In the hospitality industry, hotel loyalty programs play a substantial role, with 44% of consumers acknowledging that such programs sway their hotel choice.
More so, loyal customers are known to spend 22.4% more and prolong their stay by 28% compared to sporadic customers.
To broaden your understanding, let me share the most crucial hotel loyalty program statistics you should be aware of right away. 🏨🔍
Hotel Loyalty Program Statistics: The Key Data
- Loyalty members booked more than 59.2% of room nights at major hotel chains.
- 44% of consumers say loyalty programs influence their hotel selection.
- This year, Hilton’s loyalty program membership increased by 15% year on year to more than 133 million members.
- Loyal customers spend 22.4% more than sporadic customers and stay 28% longer.
- 58.7% said they do not participate in any hotel loyalty programs.
- 40% of customers enroll in hotel loyalty programs based on location convenience.
- Loyalty members booked 62% of Marriott and Hilton room nights.
- Members of loyalty programs contribute between 30% and 60% of room revenue.
- Between 2020 and 2021, the percentage of leisure travelers who were loyalty members of the hotel they stayed in on their most recent trip increased from 43 percent to 47 percent.
- In the first three months of 2022, Marriott Bonvoy reported 169 million members.
Sources: (LinkedIn, Seven Rooms, Skift, Solonis, Oracle, Hotel News Resource, Research, Net Affinity, Hospitality Net, Pr Newswire.)
Table of Contents
Major Hotel Chains Report Loyalty Members Booking 59.2% of Room Nights
Important takeaway:
| Insight from Data | Rationale |
| Loyalty members dominate hotel reservations | The fact that over half of room nights are booked by loyalty members shows the massive influence and importance of these programs in the hospitality industry. |
| Hotels benefit significantly from loyalty | The statistic underscores the effectiveness of loyalty programs in driving bookings and maintaining a consistent customer base. |
| Consistent engagement leads to occupancy | Regular interactions and benefits offered through loyalty schemes evidently make members more inclined to book, ensuring higher occupancy rates for hotels. |
Source: LinkedIn
44% of Consumers Let Loyalty Programs Guide Their Hotel Choices
Important takeaway:
| Insight from Data | Rationale |
| Loyalty programs play a pivotal role in hotel choice | With nearly half of the consumers admitting that these programs sway their decision, their significance is undeniable in the hotel industry. |
| Hotels need to invest in loyalty schemes | The data suggests that having a robust loyalty program can be a key differentiator in a crowded marketplace. |
| Guest retention can be driven by rewards | Given the influence of loyalty programs, they can be effectively used to ensure repeat business. |
Source: Seven Rooms
Hilton’s Loyalty Membership Swells by 15% to 133 Million This Year
Important takeaway:
| Insight from Data | Rationale |
| Hilton’s loyalty program is witnessing robust growth | A 15% YoY surge in membership indicates the increasing attractiveness of Hilton’s offerings. |
| Over 133 million patrons trust Hilton’s rewards | Such a vast member base shows the significant reach and impact of Hilton’s loyalty initiatives. |
| Hilton is setting industry standards | The impressive growth rate suggests that Hilton is a frontrunner in the hotel loyalty space. |
Source: Skift
Loyal Guests Outspend Others by 22.4%, Staying 28% Longer
Important takeaway:
| Insight from Data | Rationale |
| Loyal customers consistently outspend sporadic ones | The 22.4% increased spending is a clear testament to the worth of customer loyalty. |
| Loyalty results in extended customer lifespan | The 28% longer stay indicates retention and the long-term value of loyal patrons. |
| Investing in loyalty brings tangible returns | Both spending and retention metrics emphasize the ROI of fostering customer loyalty. |
Source: Solonis
Surprisingly, 58.7% Eschew Any Hotel Loyalty Program Membership
Important takeaway:
| Insight from Data | Rationale |
| Majority of travelers aren’t aligned with hotel loyalty schemes | With 58.7% not participating, there’s a significant audience hotels aren’t reaching with their loyalty programs. |
| Opportunity for hotel brands to innovate | This indicates a potential gap in the market, or a need for more compelling loyalty program offerings. |
| Rethinking loyalty strategies is vital | The statistic underscores the need for hotels to revisit and enhance their loyalty program strategies. |
Source: Oracle
Location Drives 40% of Customers to Enroll in Hotel Loyalty Schemes
Important takeaway:
| Insight from Data | Rationale |
| Location is a primary driver for loyalty enrollment | Almost half of the customers prioritize location convenience when joining a hotel loyalty program. |
| Convenience outweighs other potential benefits | Location convenience might be more significant to customers than other perks or rewards traditionally associated with loyalty programs. |
| Hotels must strategically place their properties | For a successful loyalty program, hotels should consider optimizing their locations to cater to the preferences of potential loyal customers. |
Source: Hotel News Resource
Marriott & Hilton See Loyalty Members Reserving a Massive 62% of Nights
Important takeaway:
| Insight from Data | Rationale |
| Loyalty members are a dominant booking segment | A majority of room nights at these chains are reserved by their loyalty members, emphasizing their influence and importance. |
| Loyalty programs drive repeat business | The high percentage suggests that loyalty programs are effective in encouraging repeat stays and driving customer retention. |
| Marriott and Hilton must prioritize member benefits | To maintain and grow this significant user base, both hotel chains should continue to enhance and promote the perks of their loyalty programs. |
Source: Research
Room Revenues Soar: Loyalty Affiliates Contribute 30-60%
Important takeaway:
| Insight from Data | Rationale |
| Loyalty members significantly impact hotel revenue | Their contribution ranges from nearly a third to over half of the room revenue, showcasing their economic importance. |
| Revenue reliance varies among hotel chains | Since the range is between 30% and 60%, some chains may be more dependent on loyalty members than others for their room revenue. |
| Continuous engagement with loyalty members is crucial | Hotels should cultivate and maintain these relationships, given the substantial revenue loyalty members generate. |
Source: Net Affinity
Leisure Travelers’ Loyalty Membership Rises from 43% in 2020 to 47% in 2021
Important takeaway:
| Insight from Data | Rationale |
| Loyalty membership is growing among leisure travelers | There’s a noticeable year-on-year increase, showing a trend where leisure travelers are becoming more aligned with hotel loyalty programs. |
| Hotels are possibly offering more appealing incentives | The increase suggests that hotels may be successfully attracting leisure travelers with enhanced benefits or promotional campaigns. |
| Brand loyalty is becoming more pronounced in the leisure sector | With nearly half of leisure travelers in 2021 choosing to stay in hotels where they’re loyalty members, brand loyalty appears to be a strong factor in their booking decisions. |
Source: Hospitality Net
Marriott Bonvoy Tallies a Staggering 169 Million Members in Early 2022
Important takeaway:
| Insight from Data | Rationale |
| Marriott Bonvoy’s loyalty program is highly popular | With 169 million members, it’s clear that Marriott Bonvoy has widespread appeal and reach in the hospitality sector. |
| Potential massive revenue stream for Marriott | Given that loyalty members typically contribute significantly to room revenues, 169 million members suggest a strong potential for consistent and high revenue. |
| Continuous engagement and member satisfaction is vital | With such a vast membership, Marriott should prioritize ensuring that benefits and offerings meet or exceed member expectations to retain and grow this base. |
Source: Pr Newswire
More Data: https://www.onlinedasher.com/loyalty-program-statistics/
