Survey by Mews reveals that 68% travelers prefer personalized rewards over traditional hotel incentives

Hoteliers are changing the rules of customer loyalty. A new survey suggests The Commissioned By Mews – the hospitality industry’s leading cloud. nearly 7 in 10 travelers (68%) now say they’ll stay loyal to hotels that deliver standout, personalized experiences – leaving traditional, points-based rewards behind.

The shift in loyalty can be seen clearly: Gen Z prefers experiences to loyalty points (83%), and 71% also prefer high-income earners. 

Richard Valtr is the founder of Mews. He says that “the era of transactional loyalties has passed.” “Today’s travelers want genuine recognition – the kind that comes from truly understanding who your customer is, why they have come and what they aim to achieve during their trips. Less loyalty tiers, more personalized experiences. “The hotels that have a continuous relationship with their customers, understand their preferences, and provide experiences that are meaningful and memorable will be the ones to see their guests return again and again.”

The survey of 2,000 American tourists found that Only 24% of Americans believe that hotel rewards are most valuable, behind grocery store rewards (credit card points), gas rewards (airline miles), and credit card rewards. Additionally, 82% of hotel loyalty members are frustrated with the traditional programs. They cite points expiring quickly (28%), dates for blackouts (24%), and difficulties earning meaningful rewards (23%). Travelers, particularly those in the younger and wealthier segments, are looking for alternatives to traditional programs.

Additional key findings of the survey

The Personalization Revolution is led by Gen Z

• Gen Z travellers are loyal to superior personalized experiences, according to 83%
• 89% of respondents say that personalized amenities will increase their likelihood of returning to a hotel

Rich Travelers Want More Than Just Points

• 71% travelers with incomes of $150,000 to $200,000.
• 83% of this income bracket think that personalized amenities will boost loyalty.
• 80 percent of those who earn over $200k are loyal members, but they want more.

Personalization is possible at scale with technology

• 93% of travelers are willing to share their personal information to improve hotel experience
• 70% of people prefer mobile or kiosk check-ins to traditional front desk check-in
• The preference for self-service is at its highest among Gen Z (82%).

It is not surprising that customer service is what builds loyalty. While 88% of travelers return to hotels if they consistently meet their expectations, 62% of them will leave if the service was poor, 51% cite facility problems, and 49% cite room issues.

Hospitality must shift from transactional to real connections. Real-time recognition is replacing loyalty tiers, points systems, and other traditional methods of rewarding guests. 

“Having an audience captive for at least 8 hours during a guest’s stay is a great priviledge.”However, Valtr added that the true potential of hotel brands is in creating experiences which extend beyond an overnight stay. “The brands who are successful are evolving into a part their guests’ 24/7 experience and evolving this to become relevant in their everyday lives. They deliver truly personalized experiences throughout the year. It could be a guest that spends their holiday at a brand residence, uses the workspace of that same brand when they are on the go, and visits their gym back in their hometown. The goal is to give them the experiences that they want, wherever they may be. This marks a major shift in loyalty away from just collecting points, and towards integrating the brand with the guest’s daily life.”