A Guide to hotel loyalty programs

Quick insights

• Hotel loyalty programs reward you for your stay by offering rewards points and other perks.
• Accumulated loyalty points can usually be exchanged for complimentary nights at partner hotels.
• Co-branded credit cards can offer an initial boost to rewards points through sign-up bonuses as well as providing additional ways to earn points at your favorite hotels.

When choosing a hotel for your next trip, there are many options you may want to consider. One way to help maximize potential savings and rewards is to join a hotel loyalty program. Below, we'll walk you through hotel loyalty programs, the types of benefits typically offered and some further considerations.

What are hotel loyalty programs?

The short answer is that hotel loyalty programs are exactly what they sound like – a program that rewards loyalty to a specific hotel brand. Many major hotel brands have them, and while the specifics vary from one brand to the other, the basics are often similar throughout the industry.

Loyalty programs award points and other perks to customers for every booking they make, and those points can add up to complimentary nights at your favorite hotels. These programs are typically free to join and can be a great way to turn this year’s business trips into next year’s vacation.

Benefits of hotel loyalty programs

There are many benefits to joining a hotel loyalty program, as outlined below.

• Free: Most loyalty programs are free to join.
• Perks: Programs often include perks like complimentary breakfast, Wi-Fi, room upgrades and more.
• Earning: Programs reward you for your loyalty by offering points for staying at an eligible hotel.loyalty-programs-pts
• Points: Loyalty points can typically be redeemed for complimentary nights.
• Rates: Most loyalty programs offer member-only rates for your bookings.loyalty-programs-pts
• Credit cards: Rewards can be earned through regular use of co-branded credit cards.

Drawbacks of hotel loyalty programs

While there are advantages to joining a hotel loyalty program, there are also some disadvantages you should consider.

• Restrictions: Loyalty programs can restrict your choice in many destinations as you try to stay at partner hotels.
• Cost: Similar to the restrictions, the desire to remain loyal to your favorite hotel chain can lead to paying more for a loyalty program hotel if there are other hotel options where you are traveling.
• Diluted earnings: While you may be able to avoid the restrictions and costs by joining a loyalty program every time you book at a new hotel brand, this could result in earning small amounts of points across multiple hotel chains, which can make it difficult to earn sufficient benefits at any one chain to redeem for a complimentary night.
• Blackouts: Loyalty programs sometimes include blackout dates when awards are not able to be used for bookings.
• Expiration: Many loyalty rewards have an expiration date or require you to actively earn new points each year to avoid losing them.

How to choose the right loyalty program for you

Given the wide variety of loyalty programs, it can be difficult to choose the right one for you. These tips should help make that decision a little easier.

• Preexisting loyalty: If you’re already frequently booking with one or more brands, it would make sense to join their loyalty program.
• Perks: Read up on the various perks of membership at your potential hotel loyalty programs and choose the ones that best meet your needs and fit your lifestyle.
• The nuts and bolts: Compare the earn and redeem rates at your favorite hotels’ loyalty programs to find the best fit for you.

Co-branded credit cards and other considerations

Most hotel loyalty programs offer co-branded credit cards, and many banks have their own travel credit cards that offer the freedom to use earned points to book stays across a variety of hotel brands.

• Sign-up bonuses: Many co-branded credit cards offer sign-up bonuses if you qualify for opening an account; it is helpful to review those offers to see if a credit card sign-up bonus is a good fit for you. Please note that these co-branded cards frequently charge an annual fee and require a minimum spend before the bonus points are rewarded, so it’s important to weigh the pros and cons before applying for a new line of credit.
• Travel cards: If you’re worried about becoming a hotel jack-of-all trades who ends up with small points balances across multiple hotel chains, another option for you could be a travel credit card that earns points that can be used in the card’s travel portal to book hotels across any number of brands.
• Priority Pass: While typically thought of as an airport lounge card, Priority Pass membership also includes hotel benefits that might be useful to you.

Recap

Hotel loyalty programs are becoming increasingly widespread, and it can be difficult choosing the one that is the best fit for you. That said, they are typically free to join, offer numerous perks just for being a member and can lead to accumulating enough rewards points to earn complimentary nights at your favorite hotels. If you are thinking of traveling soon, a hotel loyalty program might be a great addition to your plans.