Hotel Loyalty Programs in 2024–2026: How 675 Million Members Are Reshaping Global Hospitality

Hotel loyalty programs (Wyndham, Hilton, Marriott, Hyatt) have evolved far beyond their origins as benefits for frequent travelers. Today they serve as powerful engines of demand, driving occupancy, boosting direct revenue and shaping guest expectations worldwide. By the end of 2024, membership reached over 675 million people, reflecting a structural shift in how the hospitality industry builds relationships with its customers.

New brand partnerships, expanding credit card ecosystems and the rise of personalized travel experiences transformed loyalty programs into essential tools for market competitiveness. But with the influx of new members comes a new challenge: converting “retail travelers” into high-value, repeat guests.

Membership expansion signals program vitality

Loyalty program membership grew by 14.5% in 2024, outpacing room growth at 6.7%. As a result, members per room increased by 7.4%, reaching 137 members per available room — a record level.

This surge was driven by 21 new brand launches and partnerships, opening programs to new markets and travelers. Although standardized benefits such as free Wi-Fi and early check-in have pressured margins, guest satisfaction has remained stable since 2016.

Balanced engagement: more members, fewer stays per member

For the first time in several years, loyalty program revenues and liabilities grew in near parity: 8.3% versus 8.4%. Total liabilities reached $2.4 billion, while revenues climbed to $1.2 billion.

Yet liability per member dropped by 5.3%, reaching $17.85 — barely a fraction of a room night. Members are redeeming points as fast as they earn them, motivated by incentives and renewed travel demand.

Average room nights per member fell from 1.1 to 1.0, illustrating the shift from traditional frequent travelers to credit-card-driven participation, multi-program overlap and occasional guests.

Loyalty-driven occupancy growth

Loyalty members accounted for 52.8% of occupied rooms in 2024 — a two-percentage-point increase year-over-year and far above the 1.2% growth in overall U.S. demand.

Room nights booked by loyalty members rose by 12%, showing their critical role in stabilizing occupancy across seasons. Programs effectively act as “occupancy insurance,” protecting hotels from volatility.

Cost vs. benefit: still a strong deal for hotel owners

Loyalty program fees increased by 4.4%, outpacing revenue growth at 2.7%. Costs reached $5.46 per occupied room, or 1.6% of total revenue — slightly above 2023 levels.

Despite rising expenses, loyalty programs remain one of the most cost-efficient distribution channels compared with OTAs. They strengthen direct bookings, deepen brand relationships and reduce intermediary dependence.

Advantages and challenges in a changing membership landscape

The broad membership base diversifies demand and boosts resilience during downturns. However, fewer room nights per member complicate efforts to cultivate high-value guests.

Brands must enhance personalization, refine reward structures and build stronger emotional loyalty to convert casual guests into consistent, high-spend members.

Measuring ROI becomes mission-critical

Owners, investors and asset managers increasingly benchmark loyalty program ROI against alternative channels. Those programs that produce higher lifetime value, stronger direct-booking performance and higher repeat rates will justify premium valuations in hotel assets.

International Investment analysts conclude that loyalty programs are entering a phase of strategic maturity. The strongest advantage will belong to hotel brands capable of merging personalization, technology and high-value guest targeting. As loyalty programs expand, the winners will be those who can convert scale into sustainable revenue and meaningful guest engagement.