Repeat guests become hotel chains' new growth engine
New Delhi, Feb. 24 -- As branded hotel occupancy in India nears decade highs, hotel chains are shifting focus from acquiring new guests to 'farming' existing ones through enhanced loyalty programmes. A surge in repeat guests and an expanding travel market are compelling players like IHG, Radisson, Marriott, The Postcard Hotel, and Accor to pivot toward member-driven growth.
This evolution of loyalty programmes from simple free-night incentives to a core revenue strategy aims to capitalize on a growing consumer base. Major chains report that members now account for the majority of occupied room nights, with loyalty points increasingly serving as a versatile currency for everything from flights to cricket tournament tickets.
In January Elie Maalouf, chief executive of IHG Hotels & Resorts, told Mint on a visit to India that a million room nights are consumed across IHG properties worldwide on an average day.
Of these, 66% are booked by rewards members-a share that is rising in India and other markets. "Loyalty is even stronger now (post-pandemic) because travellers have started to value experiences and that automatically means the want for a closer relationship with brands," Maalouf said.
In India, where domestic travel demand remains strong and outbound travel is expanding, the contest is shifting from room inventory to member ownership. The more frequently travellers engage with a brand's ecosystem-across stays, flights and experiences-the harder it becomes to switch.
For consumers, loyalty points are increasingly becoming currency, not just for discounted stays but for access to flights, curated experiences and high-demand events. For hotel companies, loyalty is no longer peripheral but core to their business. The underlying logic is straightforward: members book more directly, return more often, and spend more on property.
For hotel chains navigating rising competition and distribution costs, loyalty is no longer a marketing add-on but a structural pillar of revenue strategy. Last year, InterGlobe Hotels and Accor announced plans for a joint loyalty programme that would allow customers to use hotel points for flight bookings and vice versa, blending their hospitality and aviation rewards. Etihad Guest, the loyalty programme of Etihad Airways, recently partnered with The Postcard Hotel, an India-focused luxury hospitality brand, expanding redemption options for members in South Asia.
Achin Khanna, managing partner, strategic advisory for hospitality consultancy Hotelivate, said, "Hotel loyalty is evolving from generic point-collection schemes into sophisticated, data-driven ecosystems. Earlier, their utility felt limited because rewards were distant, restrictive, and sometimes impersonal. Today, hotel companies are using analytics to understand guest behaviour in real time, offering targeted benefits, experiential upgrades, and meaningful recognition. The shift isn't just about earning points anymore, it's about delivering relevance, immediacy, and genuine value that makes loyalty feel truly rewarding."...
To read the full article or to get the complete feed from this publication, please
Contact Us.