Loyalty Gets Personal: How hotels are building emotional connections, not just points

For decades, hospitality loyalty programs were built on a formula that seemed fail-proof: reward frequent stays with points, discounts, and tiered benefits.

- AKARSH MATHUR

But today, that model is falling short. Guests are no longer content with just accumulating points for free nights or upgrades. Loyalty today demands more than transactions—it demands trust, relevance, and emotional connection. The hospitality industry is undergoing a quiet reset, one that goes far beyond the confines of traditional perks. What was once a straightforward game of accumulation has now become a complex equation of personalization, recognition, and brand affinity.

The shift is driven by a new generation of travelers who view loyalty through a different lens. Millennials and Gen Z, who now account for a growing share of the global travel spend, are reshaping the way brands must approach engagement. These guests don't want to be treated as members of a program—they want to be seen as individuals. According to McKinsey, 71 percent of consumers expect companies to deliver personalized interactions, and 76 percent get frustrated when that doesn't happen. More than 75 percent also say that personalized communication makes them more likely to consider and repurchase from a brand. While this doesn't mean standardized rewards are obsolete, it underscores that personalization is no longer optional. It's a core driver of trust and repeat engagement, particularly for younger, value-conscious consumers.