised rewards based on guest preferences. For instance, some hotels use guest data to provide personalised offers, such as spa discounts for wellness travellers or family packages for parents. Leveraging data ensures guests receive loyalty programme benefits they truly value.
Gamification for higher engagement
Gamification adds excitement to rewards and loyalty programmes. Challenges, tiered achievements, and surprise rewards can boost participation. A boutique hotel introduced a “travel bingo” feature where guests earned points for completing challenges like staying in three different cities. This approach increased their engagement by 40%.
Expanding loyalty beyond the stay
Loyalty shouldn’t end at checkout. Hotels should reward guests for engaging with hotel services—dining, spa visits, mobile app usage, or social media interactions. Some loyalty programmes award points for app interactions like keyless room entry, keeping guests connected beyond their stay.
Subscription-based loyalty programmes
A growing trend in hotel rewards programmes is subscription-based models, where guests pay a flat fee for exclusive perks. Some hotels offer unlimited spa access and personal concierge services through a monthly subscription, ensuring consistent engagement and revenue.
Sustainability-driven rewards
Eco-conscious travellers appreciate sustainability incentives. Some hotels allow guests to donate points to environmental causes, while others offer rewards for opting out of daily housekeeping. These initiatives align with guest values and promote sustainable practices.
Strategic partnerships for extended benefits
Collaborations with airlines, car rental services, and retail brands enhance loyalty programme benefits, which can make the experience surrounding their hotel stay seamless. Some programmes even allow members to convert points into frequent flyer miles, broadening redemption options and increasing programme attractiveness.
Enhanced mobile app experience
Well-designed mobile apps enhance hotel guest engagement. Features like digital check-in, virtual room keys, and real-time chat with hotel staff improve convenience. Many loyalty apps integrate personalised offers, mobile bookings, and loyalty tracking, making it easier for guests to interact with the brand.
Flexible redemption options
Guests value flexibility in how they use rewards. Allowing a mix of points and cash for bookings, tier upgrades, and exclusive experiences ensures broader participation. Some programmes offer points pooling and transfer options, increasing redemption convenience.
Who benefits from hotel loyalty programmes?
Loyalty programmes cater to different types of accommodation providers, each utilising unique strategies to drive hotel guest engagement and retention.
Hotel chains
For hotel chains, loyalty programmes are a powerful way to maximise their extensive brand portfolios. By encouraging cross-stays across various tiers—from budget-friendly options to luxury properties—they create opportunities for guests to explore different experiences within the same brand family.
Independent hotels
Independent hotels excel with personalised hotel rewards programmes, creating unique guest attachments through custom tiers and experiential rewards. Local partnerships and curated experiences foster emotional connections with the local surroundings, setting them apart in competitive markets and deepening hotel guest engagement.
Budget-friendly hostels
Even budget-friendly hostels benefit from rewards loyalty programmes by offering practical perks like free transport passes or local guides. Coalition programmes, such as city-wide travel passes, add value without high costs, appealing to budget-conscious travellers and enhancing their stay.
How can Infosys BPM’s loyalty solutions enhance guest engagement?
Partnering with Infosys BPM enhances hotel loyalty programmesby streamlining operations and boosting guest satisfaction. Our end-to-end solutions manage member services, partner integrations, digital marketing, and analytics, reducing costs and improving scalability. We design personalised rewards programmes that exceed guest expectations, driving engagement and brand loyalty. With 24x7 support, robust data security, and efficient communication strategies, we ensure seamless program management. Infosys BPM helps hotels optimise resources, foster trust, and achieve long-term growth, transforming loyalty programmes into powerful tools for retention and competitive advantage.
