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Earning points for your bookings in hotels is a practice that has been around for decades and although it might stay in place for many years to come, we are already seeing a shift within the same trend.
What is it? Guests don’t like to receive benefits they won’t use. Benefits that feel general, like a mass email, do not make guests feel like they are appreciated or valuable customers.
This shift in their thinking and expectations is forcing hospitality brands to shake things up and rethink their loyalty strategy, or what we call moving away from points and focusing on the relationship.
Traditional guest loyalty programs are completely transactional. These points-based systems are losing their charm because they focus on transactions rather than building emotional connections.
And this is not attractive anymore. Modern travellers are no longer impressed by the idea of accumulating points that might lead to a reward down the line. They know there is more that can be done, and they expect more.
Instead, they want personalised guest experiences that feel meaningful and add value to their stay. For instance, remembering their preferred room type or surprising them with their favourite drink creates a sense of recognition that points alone cannot achieve.
Loyalty today is about making guests feel seen, heard, and valued—not just during their stay but throughout their entire journey with your brand. It’s these relationship-driven loyalty strategies that turn a one-time visitor into a lifelong advocate.
With that being said, today the strongest loyalty programs are those that focus less on transactions and more on creating genuine connections.
Read more and get inspired: Transactional vs. Relationship marketing in hospitality
As loyalty moves from earning points to building relationships, hotels can focus on creating moments that resonate with guests on a personal level.
This means creating interactions that are more thoughtful and take into account the preferences of the guests. Of course, this is only possible if you have the right amount of data available.
When you and your team can look into guest profiles and find information about a guest’s past purchases, favourite services and even past feedback, you can create this kind of personalised interaction.
Some examples of this:
- Identifying all guests with an upcoming reservation who have stayed five times previously and placing a special welcome back sign in their room.
- Avoid asking guests about how many times they have been at your property because you already know it.
- Assign a room that matches their preferences without having to ask for it.
- Leaving their favourite snack in their room based on their past feedback.
These efforts show guests that they’re valued as individuals, not just as bookings, and show a completely different angle to guest loyalty. However, as mentioned above, it all starts with having access to the correct guest data.
Watch this video to understand more about using your guest data to grow loyalty.
Since we are changing the approach we take to loyalty, we should also change how we measure it. You need to select the metrics that will give you an accurate view of how guests feel about their experiences and whether they choose to return.
In this case, metrics like repeat booking rates and Net Promoter Score (NPS) offer valuable insight. A high NPS suggests guests are willing to recommend your property, a strong indicator of genuine satisfaction.
Additionally, tracking direct bookings versus OTA bookings can help measure loyalty since direct bookings often reflect a deeper connection with your brand.
Guest reviews and feedback also play a critical role since analysing sentiment from reviews can reveal how well your services resonate emotionally with guests and highlight areas for improvement. Together, these metrics provide a clearer picture of loyalty rooted in relationships, not transactions.
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A change in perspective also requires a change in the tools needed, and the truth is that technology is at the heart of transforming guest loyalty from transactional to relationship-based.
When looking at this shift, it makes more than evident the need hospitality brands have for systems that offer a holistic view of their guests, such as a hotel CRM or Customer Data Platform. They both allow hotels to consolidate guest information, from preferences to past interactions, and use it to deliver the highly personalised experiences this article has discussed.
Adapting to the shift from points-based guest loyalty to relationship-driven strategies is no longer optional; it’s essential for long-term business growth. Modern travellers value meaningful connections over generic rewards, and hotels that prioritise personalising guest experiences will stand out in a competitive market.
The question now is, will your brand join this group?
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