What is a reward program?
A reward program is a system businesses use to incentivize customer loyalty by offering benefits - such as points, discounts, or perks - in exchange for repeat purchases or engagement, encouraging customers to return and choose their brand over competitors.
What to Include in Your Hotel Rewards Programs
The Loyalty Gap in Hospitality
Getting new guests to book a room has become harder and more expensive. Online ads cost more, booking sites take a big cut, and there's always another hotel offering a better deal. But here's the thing - guests who come back again and again are much more valuable. They're easier to reach, they often spend more, and they're more likely to leave good reviews or recommend your hotel.
The problem is that many loyalty programs aren't built with today's travelers in mind. Some guests sign up for points but never use them. Others don't feel that the rewards are worth it. What really keeps guests coming back? It's not just about giving something away for free. It's about making people feel welcome, remembered, and appreciated.
A good rewards program should do more than hand out points. It should make your guests feel like it's worth choosing your hotel every time they travel. In this article, we'll break down the kinds of perks guests actually care about - like free nights, local experiences, and personal touches - and how you can use them to build loyalty that lasts.
The problem is that many loyalty programs aren't built with today's travelers in mind. Some guests sign up for points but never use them. Others don't feel that the rewards are worth it. What really keeps guests coming back? It's not just about giving something away for free. It's about making people feel welcome, remembered, and appreciated.
A good rewards program should do more than hand out points. It should make your guests feel like it's worth choosing your hotel every time they travel. In this article, we'll break down the kinds of perks guests actually care about - like free nights, local experiences, and personal touches - and how you can use them to build loyalty that lasts.
The Psychology of Repeat Guests

Before building or improving a rewards program, it's important to understand why people choose to come back to the same hotel. While price and location matter, the real reasons guests return often come down to how they feel during and after their stay.
People return when they feel valued
Travelers want to feel like more than just a booking number. When they're greeted by name, offered a room they like, or simply remembered from a past stay, it builds a personal connection. Small details like these can make a big difference. A loyalty program can help make those moments happen more often.
Ease and familiarity also matter
Staying at a hotel where everything just works saves guests time and stress. They already know how check-in works, where to park, and what kind of breakfast to expect. Familiarity brings comfort, especially for frequent travelers. If your rewards program helps guests skip lines, book faster, or access perks easily, they're more likely to stick with you.
Rewards should feel achievable
Many guests give up on loyalty programs because they think the rewards are too far out of reach. If a guest has to stay 20 nights before getting anything back, they might not even bother. Offering smaller rewards sooner - like a free drink after one or two stays - keeps them engaged and excited to return.
People are driven by recognition
Even something simple, like a thank-you message for returning guests or a small welcome-back treat, shows that you notice their loyalty. It's not always about big rewards - it's about showing that you care.
Guests return to places that make them feel good. Loyalty is emotional, not just logical. Your rewards program should reflect that by offering perks that feel personal, reachable, and meaningful. When guests feel seen and appreciated, they're not only more likely to return - they'll also talk about your hotel to friends and family.
People return when they feel valued
Travelers want to feel like more than just a booking number. When they're greeted by name, offered a room they like, or simply remembered from a past stay, it builds a personal connection. Small details like these can make a big difference. A loyalty program can help make those moments happen more often.
Ease and familiarity also matter
Staying at a hotel where everything just works saves guests time and stress. They already know how check-in works, where to park, and what kind of breakfast to expect. Familiarity brings comfort, especially for frequent travelers. If your rewards program helps guests skip lines, book faster, or access perks easily, they're more likely to stick with you.
Rewards should feel achievable
Many guests give up on loyalty programs because they think the rewards are too far out of reach. If a guest has to stay 20 nights before getting anything back, they might not even bother. Offering smaller rewards sooner - like a free drink after one or two stays - keeps them engaged and excited to return.
People are driven by recognition
Even something simple, like a thank-you message for returning guests or a small welcome-back treat, shows that you notice their loyalty. It's not always about big rewards - it's about showing that you care.
Guests return to places that make them feel good. Loyalty is emotional, not just logical. Your rewards program should reflect that by offering perks that feel personal, reachable, and meaningful. When guests feel seen and appreciated, they're not only more likely to return - they'll also talk about your hotel to friends and family.
The Must-Have
When most people think of hotel loyalty programs, they think of earning free nights. And for good reason - it's still the most wanted reward among travelers. In survey after survey, guests say a free stay is the top reason they join or use a loyalty program. But as a hotel owner, offering free nights can feel like giving away revenue. The key is to offer this popular perk in a smart, controlled way.
Guests love free nights because they're simple and valuable
A free night feels like a big win. It's easy to understand and has clear value. Guests don't need to do mental math about points - they just know they're getting something that saves them money. That said, you don't need to give away a room after just a few stays. Many hotels offer a free night after a certain number of paid stays or points earned.
Structure it in a way that protects your bottom line
One approach is to limit free nights to off-peak seasons or slower days of the week. This way, you fill rooms that might otherwise sit empty. You can also set blackout dates, like holidays or local event weekends, when demand is already high. Another tactic is to require a minimum number of nights in a stay to unlock the free night - such as "Stay 3 nights, get the 4th free."
Be clear and honest with guests
Whatever rules you set, make sure they're easy to find and understand. If guests feel tricked or frustrated by confusing terms, your program could actually hurt your reputation. Clear terms build trust - and trust builds loyalty.
Offer other ways to use points
Not every guest will rack up enough stays to earn a free night quickly. Give them smaller milestones to reach along the way. For example, allow them to use points for room upgrades, dining credits, or late checkouts. This keeps them engaged even before they hit the big reward.
Free nights work - but only when they're part of a bigger strategy. By offering them thoughtfully, you can make guests happy without hurting your revenue.
Guests love free nights because they're simple and valuable
A free night feels like a big win. It's easy to understand and has clear value. Guests don't need to do mental math about points - they just know they're getting something that saves them money. That said, you don't need to give away a room after just a few stays. Many hotels offer a free night after a certain number of paid stays or points earned.
Structure it in a way that protects your bottom line
One approach is to limit free nights to off-peak seasons or slower days of the week. This way, you fill rooms that might otherwise sit empty. You can also set blackout dates, like holidays or local event weekends, when demand is already high. Another tactic is to require a minimum number of nights in a stay to unlock the free night - such as "Stay 3 nights, get the 4th free."
Be clear and honest with guests
Whatever rules you set, make sure they're easy to find and understand. If guests feel tricked or frustrated by confusing terms, your program could actually hurt your reputation. Clear terms build trust - and trust builds loyalty.
Offer other ways to use points
Not every guest will rack up enough stays to earn a free night quickly. Give them smaller milestones to reach along the way. For example, allow them to use points for room upgrades, dining credits, or late checkouts. This keeps them engaged even before they hit the big reward.
Free nights work - but only when they're part of a bigger strategy. By offering them thoughtfully, you can make guests happy without hurting your revenue.
Beyond Free
While free nights are a strong motivator, they're just one piece of a truly effective rewards program. If you want to build deeper loyalty and encourage repeat bookings, consider adding tiered benefits - a structure where guests unlock better perks the more they stay. This taps into something powerful - the human desire to earn status and feel special.
Why tiers work
People like to feel progress. When a guest sees they're close to reaching the next level of your program, it encourages them to book with you again instead of trying a competitor. It's the same reason airline and credit card loyalty programs use gold, platinum, or elite levels - status feels like a reward in itself.
Designing simple, clear tiers
You don't need to overcomplicate it. A basic 3-tier system works well -
Tier 1 (New Members) - Small perks like free Wi-Fi, a welcome drink, or early check-in when available.
Tier 2 (Frequent Guests) - Add benefits like room upgrades, late checkout, and priority customer service.
Tier 3 (Top Guests) - Offer VIP touches like free breakfast, guaranteed availability, or even access to local experiences.
Make sure guests understand how to reach each tier and what they'll get. For example- Stay 5 nights in a year to reach Silver status is simple and motivating.
Make the rewards feel personal and exclusive
The higher the tier, the more special the perks should feel. A personalized welcome message, remembering a guest's room preference, or giving them a surprise gift can go a long way. These don't have to be expensive - just thoughtful.
Recognize guests even outside of stays
You can also reward guests who engage with your brand in other ways, like referring friends, leaving reviews, or booking directly instead of through third-party sites.
In short, tiered programs don't just reward guests - they encourage them to stick with you over time. When done right, they create a sense of pride and belonging that keeps people coming back, not just for the perks, but for the feeling of being recognized and valued.
Why tiers work
People like to feel progress. When a guest sees they're close to reaching the next level of your program, it encourages them to book with you again instead of trying a competitor. It's the same reason airline and credit card loyalty programs use gold, platinum, or elite levels - status feels like a reward in itself.
Designing simple, clear tiers
You don't need to overcomplicate it. A basic 3-tier system works well -
Tier 1 (New Members) - Small perks like free Wi-Fi, a welcome drink, or early check-in when available.
Tier 2 (Frequent Guests) - Add benefits like room upgrades, late checkout, and priority customer service.
Tier 3 (Top Guests) - Offer VIP touches like free breakfast, guaranteed availability, or even access to local experiences.
Make sure guests understand how to reach each tier and what they'll get. For example- Stay 5 nights in a year to reach Silver status is simple and motivating.
Make the rewards feel personal and exclusive
The higher the tier, the more special the perks should feel. A personalized welcome message, remembering a guest's room preference, or giving them a surprise gift can go a long way. These don't have to be expensive - just thoughtful.
Recognize guests even outside of stays
You can also reward guests who engage with your brand in other ways, like referring friends, leaving reviews, or booking directly instead of through third-party sites.
In short, tiered programs don't just reward guests - they encourage them to stick with you over time. When done right, they create a sense of pride and belonging that keeps people coming back, not just for the perks, but for the feeling of being recognized and valued.
Localized Experiences

Travelers today are looking for more than just a clean room and a good night's sleep - they want meaningful, memorable experiences. This is especially true for guests who are part of a loyalty program. They're not just staying with you because it's convenient. They've chosen your hotel, often over others, and they want to feel like that choice matters. One of the best ways to reward them is by offering local experiences that go beyond the basics.
What are localized experiences?
These are perks that connect guests with the culture, people, and flavor of your area. Think - tickets to a local art show, a walking food tour, a wine tasting at a nearby vineyard, or even a voucher for a popular neighborhood cafe. These small but special touches can make a trip feel truly one-of-a-kind.
Why guests value them
Most travelers, especially younger ones, want to live like a local and see the real side of the place they're visiting. Local experiences make that possible. They also create stories - something guests will remember, talk about, and associate with your hotel.
You don't need a big budget to make this happen
Partnering with local businesses is a smart way to offer value without taking on the full cost. Restaurants, tour guides, or attractions often love the exposure and are happy to offer discounts or special access in return for referrals. For example, a nearby spa might provide a free add-on service for your loyalty members.
How to offer these perks in your program
-Include local experiences as redeemable rewards using loyalty points.
-Offer them as tier-based perks for frequent guests.
-Create experience packages guests can choose at booking or check-in.
Make it easy and exciting
Highlight these perks on your website and in your email campaigns. Use photos and short descriptions to show what guests can expect. The easier it is for them to see and claim these rewards, the more likely they are to feel excited -and appreciated.
By offering local experiences, you're not just giving guests a reward - you're giving them a memory. And that's the kind of thing that keeps them coming back.
What are localized experiences?
These are perks that connect guests with the culture, people, and flavor of your area. Think - tickets to a local art show, a walking food tour, a wine tasting at a nearby vineyard, or even a voucher for a popular neighborhood cafe. These small but special touches can make a trip feel truly one-of-a-kind.
Why guests value them
Most travelers, especially younger ones, want to live like a local and see the real side of the place they're visiting. Local experiences make that possible. They also create stories - something guests will remember, talk about, and associate with your hotel.
You don't need a big budget to make this happen
Partnering with local businesses is a smart way to offer value without taking on the full cost. Restaurants, tour guides, or attractions often love the exposure and are happy to offer discounts or special access in return for referrals. For example, a nearby spa might provide a free add-on service for your loyalty members.
How to offer these perks in your program
-Include local experiences as redeemable rewards using loyalty points.
-Offer them as tier-based perks for frequent guests.
-Create experience packages guests can choose at booking or check-in.
Make it easy and exciting
Highlight these perks on your website and in your email campaigns. Use photos and short descriptions to show what guests can expect. The easier it is for them to see and claim these rewards, the more likely they are to feel excited -and appreciated.
By offering local experiences, you're not just giving guests a reward - you're giving them a memory. And that's the kind of thing that keeps them coming back.
Personalized Offers
Not all hotel guests are the same, so why should your rewards program treat them that way? One of the best ways to make your loyalty program stand out is by offering personalized rewards - perks that feel tailored to the individual guest. This doesn't just make people feel special - it also increases the chance they'll return.
Why personalization matters
Guests notice when a hotel remembers them. Whether it's knowing they prefer a room on a high floor, always traveling with their dog, or love red wine - these small details can turn a standard stay into something personal. When guests feel seen and understood, they're more likely to come back and recommend your hotel to others.
What personalization looks like in a rewards program
Instead of giving every guest the same generic offer, imagine sending a loyal guest who always stays over the holidays a special early-bird rate for December. Or offering a food credit to a guest who regularly dines in your restaurant. These types of rewards show that you're paying attention - and that builds trust.
Leveraging data the right way
You already have valuable information at your fingertips- booking history, room preferences, stay frequency, and even special requests. By leveraging data from your property management system (PMS) or booking engine, you can create more relevant, targeted offers for each guest.
Of course, it's important to respect privacy. Make sure your guests know their data is being used only to improve their experience. A simple message like, We noticed you loved your room with a view - here's 10% off the same room next time, shows you care, without overstepping.
Keep it simple and helpful
Don't try to guess every detail or overwhelm guests with too many options. Focus on what's most likely to add value. Even small personal touches - like including their name in an email or recommending nearby events during their stay - can make a big impact.
In a world where travelers have endless options, personalization helps your hotel stand out. When you use guest data to offer meaningful, well-timed rewards, you create a loyalty program that feels like it was designed just for them - and that's exactly what brings them back.
Why personalization matters
Guests notice when a hotel remembers them. Whether it's knowing they prefer a room on a high floor, always traveling with their dog, or love red wine - these small details can turn a standard stay into something personal. When guests feel seen and understood, they're more likely to come back and recommend your hotel to others.
What personalization looks like in a rewards program
Instead of giving every guest the same generic offer, imagine sending a loyal guest who always stays over the holidays a special early-bird rate for December. Or offering a food credit to a guest who regularly dines in your restaurant. These types of rewards show that you're paying attention - and that builds trust.
Leveraging data the right way
You already have valuable information at your fingertips- booking history, room preferences, stay frequency, and even special requests. By leveraging data from your property management system (PMS) or booking engine, you can create more relevant, targeted offers for each guest.
Of course, it's important to respect privacy. Make sure your guests know their data is being used only to improve their experience. A simple message like, We noticed you loved your room with a view - here's 10% off the same room next time, shows you care, without overstepping.
Keep it simple and helpful
Don't try to guess every detail or overwhelm guests with too many options. Focus on what's most likely to add value. Even small personal touches - like including their name in an email or recommending nearby events during their stay - can make a big impact.
In a world where travelers have endless options, personalization helps your hotel stand out. When you use guest data to offer meaningful, well-timed rewards, you create a loyalty program that feels like it was designed just for them - and that's exactly what brings them back.
Small Touches That Build Big Loyalty
Sometimes, it's the little things that make the biggest difference. In the hospitality world, small, thoughtful gestures can create lasting memories and deepen a guest's connection to your hotel. These small touches don't have to cost a lot, but they show guests that you care about their experience beyond just filling a room.
Why small gestures matter
Guests may forget a discount or a points balance, but they rarely forget how they felt during their stay. A simple handwritten note, a warm welcome drink, or remembering a guest's birthday can create a personal bond. These moments build emotional loyalty, which often leads to repeat visits and positive word-of-mouth.
Examples of small but powerful perks
1. Handwritten welcome notes - Leaving a personalized message in a guest's room can brighten their day and make them feel truly welcome.
2. Welcome drinks or snacks - Offering a complimentary beverage or treat upon arrival adds a touch of hospitality that feels generous.
3. Birthday or anniversary surprises - Recognizing special occasions with a small gift or discount shows you care about your guests' lives outside of the hotel.
4. Room preferences remembered - Noticing and honoring guest preferences - like their favorite pillow type or room location - makes a stay comfortable and stress-free.
Thank-you emails after the stay- A simple message thanking guests for choosing your hotel and inviting feedback keeps communication open and warm.
Cost-effective and meaningful
These touches don't need a big budget. A handwritten note takes a few minutes, and small treats can often be purchased in bulk. The return on investment is high because guests feel appreciated and are more likely to choose your hotel again.
Building loyalty during the stay
Remember, loyalty isn't built only by offering points or rewards after the stay - it's built during the stay. Every positive interaction is a chance to make guests feel valued.
Incorporating these small, genuine touches into your loyalty program makes your guests' experience memorable, emotional, and worth returning for. It's a simple but powerful way to build loyalty that lasts.
Why small gestures matter
Guests may forget a discount or a points balance, but they rarely forget how they felt during their stay. A simple handwritten note, a warm welcome drink, or remembering a guest's birthday can create a personal bond. These moments build emotional loyalty, which often leads to repeat visits and positive word-of-mouth.
Examples of small but powerful perks
1. Handwritten welcome notes - Leaving a personalized message in a guest's room can brighten their day and make them feel truly welcome.
2. Welcome drinks or snacks - Offering a complimentary beverage or treat upon arrival adds a touch of hospitality that feels generous.
3. Birthday or anniversary surprises - Recognizing special occasions with a small gift or discount shows you care about your guests' lives outside of the hotel.
4. Room preferences remembered - Noticing and honoring guest preferences - like their favorite pillow type or room location - makes a stay comfortable and stress-free.
Thank-you emails after the stay- A simple message thanking guests for choosing your hotel and inviting feedback keeps communication open and warm.
Cost-effective and meaningful
These touches don't need a big budget. A handwritten note takes a few minutes, and small treats can often be purchased in bulk. The return on investment is high because guests feel appreciated and are more likely to choose your hotel again.
Building loyalty during the stay
Remember, loyalty isn't built only by offering points or rewards after the stay - it's built during the stay. Every positive interaction is a chance to make guests feel valued.
Incorporating these small, genuine touches into your loyalty program makes your guests' experience memorable, emotional, and worth returning for. It's a simple but powerful way to build loyalty that lasts.
Build for Humans, Not Just Transactions
At the heart of every successful hotel loyalty program is a simple truth - people don't just want rewards - they want to feel valued and understood. Loyalty isn't built on transactions alone; it's built on genuine connections and meaningful experiences. When you design your rewards program with real guests in mind, you create more than just repeat bookings - you build lasting relationships.
The perks you offer should balance both tangible and emotional value. Free nights and points are important, but so are personalized offers, local experiences, and small thoughtful touches that show you care. Guests want to feel recognized for their loyalty, not just rewarded with discounts.
Don't be afraid to experiment. Ask your guests what perks matter most to them and be open to tweaking your program based on their feedback. Leveraging guest data responsibly can help you deliver offers that feel personal and relevant, increasing engagement and satisfaction.
Finally, remember that loyalty is a journey, not a quick fix. It takes time and consistent effort to build trust and create memorable experiences. Focus on creating a program that feels human - one that makes guests excited to come back and proud to recommend your hotel.
By doing this, you turn your rewards program into more than just a marketing tool. You turn it into a meaningful part of your hotel's story and a reason guests choose you again and again.
The perks you offer should balance both tangible and emotional value. Free nights and points are important, but so are personalized offers, local experiences, and small thoughtful touches that show you care. Guests want to feel recognized for their loyalty, not just rewarded with discounts.
Don't be afraid to experiment. Ask your guests what perks matter most to them and be open to tweaking your program based on their feedback. Leveraging guest data responsibly can help you deliver offers that feel personal and relevant, increasing engagement and satisfaction.
Finally, remember that loyalty is a journey, not a quick fix. It takes time and consistent effort to build trust and create memorable experiences. Focus on creating a program that feels human - one that makes guests excited to come back and proud to recommend your hotel.
By doing this, you turn your rewards program into more than just a marketing tool. You turn it into a meaningful part of your hotel's story and a reason guests choose you again and again.
Frequently Asked Questions
How can tiered benefits improve guest loyalty?
Tiered benefits create a sense of achievement and exclusivity, encouraging guests to book more stays to unlock better perks and recognition.
What are localized experiences and why do they matter?
Localized experiences connect guests with the culture and attractions of the area, making their stay memorable and unique beyond just the hotel room.
What types of rewards work best for families or group travelers?
Consider perks like free breakfast for kids, discounts on extended stays, room upgrades, or vouchers for local family attractions.
How can I track whether my rewards program is successful?
Measure metrics like repeat booking rates, average spend per stay, sign-up rates, and redemption activity to gauge program performance.