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A loyalty program for a hotel

Updated 31 August 2026

Every booking made through an aggregator costs commission, and the guest belongs to the aggregator afterwards. A loyalty program in a hotel is, before anything else, a way of buying the second booking directly.

The direct booking is the whole point

The commission on a booking is far larger than any benefit a hotel would offer for booking direct. A benefit given only on a direct booking is therefore the cheapest distribution channel a hotel can build.

The guest has to be told, and the moment to tell them is while they are staying — at check-in, in the room, at checkout — not in an email three months later.

What to give

Late checkout, a room category upgrade when the hotel is not full, breakfast, or a fixed credit on the next stay. Each costs the hotel little on an average night and is worth a lot to the guest.

A percentage off the rate is the worst option, because it is directly comparable to the aggregator’s price and starts a competition the hotel cannot win.

The guest who came once

Most hotel guests never return, and most hotels never find out why not. Once stays are attached to people, the returning share becomes a number you can actually move, and the guests who came twice become a list worth talking to.

Common questions

How can a hotel get more direct bookings?

Give a benefit that applies only to a direct booking, and tell the guest about it while they are staying. The commission saved is larger than almost any benefit worth offering, which is what makes it the cheapest channel a hotel has.

Should a hotel offer a discount to loyal guests?

Prefer non-rate benefits — late checkout, an upgrade, breakfast, a credit on the next stay. A discount on the rate is directly comparable to the aggregator price and starts a competition on the one axis the hotel cannot win.

Own the second booking

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