U.S. travelers are doubling down on hotel brand loyalty as preferences around flexibility and value evolve, according to a newly published report by SiteMinder.
The report found that American travelers have a greater willingness to book domestic trips than last year, with a strong preference for direct bookings and loyalty initiatives. This changing behavior presents an opportunity for hotels to capture a larger share of loyal guests, Brian Reising, regional vice president of U.S. and Latin America at SiteMinder, said in a release obtained by Hotel Dive.
One hotel company looking to do just that is Choice Hotels International, which last month launched enhanced benefits for its Choice Privileges loyalty program. The updated benefits are designed to cater to changing guest demand around flexibility, experiences and value, according to Choice Hotels Vice President of Loyalty Nandika Suri.
In a conversation with Hotel Dive, Suri explained what trends are driving changing hotel guest demand and how the shift has influenced Choice’s latest loyalty play.
Travelers want flexibility and value
Broadly, travelers are craving more flexibility and value for their money, according to Suri. SiteMinder tracked a similar trend, with travelers reporting their primary motivations for direct booking with a hotel brand are a desire for control and flexibility with changes (66%), a preference for direct communication (61%) and access to better prices and package deals (57%).
When it comes to hotel loyalty rewards, specifically, guests want to engage with brands that offer more flexibility around point redemption, Suri said. They also want more value out of the rewards they can redeem.
“Value has been really important,” Suri said, adding that regardless of segment, consumers “are interested in getting maximum value out of the brands.”
Therefore, how hotel brands think about elevating the guest experience via their loyalty program for the end-to-end journey is going to continue to be important, Suri said.
SiteMinder’s Reising echoed a similar sentiment, saying a big opportunity for U.S. hotels “lies in identifying their guests’ preferences to craft standout, loyalty-driving experiences from the very first digital interaction.”
A “shift toward more meaningful, elevated experiences” is underway, as evidenced by more travelers choosing superior or luxury rooms year over year, according to the SiteMinder report. Guests are “increasingly prepared to pay more for what they truly value,” Reising said.
Choice Hotels caters to changing traveler demand
Choice Hotels is catering to shifting traveler demand through recent loyalty program enhancements, including by enabling members to earn rewards more frequently and achieve Elite status faster.
Last month, the company announced that members will be able to gain milestone rewards every five qualifying nights between status tiers, with each tier requiring five fewer nights than before. Members will be able to reach Gold Elite status at five nights, Platinum Elite status at 15 nights and Diamond Elite status at 35 nights, according to Choice.
“Guests are telling us [that] they’re looking for more frequent recognition,” Suri said. “They’re looking for rewards within reach.”
Hilton also updated its loyalty rewards benefits last month, similarly lowering the threshold for earning rewards points and reaching status. The company announced that next year, Hilton Honors members will be able to earn Gold status with 25 nights per year, 15 nights less than the current 40-night requirement. Hilton loyalty members will also be able to earn Diamond status faster, needing 50 nights instead of the current 60 nights.
Another updated perk for Choice Privileges members is that they can qualify for status faster through Elite Qualifying Credits earned through hotel stays and through spending with the Choice Privileges Mastercard on travel and everyday purchases, Choice announced. With this perk, Suri said, Choice is trying to meet travelers where they are.
“Consumers that sign up for our card are more engaged, they are more loyal to the brand, so we wanted to make sure that we're actually recognizing and rewarding those customers,” she said.
Starting in 2026, Choice Privileges members will also be able to transfer points to friends and family. This comes amid a rise in multigenerational travel.
The point-sharing perk allows Choice to give travelers the flexibility they are demanding at a time when consumers have a range of trip purposes and budgets, Suri explained.
If travelers are “wanting to use [rewards] for themselves, that’s great, but then, if they want to share it with a friend, or a family member to do multigenerational travel, or even just to gift, I think that becomes an option for them, so it’s really adding that flexibility,” Suri said.
In 2024, hotel loyalty membership across five key brand families — Choice Hotels International, Hilton, Hyatt Hotels, Marriott International and Wyndham Hotels & Resorts — surged 14.5% year over year to more than 675 million members, according to CBRE.
Choice currently has more than 73 million loyalty members, per a company spokesperson.
