Recently, CoStar marked the tenth anniversary of Marriott’s acquisition of Starwood Hotels & Resorts. Reading the coverage, I was struck by Marriott CEO Tony Capuano’s emphasis on loyalty and the importance of keeping travelers within the company’s portfolio.
The acquisition brought together Marriott Rewards, The Ritz-Carlton Rewards, and Starwood Preferred Guest. Their eventual consolidation under Marriott Bonvoy created a loyalty brand that connects the hotel brands beneath it. Hilton Honors serves a similar role across Hilton’s portfolio.
That is the point independent hoteliers need to consider. For a committed member, Bonvoy or Honors can determine where the hotel search begins. The individual property comes into play only after the traveler has decided which loyalty program they want to use.
With broad portfolios covering different price points and travel occasions, these companies give members plenty of reasons to stay within the family. Their soft brands also offer distinctive hotels with local character. A guest can choose a boutique experience and still collect points and receive member benefits.
Some travelers are also committed to a program and are hard to convert, especially once they reach elite status.
For independent hotels, being different is no longer enough.
Give Guests a Reason to Choose You
We should be honest about what we are asking a loyal brand member to give up. Points have value. So does progress toward status. Members also value the benefits they receive during a stay and the exclusive experiences available through their programs. An attractive website and a promise of great service may not outweigh those considerations.
An independent hotel needs to understand why someone would choose it anyway. That reason could be its setting, a particular experience, or a reputation for service that guests trust. Whatever it is, it needs to be clear before the booking. If the hotel’s strongest selling points only become apparent after arrival, the property could miss out on many first-time reservations.
Independents Have Rewards Options Too
Independent hotels do not have to approach this without a rewards offering. Programs designed for independents can give guests a financial reason to book while letting the property keep its identity.
Several loyalty programs are available for independent hotels. Two that come to mind are The Guestbook and Stash Hotel Rewards. The Guestbook, a TCRM partner, rewards guests for booking directly with participating hotels. Its options include cash back or rewards toward a future stay. Stash Hotel Rewards takes a points approach, allowing members to earn and redeem points across participating independent hotels.
These programs deserve consideration. They encourage direct bookings and can help independent hotels reduce their reliance on OTAs. A shared network also gives guests opportunities to use their rewards beyond one property, which matters when their next trip takes them somewhere else.
Still, joining an independent rewards program requires more than adding a logo to the website. Guests need to understand the benefit while they are making their decision. Staff should be able to explain it, and the hotel needs to evaluate the cost against the business it generates. Participation alone will not produce loyalty.
OTAs such as Expedia and Booking.com have also developed their own loyalty programs, offering rewards or member discounts. These can appeal to travelers who actively seek those benefits and may bring additional bookings to independent and branded hotels alike. That business comes with OTA commissions and, depending on the offer, additional discounts or benefits. The hotel also needs to consider whether the guest’s loyalty is to the property or to the booking platform. More than likely, that loyalty is to the booking platform, but the stay still gives the hotel an opportunity to turn that guest into a loyal repeat customer.
Make Recognition Part of the Stay
At TCRM, we work with many independent hotels that have loyal repeat guests. Service and recognition are important reasons those guests return.
Consider a couple who visits the same resort each fall. They prefer a quiet room away from the pool and usually make a dinner reservation for their first evening. Before their next visit, the hotel confirms their room preference, offers to arrange dinner, and plans a small welcome amenity for their arrival.
The hotel remembers the guests and takes steps to make their return feel special. Delivering that consistently requires accurate guest records, cross-department communication, and staff who use the information and technology available.
The relationship also needs attention between visits. An invitation tied to a guest’s interests or usual travel dates has more relevance than another promotion sent to the entire database. Independent hotels can assign a person or team to act as loyalty ambassadors, ensuring their most loyal guests are well cared for during and between stays. Even a small property can assign someone to track preferences and stay in touch.
Keep an Eye on Profitability
From a revenue management perspective, loyalty should help produce profitable business. A hotel needs to know whether its efforts bring back guests, generate direct reservations, or reduce the cost of acquiring bookings.
Rewards and guest benefits have costs. Compare those costs with other channels and consider whether an incentive influenced the booking or rewarded someone who would have booked anyway. Track repeat business and referrals where possible, rather than judging success by enrollment numbers alone.
The Marriott-Starwood merger expanded Marriott’s portfolio and reinforced the loyalty program’s power as a brand in its own right. Independent hotels are competing with these loyalty brands at a disadvantage. To earn repeat business, they need to prioritize service and guest recognition.
A credible rewards option can support that effort by giving guests another reason to choose the hotel. The property then needs to deliver a stay worth repeating and maintain the relationship after checkout. Building loyalty deserves the same attention as pricing and distribution.