Hotels that invest in transparent data practices, seamless cross-device journeys, and AI-driven personalization can strengthen loyalty, reduce acquisition costs, and elevate customer experience in an increasingly competitive and privacy-focused digital landscape.
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GLOThe hospitality industry is navigating a turbulent digital landscape. Rising media costs, stricter privacy regulations, and shifting traveler behaviors are redefining how hotels connect with guests. The latest Cendyn Hotel Digital Marketing Performance Index (H1 2025) highlights these challenges—while also pointing to opportunities for hoteliers to strengthen customer experience (Cx) and loyalty through data-driven strategies.
Key Takeaways for Loyalty and Customer Experience
1. Higher Media Costs Demand Smarter Loyalty Strategies
With digital media costs rising 20–40% year-over-year due to OTA competition and limited ad inventory, hotels must think beyond paid visibility. Loyalty programs and direct-booking incentives can offset rising acquisition costs by:
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Encouraging repeat stays over one-off transactions.
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Building direct relationships that reduce reliance on expensive paid channels.
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Offering value-added perks (exclusive rates, free upgrades, personalized offers) that OTAs can’t easily replicate.
Takeaway: Loyalty isn’t just about guest retention—it’s a cost-efficiency strategy in an inflationary ad market.
2. Privacy and Consent Shape Guest Trust
The rollout of Google Consent Mode V2 has created tracking gaps, leading to a 38% rise in CPA and declines in visible conversion rates. But this also signals a deeper shift: travelers are more aware of privacy, and how hotels handle data is becoming a loyalty driver.
Hotels that embrace transparent consent practices and leverage first-party data will be better positioned to:
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Deliver personalized offers without overstepping privacy boundaries.
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Build trust by respecting guest preferences on data use.
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Ensure accurate loyalty recognition across channels, so members feel consistently valued.
Takeaway: Data transparency is now part of the customer experience—and trust is loyalty’s foundation.
3. The Cross-Device Journey Matters for Guest Engagement
The Index shows that desktop drives 63% of bookings and 71% of revenue, but mobile dominates inspiration and early engagement. Hotels must ensure seamless guest journeys across devices:
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Mobile for discovery and loyalty engagement (app-exclusive rewards, inspiration content).
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Desktop for conversions (streamlined booking paths, loyalty recognition).
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Consistent offers and pricing across both to avoid distrust.
Takeaway: Guests don’t see channels—they see one brand. A fragmented journey weakens loyalty.
4. AI-Powered Campaigns Enhance Personalization and Loyalty
Google’s Performance Max for Travel Goals (PMTG) saw bookings rise more than 200% and ROAS climb to 25:1. Its AI-driven targeting and personalization capabilities make it a powerful tool for loyalty-driven marketing. Hotels can:
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Reach high-intent travelers with tailored loyalty offers.
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Scale direct bookings while keeping costs efficient.
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Use dynamic creatives to showcase member-exclusive perks or repeat-stay benefits.
Takeaway: AI isn’t just for efficiency—it’s a new lever for personalizing loyalty engagement at scale.
5. Price Transparency Impacts Trust and Retention
Regulations around “junk fees” and price parity enforcement mean that inaccurate rates can hurt visibility and bookings. For loyalty members, inconsistent pricing is even more damaging—it erodes trust.
Takeaway: Rate accuracy and member-only pricing transparency are non-negotiable for both compliance and customer retention.
Conclusion
The Cendyn Index makes one thing clear: loyalty and customer experience are no longer “nice-to-haves” but strategic essentials.
Hotels that combine:
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Transparent data practices,
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Seamless cross-device journeys, and
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Personalized, AI-driven engagement
…will not only withstand rising digital costs but also build guest relationships that extend far beyond a single booking.
In 2025 and beyond, the winners in hospitality will be those who treat loyalty as the ultimate performance metric.
Source: Cendyn
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