Hoteliers make significant gains in loyalty memberships through revamped and more value-offering schemes

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The leisure travel activities were projected to record a strong rebound in 2022. The 12 months were expected to be the year of widespread changes in hotel loyalty programs. Many of the leading hoteliers have invested significantly to enlist new members amid fierce competition in the segment. The investment and the strategy to revamp the loyalty and rewards schemes have led to big gains for the leading firms globally.

• InterContinental Hotel Group (IHG), for instance, recorded a growth of 30% during the 12 months. The revamped terms of the loyalty program, along with a bigger marketing push, drove the membership numbers to 11 million higher. In H1 2022, the firm added a new tier-and-bonus point earning structure. Furthermore, the firm also added options to pick bonuses rather than receive the standard ones. The 2022 loyalty scheme revamp saw the biggest changes since its inception, and the results are evident in the form of new enlisted members.
• In October 2022, Radisson Group also announced that the firm is revamping its loyalty scheme, under which it will be easier for members to get VIP upgrades. Under the revamped program, members are required to record only 30 nights or 20 stays annually to reach the VIP level, unlike 60 nights or 30 stays previously. This along with other benefits and perks has made the loyalty scheme even more lucrative for travelers globally.

There has been a post-pandemic boom in hotel loyalty membership programs, with many of the leading firms reporting a significant surge in the number of new enlisted members in 2022. 

• Marriott International, for instance, reported it had 173 million members at the end of September 2022, up from 164 million members in March 2022. Furthermore, 60% of the bookings came from its loyalty program members.
• Hilton also experienced a growth of 15% in its loyalty program members during the 12 months. As of December 2022, the firm has more than 133 million members registered within the loyalty program. Choice Hotels also added another 10 million members to its program, bringing the total count to approximately 63 million.

In 2023, PayNXT360 expects more global and leading hoteliers to innovate with their loyalty programs by adding new value-added services for their members. This will subsequently keep driving the membership numbers for all of these players, as the travel demand is projected to continue from the short to medium-term perspective.

To create more value for their members and to make their scheme more lucrative, PayNXT360 expects these firms to forge many more alliances with other players in the travel industry. For instance,

• Marriott International has forged partnerships with many leading airlines, including Emirates, globally. This allows the members to earn loyalty points on both programs. Furthermore, members can transfer their points earned on Marriott stays to redeem on flights with partner airlines.
• Airline operators are also projected to innovate with their loyalty and reward schemes. In December 2022, Emirates and Air Canada announced a joint loyalty program. Under the collaboration, the loyalty programs offered by these two airlines will allow travelers to earn and redeem points on both airlines, as preferred by the member.

To compete with these leading and global hotel groups, independent brands are also expected to innovate in the loyalty and rewards programs space over the next three to four years. With the travel industry projected to record strong growth momentum, PayNXT360 expects new membership sign-ups to continue at a rapid pace for hotel firms and groups from the short to medium-term perspective. This will keep driving innovation, competition, and growth in the overall loyalty and rewards programs market.

To know more and gain a deeper understanding of the global loyalty programs market, click here.