Hotel loyalty programs are undergoing a fundamental transformation, as personalization takes center stage over traditional rewards points—especially among Gen Z travelers and high-income earners. According to a recent survey by Mews, nearly 7 in 10 travelers (68%) now say they’ll stay loyal to hotels that offer standout, tailored experiences rather than simply handing out points or perks.
This shift marks a clear departure from the transactional loyalty programs that dominated the hospitality industry for decades. For younger generations, loyalty is no longer about accumulating points to redeem later; it’s about feeling genuinely recognized and understood by the hotels they frequent. The Mews survey reveals that 83% of Gen Z travelers prioritize personalized experiences over points, while 71% of affluent guests share this preference.
Richard Valtr, founder of Mews, sums it up: “The era of transactional loyalty is over. Today’s travelers want genuine recognition—that kind that comes from truly understanding who your customer is, why they have come, and what they aim to achieve during their trips. More personalized experiences, less loyalty tiers.”
The survey of 2,000 travelers also highlights widespread dissatisfaction with traditional loyalty programs. Only 24% of respondents consider hotel rewards the most valuable among various loyalty schemes, ranking behind grocery store rewards, credit card points, gas rewards, and airline miles. Common frustrations include points expiring too quickly (28%), blackout dates (24%), and difficulty earning meaningful rewards (23%).
Customer service remains the ultimate loyalty builder: 88% of travelers say they will return if hotels consistently meet expectations, yet poor service (62%), facility issues (51%), and room problems (49%) are top reasons for losing guests. This underscores how delivering a seamless, personalized experience is critical to winning and retaining loyal customers.
The hospitality industry’s challenge—and opportunity—is to move beyond transactional loyalty toward deeper connections. This means replacing points systems with real-time recognition, seamless digital engagement, and curated offerings that make every guest feel like a VIP. The brands that succeed will evolve into an integral part of guests’ lives, not just during their stays but year-round.
Valtr explains: “Having a captive audience for at least eight hours of a guest stay while they sleep is a great privilege; however, the real potential for hotel brands lies in creating experiences that extend beyond just an overnight visit. This could mean a guest who spends their holidays at a branded residence, works from that same brand’s workspace when on the move, and uses their gym in their home city. It’s about offering them the experiences they want, no matter where they are.”
As hospitality embraces this new loyalty paradigm, hotels that prioritize genuine personalization will redefine guest loyalty in 2025 and beyond—winning hearts and wallets by becoming true partners in their customers’ lifestyles.
