Source: hbo.com
Hotel loyalty programs surge as travelers seek value in uncertain economy
Key points
- Hotel loyalty program membership in the U.S. increased by nearly 15% in 2024, reaching over 675 million members, according to research from CBRE.
- Marriott Bonvoy leads with 228 million members, followed by Hilton Honors and Wyndham Rewards, as loyalty programs now account for over half of occupied hotel rooms.
- Hotel owners face margin pressure as loyalty program fees rise faster than revenue growth.
In what is perhaps a sign of a troubled macro economy filled with consumer uncertainty, travelers are taking full advantage of hotel freebies.
A recent report from commercial real estate firm CBRE shows that hotel loyalty program membership in the U.S. rose by nearly 15% in 2024, surpassing 675 million members and outpacing room growth.
Mega millions of members: By year-end, Marriott Bonvoy led the perk pack with 228 million members, followed by Hilton Honors with 210 million, then Wyndham Rewards, Choice Privileges, and World of Hyatt all north of 50 million members. Loyalty programs accounted for over half of occupied rooms in 2024.
Stabilizing demand: The programs function as occupancy insurance, stabilizing demand during low seasons and economic uncertainty. What originated as tools for frequent travelers has evolved into broad-based demand drivers. Standardized perks — including free Wi-Fi, bottled water, and flexible check-in — have improved or sustained guest satisfaction, while expansion through credit card and affiliate partnerships has fueled enrollment while diluting the share of traditional frequent guests.
Margin pressure: But hotel owners are feeling margin pressure as loyalty program fees rose, topping overall revenue growth. Costs per occupied room climbed, while liability per member dropped, suggesting faster redemption patterns and making it more challenging to target high-value guests with upsells.
