Hotel Execs Reveal New Revenue Priority: Making More from Loyalty
Photo Credit: Marriott Bonvoy and Amex Co-brand Credit Cards. Marriott International
Skift Take
Loyalty is no longer just about repeat stays. Hotel execs are increasingly pitching it as a revenue engine that can keep growing even when room pricing slows.
Hotel companies still lead their earnings calls with revenue per available room (RevPAR) — it’s the cleanest shorthand for demand and pricing power.
But throughout this past earnings season, another message from executives kept surfacing: The biggest hotel groups are increasingly treating loyalty as a revenue engine through co-branded credit cards, partnerships, and subscriptions.
They are also using loyalty to shift bookings away from higher-cost distribution: Direct bookings typically cost hotels roughly 4% to 5% of revenue to acquire, versus OTA commissions that top 15%.
“The loyalty platform evolution will bolster our customer acquisition capabilities, widen our competitive moat, and unlock the full potential from IHG One Rewards,” said IHG CEO Elie Maalouf.
Credit CardsCo-branded credit cards are one important way hotel companies make money from loyalty.
Marriott put the biggest number on the board. “Our guidance
