How savvy hoteliers are cashing in with loyalty
As we are all aware, hoteliers in 2025 are being forced to rethink what drives revenue, with economic pressures mounting and consumer spending tightening.
Add to that April’s National Insurance hike, rising OTA commissions now eating up 15 - 25 per cent per booking, intensified metasearch competition, and soaring customer acquisition costs, up 60 per cent over the past five years *.
Together, they expose just how outdated the growth tactics we are all used to - discounting and chasing new bookings - have become.
Adding to the challenge, UK holidaymakers are taking fewer trips overall, averaging 1.6 leisure trips in 2024 compared to 2.3 in 2019, even though they’re spending 19 per cent more per trip on average **.
Many hoteliers I have spoken to say that this shift is prompting them to turn their focus to the customers they already know. By doubling down on loyalty, we not only reduce costly churn but also unlock more consistent, long-term value from returning guests.
We’ve seen this change firsthand at Profitroom. Among the hotels and pub groups we work with, loyalty schemes are increasingly being recognised as a strategic tool to drive direct bookings, traffic, and protect more profitable revenue streams against increasingly expensive OTA commissions.
The results speak for themselves. Strategically planned loyalty tools boost direct website traffic by up to 40 per cent, driving higher-value bookings and reducing reliance on costly third-party platforms.
For example, Welcome Break recently launched Profitroom Loyalty across all of their sites and within the first week were pacing 45% YOY, picking up business significantly higher, compared to their +20% YOY YTD.
For hoteliers struggling to compete with aggressive OTA pricing, loyalty offers a clear path to take back control.
Yet many operators are still missing out or fail to unlock the full potential of loyalty schemes, costing hotels direct revenue and missed long-term guest engagement.
Modern loyalty schemes offer hoteliers far more than simple discounts for repeat guests. They’re now highly personalised, with rewards tailored to guest habits, like seasonal dining menus for couples who often book for two, or family day-out experiences for those who regularly book with children.
Many schemes enable tiered benefits, such as closed group rates (exclusive offers available only to members), added perks or direct booking discounts.
In return, hotels gain marketing consent and valuable guest data, which feeds into email marketing and CRM systems, allowing teams to tailor offers and build stronger relationships.
Properly integrated, these schemes can also feed directly into Google and metasearch engines. Since closed group rates aren’t public, they’re exempt from rate parity rules, giving hotels greater flexibility to offer special deals to loyal customers.
We have also noticed major brands are doubling down on loyalty, especially to capture and retain high-value guests from the US and Europe. With international travel booming, loyalty schemes are now vital to turn one-off visitors into repeat customers for long-term revenue.
While smaller groups and independents might not have the same global marketing muscle, loyalty is one area where they can punch above their weight. With the right tools and expertise, they can compete effectively and build lasting guest relationships.
To be effective, loyalty needs to be joined-up with booking engines, websites, metasearch, and marketing all working in sync. Without that, it’s easy to miss opportunities.
Those who get it right will reap the rewards. Not just in repeat bookings, but in owned data, improved visibility, and a stronger commercial footing as the market evolves.
*Customer acquisition costs have risen by 60% over the past five years across industries, including hospitality (Source: HubSpot State of Marketing Report 2024).
**Guests are now taking fewer trips, but spending more per trip. UK holidaymakers took an average of 1.6 leisure trips in 2024 compared to 2.3 in 2019, but average spend per trip is up 19% (ABTA Travel Trends Report, 2024).