How hotel loyalty programs are evolving to meet new guest wants and drive direct bookings
By Cathleen Draper
Hotel loyalty programs have long operated on a simple promise: Stay often, earn points, get a free night. But that model is rapidly evolving to something more nuanced – and more competitive, and guests are latching on. According to CBRE, loyalty program membership grew by 14.5 percent in 2024.
Today’s travelers aren’t content to let points accumulate. They want instant, meaningful rewards: Food and beverage perks, on-property offerings, and exclusive personalized experiences. At the same time, the way guests book is shifting, with U.S. travelers increasingly going direct – drawn by flexibility, control, and the sense that a brand truly knows them. Loyalty programs are partially responsible for driving that shift.
Now, major hotel brands are rethinking loyalty from the ground up, shifting from transactional programs to ones built on personalization, connection, and expanded partnerships that extend beyond the hotel room. We spoke with loyalty leaders at Wyndham, Marriott, and Hilton about how their programs are evolving, what’s driving the change, and what the future holds for guests and owners alike.
How are hotel loyalty programs evolving beyond traditional points-and-free-nights models?
Michael Shiwdin, Group Vice President, Loyalty and Partnerships at Wyndham Hotels & Resorts, Platinum Industry Partner: Points and free nights still matter, but loyalty today is about influencing decisions, not just rewarding past stays. We’re seeing a fundamental shift from purely transactional loyalty to emotional loyalty. Travelers aren’t only looking for a free room; they want a more meaningful return on their time, including personalized experiences and moments worth remembering. At Wyndham, nearly half of all check-ins come from Wyndham Rewards members, making loyalty not just a benefit program, but a core demand driver.
Peggy Roe, Executive Vice President and Chief Customer Officer at Marriott International, Platinum Industry Partner: Today, some travelers are motivated by collecting points to redeem, while others want access and recognition – and some, of course, want it all. Travelers expect us to know them better, and they are seeking experiences that enrich their lives, spark inspiration, and create the kinds of memories that stay with them long after the trip ends.
Brad Anderson, Vice President, Hilton Honors Program at Hilton, Platinum Industry Partner: The hotel loyalty landscape continues to evolve in step with how people travel today. While earning and redeeming points and access to benefits remain important to travelers, members are also looking for greater flexibility, recognition, and choice in how they use their loyalty. Increasingly, that means having more options to use points across different stay occasions and experiences. At Hilton, we’re focused on expanding how Hilton Honors members can engage with the program. This includes more attainable and meaningful benefits, new ways to earn and redeem, and unique experiences and partnerships.
How has your loyalty program changed to meet today’s guest expectations?
Shiwdin: We’ve evolved Wyndham Rewards by focusing on what drives engagement and bookings. Members have more ways to earn, redeem, and stay connected between trips. Wyndham Rewards Insider is a good example of that evolution. It’s a paid subscription designed to deliver immediate value – automatic status, savings, and perks. Simultaneously, it was designed to complement, not compete with other facets of the program – be that traditional status or our credit and debit card offerings. For owners, that means more committed members and more repeat business coming through brand channels.
Anderson: With the recent introduction of Diamond Reserve, we’ve created our most elite tier yet with elevated benefits and more personalized service. New offerings like Confirmable Upgrade Rewards allow members to secure premium room upgrades at the time of booking, bringing greater certainty and flexibility to trip planning. Guaranteed late check-out gives members more control over their stay, while access to Hilton’s Premium Clubs provides on-property experiences and amenities.
Hilton Honors Adventures is an extension of the Hilton Honors program that expands loyalty beyond the traditional hotel stay, providing members new ways to book, earn, and redeem points through immersive experiences, including outdoor lodging with AutoCamp and luxury ocean travel with Explora Journeys.
What’s driving the shift toward more experiential or personalized rewards in hotel loyalty?
Roe: Consumers are craving experiences, and that’s driving their travel. The post COVID mindset of getting back out in the world at any cost drove people to seek their passions and not wait for these experiences to come to them. It made sense for us to follow our consumers and figure out how we could help facilitate more of what they love. A second dynamic is that consumers expect you to know a lot more about them. They know companies can store preferences and past transactions, so they expect that companies will use that data to create a better experience.
Anderson: Many travelers are being more intentional about how they travel and what they take away from their experiences. Hilton’s 2026 Trends Report reflects this, highlighting the rise of “whycations” driven by connection, comfort, and purpose. Travelers are increasingly seeking experiences that feel personal and restorative, whether that means slowing down, spending time in nature, or engaging more deeply with culture and place.
That shift is also reflected in how travelers use loyalty today, with 58 percent reporting that they use loyalty points to try new properties, activities, and destinations. Travelers want their loyalty to reward them in ways that feel relevant throughout their journey, whether it be exclusive access to sporting and music events or on-property experiences such as culinary tastings and wellness offerings.
How are hotels using guest data and technology to tailor loyalty benefits to individual travelers?
Shiwdin: Hotels already have valuable insight into how guests book and stay. Technology, and increasingly AI, helps turn that insight into smarter decisions, like when to reach a guest, what offer to present, or which benefit will matter most. The goal is to make the reciprocity of loyalty seamless, intuitive, and personal. When done right, it simply feels like the brand understands the traveler.
Roe: In the Marriott Bonvoy app, guests will find a section where they can start to tell us about the things they love. That, coupled with the ability AI gives consumers to ask for what they want more directly, will give us the ability to respond, engage, and delight better and faster.
What role does loyalty play in driving direct bookings?
Shiwdin: Loyalty is one of the most effective tools for shifting bookings to lower-cost, direct channels. When guests know they’ll get better value, better recognition, and a smoother experience by booking direct, they change their behavior. For owners, that translates into stronger margins and more control over distribution, without relying as heavily on third-party platforms.
What new partnerships are being integrated into loyalty programs?
Shiwdin: Loyalty is expanding beyond the hotel stay itself. We’re seeing more integration with dining, entertainment, and experiences that fit naturally into members’ everyday lives. The key is choosing partners that are easy to understand, genuinely valuable to guests, and economically sound for owners. Relevance drives engagement – and engagement drives stays.
Roe: We are constantly following consumer trends and culture to ensure we stay relevant. We know that the top passions that drive travel are sports, culinary, music, and the outdoors. For example, in 2026, Marriott is the Official Hotel Supporter of the FIFA World Cup in the U.S., Canada, and Mexico. Members can redeem points for tickets and other experiences.
Anderson: Partnerships are an important way loyalty programs can meet travelers where they are. For Hilton Honors, that includes strategic collaborations with brands like Explora Journeys, AutoCamp, and Small Luxury Hotels of the World, which expand access to distinctive stays. Together, these partnerships broaden how members can experience Hilton Honors while continuing to deliver the consistency and reliability the program is known for.
What does the future of hotel loyalty look like over the next three to five years?
Roe: I expect the future of hotel loyalty programs to go through some rapid evolution. As technology improves and it gets easier to know and engage with customers one-on-one across their journey, loyalty will become more personalized and my hope is that we will be able to rid those manual processes and focus more on human connection. That’s the foundation of our industry.
Anderson: Looking ahead, hotel loyalty will continue to take shape alongside evolving traveler preferences – with elevated service and experiences as key differentiators in an industry where every room has a bed and a shower. As travelers become more intentional about where they go and how they spend their time, loyalty will be defined less by transactions and more by relevance and connection. For Hilton Honors, that means staying closely connected to our members and responding thoughtfully as those preferences change. The program will continue to adapt in ways that reflect how people want to travel today and in the future.
How are reimagined loyalty programs changing the economics for hotel owners at the property level?
Shiwdin: Modern loyalty programs are increasingly about improving property-level economics. They help drive repeat stays, increase direct bookings, and reduce reliance on higher-cost channels. In addition, by leveraging data on guest behaviors and putting it into the hands of hotel owners, they can better anticipate guest needs, driving higher experience scores and ancillary revenue opportunities. When loyalty is done right, it’s a growth engine.
Roe: An effective hotel loyalty program requires balancing the economics and the benefits of all stakeholders. If the value for owners or members tips too far in one direction or the other, the model breaks down. When in balance, the program can be a powerful engine for owners, hotels, and a flywheel for the company. If we deliver on great experiences, our customers will love us, buy direct, and keep spending with us. Our owners make more money, build more hotels, and our brands continue to grow and flourish.
Anderson: Strong loyalty programs benefit owners by driving higher-quality demand and deeper guest relationships. Hilton Honors delivers a pipeline of loyal travelers who are more inclined to book directly through the lowest-cost channel and engage consistently with our brands. With a majority of guests being Hilton Honors members, the program plays an important role in supporting RevPAR performance and helping owners manage distribution costs more effectively. As the program continues to adapt to meet traveler needs, it helps support occupancy and long-term brand preference, creating value not only for guests, but for owners and their businesses as well.
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