Hotel loyalty programs encourage travellers to book with a particular chain again and again. They drive repeat business and capturing share of wallet. By offering points and serving up perks that continue to improve as the guest travels more, customers feel rewarded, and the cycle continues.

At least, that’s the idea. But what happens when the benefits you’re achieving stop adding much to the experience? What should a traveller do when the next-highest level practically mirrors the status you already have? At some point, any new benefits you can unlock become rather tokenistic.

Quite often, the early-to-mid tiers of each hotel program can be the most rewarding. That is, you’re getting practical, valuable benefits at a reasonable rate of return for what you’re spending. Sometimes, at the higher tiers, there can be such little difference in perks that you begin to question your loyalty entirely. To wonder whether you should keep all your eggs in one basket, or switch some of your business to a rival chain that’s going to bring better value.

At the end of the day, it boils down to this: can hotel loyalty programs be too tokenistic? In my view, they regularly are.

Where hotel loyalty programs don’t stack up

Hotel loyalty programs start strong. You often get something ‘free’ just by signing up. Gratis in-room Wi-Fi, perhaps. Or in some cases, late check-out without a fee. Practical benefits that make a traveller stop and think, ‘wow, this program is great.’ When that’s their first impression, you know what happens next – the traveller books with the same chain the next time they travel.

But somewhere along the way, there’s a disconnect. What begins strong ends up finishing weak, for those who travel more than most. This is what I mean by loyalty reaching the point of tokenistic. It’s not just one hotel chain that does it – it’s most of them.

Take Brilliant by Langham, as an example. Just for signing up – for free, I may add – members can save 5% at participating restaurants. Great! But what does ‘Ruby’ get you, which is the top tier in Langham’s program? Your discount is 10% – and you’ll need it, because unlike the top rung of most other hotel programs, you’re still paying for breakfast. That’s even after you’ve spent US$24,000 or more in your most recent membership year to earn Ruby.

Yes, drop enough cash that could otherwise buy you a modest new car every year, and in return, you’ll save $5 more than a base-level member for every $100 you send Langham’s way. It’s not just Langham that falls into this category.

Luxury rival Shangri-La has adjusted its ‘welcome amenity’ in recent years. What was previously a choice of three favourited valuable items for mid-tier Jade members is now a choice between three mediocre options at check-in. US$10 in laundry credit, US$10 in dining credit, or 100 Shangri-La Circle Points …. which are worth even less at just US$6.66 when redeemed. I can’t say that a US$6.66-$10 on check-in (on what’s usually quite an expensive stay…) feels like a reward for loyalty. Instead, this aspect of the hotel loyalty program makes me wonder why I bother at all.

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Benefits that work until they don’t

Let’s look at a few other hotel loyalty programs, and where they hit – and miss – the mark. One that I regularly engage with is Accor Live Limitless (ALL). Based on a mix of work and personal travel, I tend to retain Platinum status every year. For me, Platinum offers a reasonable suite of benefits compared to the travel that’s required, and I’m content at this tier. But would I ever aim for Diamond: the level above Platinum? Unless something changes, not a chance.

ALL Diamond requires literally double the spend of Platinum (€10,400 per year, versus €5,600 for Platinum). But are the benefits doubled in return? No – and in fact, they’re barely any different from Platinum. The biggest additional benefit is the provision of ‘Dining & Spa Rewards’. This is where Diamond members receive 10 separate €10 vouchers to use at hotel restaurants and spas throughout the year.

Sorry, but in return for spending an extra €5,600 every year, the proposition is that I’ll get €100 in credits that I wouldn’t have received as Platinum? This… must be a joke? Sadly, that’s the reality. So, when I know my ALL Platinum will be safe for another year, I direct my stays elsewhere and build ‘backup status’ in another program. The design of Accor’s hotel loyalty program makes me disloyal, because the benefit of engaging more is too tokenistic.

Other chains can instead be a little petty with the benefits. Hilton Honors, for instance, gives free daily breakfast to its Gold and Diamond members (in most markets). But what does that ‘free breakfast’ look like? In Australia, if I order a barista-made coffee (even in Melbourne, the ‘coffee capital’), a charge is applied. If I dare touch the hash browns rather than scooping the cereal, I have to pay for that as well. Suddenly, the ‘free breakfast’ earned as a reward is anything but free: it’s an obligation to pay more. What part of this breakfast experience was a reward for my loyalty, exactly?

Point Hacks pro tip: Some credit cards and charge cards include gratis hotel status, without meeting the usual annual requirements. For instance, the Amex Platinum Card includes Hilton Honors Gold, Marriott Bonvoy Gold and Radisson Rewards Premium. It also includes a complimentary Accor Plus membership, which in itself offers instant Accor Live Limitless Silver status.

What should hotel loyalty programs do instead?

Clearly, hotel loyalty programs serve a purpose – to drive revenue. If hotels began giving too much away for free, their guests would ultimately spend less. Under that scenario, the hotel would be better off not operating the program at all – and we’d be right back where we started. Instead, hotels have to balance member recognition with shrewd revenue management.

Some hotel programs feel very transactional – spend this, get that. Done. But the better programs bring intangible value – the sort of thing that’s hard to quantify, but drives serious brand loyalty. For instance, while I’d never aim for Diamond under Accor’s current program design, I still value my Platinum perks very highly. What’s more, I really value the unexpected. When I’m ‘expecting’ to get one thing, because it’s a published benefit of status, but receive something far more valuable in return.

For instance, I’ve spent hundreds of nights at Accor hotels over the years. But I still remember the one time that my upgrade wasn’t just to a nicer room, but the Presidential Suite. My eyes lit up when I saw the room name on the check-in form. I remember counting how many doors and rooms I had… all for my overnight stay. Was it excessive? Of course. Is it likely to happen again? Probably not, given that Presidential Suites are technically excluded from the room types normally eligible for upgrades. But did it make me vow to do everything I could to keep my status for another year? You bet.

When a hotel says ‘thanks for your loyalty’ by charging for the coffee and food at the ‘free breakfast’, I’ll remember the hotel as being cheap. I won’t feel valued – I’ll feel like loyalty is a transaction to save $5-$10 over what the same meal would have cost at an outside cafe. But when a hotel chain delivers what it promises and occasionally goes above and beyond when it’s least expected, that’s what becomes most memorable. That’s where the program moves from tokenistic into a real money driver, because I’m motivated to engage (and spend) again and again.

Now, about that ALL Diamond status… perhaps there’s more to it than meets the eye?

Featured image courtesy of Adobe Stock / Serhii.

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Are hotel loyalty programs worth it? was last modified: May 6th, 2025 by Chris Chamberlin