The loyalty programs of major U.S. hotel brands are proving to be more valuable than ever, thanks to a record number of members redeeming points earned during the pandemic. This surge in loyalty program members is helping hotels reduce customer acquisition costs, increase direct engagement with consumers, and offset any occupancy shortfalls during economic downturns. However, an analysis of loyalty program metrics suggests that average loyalty members may be less valuable than in the past, while top-tier members remain highly sought-after. This analysis takes into account several factors that may have influenced loyalty program performance over the past decade, including accounting changes, brand mergers and acquisitions, and dynamic point pricing.
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