Hotel Loyalty Programs: Betting on the Law of Large Numbers

CBRE | July 15, 2024

Executive Summary Despite 5% growth in global room count last year for the five public hotel companies we analyzed for this report, an 11% increase in hotel loyalty program members resulted in a 2.5-percentage-point (pp) increase in total hotel occupancy attributable to loyalty member bookings. Loyalty programs are becoming less dominated by frequent travelers. Heavy users (30+ nights a year) comprise a declining percentage of total membership as the earning of loyalty points has become more tied with credit cards and affiliate programs and less directly with just frequent travelers. Loyalty program redemption revenues increased by...