CBRE analyzed the loyalty programs of 5 major U.S. public hotel companies (Choice, Hilton, Hyatt, Marriott and Wyndham). 11% increase in hotel loyalty program members led to a 5% increase in total hotel occupancy from loyalty member bookings. Loyalty program redemption revenues grew by 11% year-over-year in 2023, reaching a record $1.1 billion likely due to a combination of more travel and redemptions, higher average daily rates (ADRs), and more points required for a free night.

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GLOCBRE dives into latest statistics of global hotel loyalty programs. To determine the hotel loyalty market’s growth and overall health, CBRE analyzed the loyalty programs of 5 major U.S. public hotel companies (Choice, Hilton, Hyatt, Marriott and Wyndham).
Key takeaways:
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Increased Occupancy from Loyalty Members: Global room count increased by 5%. 11% increase in hotel loyalty program members led to a 5% increase in total hotel occupancy from loyalty member bookings.
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Shift in Loyalty Program Demographics: Loyalty programs are becoming less dominated by frequent travelers. The proportion of heavy users (those staying 30+ nights a year) is declining as loyalty points are increasingly tied to credit cards and affiliate programs rather than travel frequency.
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Record Redemption Revenues: Loyalty program redemption revenues grew by 11% year-over-year in 2023, reaching a record $1.1 billion. This increase is likely due to a combination of more travel and redemptions, higher average daily rates (ADRs), and more points required for a free night.
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Loyalty Program Liability: The average dollar value of unredeemed points per member was 87% of pre-pandemic levels by the end of 2023.
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Rising Fees for Hotel Owners: Total fees charged to hotel owners for loyalty program participation rose by 14.3% in 2023, outpacing the 9.4% growth in total hotel revenue. This increase was likely driven by higher room rates, greater occupancy by loyalty members, and higher program fees per occupied room. However, the average cost remained modest at $3.59 per available room per day.

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Source: CBRE
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