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Half of Hotel Loyalty Members Say Plans Don’t Deliver Promised Value, Says Report

Research from Accenture shows 43% are active gen AI users Half the hotel loyalty program members in a survey said the plans are no longer…

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Harvey Chipkin

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Research from Accenture shows 43% are active gen AI users

Half the hotel loyalty program members in a survey said the plans are no longer delivering the value they once promised, according to Accenture’s Consumer Pulse Survey 2025. The report also found that 43% of loyalty program members are active generative AI (gen AI) users, defined as people using gen AI tools at least weekly for personal and/or professional reasons, compared with 16% of non-members.

The survey reveals a paradox in the hospitality industry: While loyalty programs remain a valuable tool to increase customer retention, drive higher lifetime value and deliver stronger brand advocacy, with hotels leading the pack versus other consumer industries, there is a growing dissatisfaction among travelers regarding the value of these programs. The survey also found:

  • Loyalty schemes still matter, but perceived value is waning for some: Nearly 6 in 10 (57%) participate in hotel loyalty schemes, but 50% of loyalty members say hotel loyalty programs no longer offer the value they once did.
  • Gen AI has the potential to transform loyalty programs by enabling hyper-personalization and dynamic engagement: Members are 1.9 times more likely to describe gen AI as a “good friend” and 1.6 times as likely to use a personal AI assistant to autonomously solve their travel needs from initial inspiration to a seamless return home.
  • Younger generations (Gen Z and Millennials) are 19% more likely than older generations (Gen X and Boomers) to participate in loyalty programs, but are also quicker to shift allegiance when disappointed.
  • The majority (89%) of hotel loyalty members want to choose their own rewards.
  • Luxury travelers are 25% more likely to join hotel loyalty programs, but their expectations are higher. For example, 9 in 10 of them would like to shape their own experiences.
  • More than 9 in 10 (92%) of loyal hotel customers have recommended their favorite hotel brand or sub-brand to someone else.

Emily Weiss, senior managing director and global travel lead, Accenture, said hotel loyalty programs still have strong pull among guests, especially younger generations. However, she said, they risk losing some of their appeal by not evolving beyond transactional points for perks. While point-based loyalty programs still have their place, said Weiss, “they need to compete with experience-led rewards that capitalize on guests’ desires for immediate satisfaction and personalization.”

A growing number of brands are using AI to improve customer experience with loyalty programs, said Weiss. For instance, she said, these brands are using the technology to segment customer data and use this insight to tailor offers to the individual needs of each guest to further enhance satisfaction, boost revenues and garner loyalty. By leveraging gen AI, said Weiss, hotels can craft experience-led rewards that feel more personal and meaningful, moving beyond generic, points-based loyalty to create moments that resonate. This can help hotels, she said, create memorable experiences, streamline operations and strengthen guest relationships, ultimately helping to boost loyalty and repeat business.

Categories: Lodging | News | NewsTags: Accenture | Lodging

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