“Loyalty Wars: The Strategic Battle of Hotel Giants for Future Success”

The current battleground for major hotel chains is shifting from expanding pipelines to capturing loyalty members. While Marriott boasts the largest portfolio, its loyalty program, Marriott Bonvoy, faces stiff competition from Hilton Honors. Skift reported Hilton’s impressive 110% growth over the past five years, compared to Marriott’s 60%, predicting Hilton might surpass Marriott by the end of 2024.

Marriott’s CEO, Anthony Capuano, emphasized the importance of engagement over sheer size, highlighting efforts to enhance engagement through a robust credit card portfolio and diverse member experiences. The end of the year will reveal the true leader in loyalty and its impact on the hotel sector.

For owners, loyalty programs are a double-edged sword. They attract guests, ensuring future stays, but also come with complexities. The true loyalty of members is debatable, as many belong to multiple programs and prioritize location over points. Owners also bear additional costs as operators offer more points to boost revenue, often without corresponding guest spending.

Historically, luxury hotels have relied on their exceptional service to build genuine loyalty, independent of points programs. These hotels now strategically join soft brands to access distribution while retaining individuality. The luxury segment, akin to high-end consumer products, thrives on exclusivity and exceptional experiences rather than membership rewards. As the hotel industry evolves, balancing genuine loyalty with strategic loyalty programs remains a key challenge.