As price gaps narrow, loyalty drives hotel direct bookings

Points, elite recognition, and upgrades are increasingly the key differentiators for hotel brand channels

Industry observers highlight loyalty benefits as the most compelling advantage hotels retain in the ongoing competition between direct booking channels and intermediaries. Price differences between channels have narrowed, but loyalty programs still provide tangible incentives for guests to book directly.

Points accumulation, elite recognition, and upgrade eligibility create added value that third-party platforms typically cannot replicate. For hotels, strengthening loyalty propositions remains a key lever to protect margins and deepen guest relationships.

Key takeaways

• Loyalty drives direct channel value: Points, status recognition, and exclusive perks give hotels a clear differentiator that supports direct booking conversion.
• Elite benefits influence guest choice: Upgrades, late check-out, and personalized amenities often motivate frequent travelers to bypass intermediaries.
• Data ownership strengthens relationships: Direct bookings provide better guest data access, enabling targeted marketing, personalization, and repeat business.
• OTA rewards rarely replace brand loyalty: Third-party platforms may offer incentives, but these typically lack on-property recognition and experiential value.
• Strategic loyalty investment matters: Hotels that actively promote and evolve their loyalty programs are better positioned to sustain direct booking share and reduce distribution costs.

Source: Travel + Leisure

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