How Independent Hotels Can Compete with Marriott & Hilton’s Loyalty Powerhouses

Loyalty programs are no longer just a perk in the hotel industry—they are a necessity. Marriott Bonvoy and Hilton Honors, two of the biggest loyalty programs, have become powerful revenue engines. But how can independent hotels, without billion-dollar budgets, compete? The good news: They can.

How Big Chains Dominate with Loyalty
Marriott Bonvoy and Hilton Honors are textbook cases of how loyalty programs drive revenue and guest retention.

Marriott Bonvoy (2024)

• 228 million members (+16% YoY)
• 73% of US room nights and 66% globally are from Bonvoy members

Hilton Honors (2024)

• 211 million members (+17% YoY)
• Hilton Honors members contribute 58% of total revenue

Loyalty isn’t just about discounts. These programs gather vast amounts of guest data—preferences, complaints, stay history, spending habits—allowing Marriott and Hilton to tailor their service. That’s why their guests come back.

What Independent Hotels Are Missing
Most independent hotels (90% according to industry estimates) lack a structured loyalty or guest appreciation program. That means:

• No guest history tracking (preferences, complaints, F&B habits)
• No direct channel incentives (leading to higher OTA dependence)
• No personalization, making repeat business more difficult

As a result, independent hotels struggle to create a sticky guest experience. But it doesn’t have to be this way.

How Independent Hotels Can Create an Affordable Loyalty Program
You don’t need a multi-million-dollar CRM to build a loyalty program that works. Here’s a practical, low-cost blueprint:

1. Keep It Simple
Guests don’t want complicated point systems. A basic “Stay X nights, get Y free” model works wonders.

Example:

• Hotels.com Rewards (Stay 10 nights, get 1 free) built a 50-million-member program.
• Independent hotels can replicate this with direct bookings.

2. Reward Immediately
Unlike Marriott Bonvoy (which requires points accumulation), independent hotels should give guests instant value. Options include:

• 5% discount on future stays
• Free drink or appetizer at check-in
• Early check-in / Late check-out after 3 stays

People respond better to instant rewards than long-term point accumulation.

3. Use Tech to Track Guests (Without a CRM Budget)
If you can’t afford a full CRM system, Google Sheets or a small-scale CRM like GuestJoy or Revinate can work.

Basic data tracking includes:

• Name & Email
• Stay History & Preferences
• F&B Consumption & Complaints

Many independent hotels already collect this but don’t use it strategically.

4. Personalize the Experience Like a Big Brand
Loyalty isn’t just about discounts—it’s about recognition. Here’s how you can personalize a guest’s stay without complex tech:

• If a repeat guest always orders red wine, surprise them with a complimentary glass at check-in.
• If they prefer a high floor, pre-assign their favorite room.
• If they love spa treatments, offer a special deal on their next visit.

Marriott and Hilton use AI for this, but independents can do it with manual guest tracking.

5. Reduce Dependence on OTAs
Loyalty members book directly with Marriott & Hilton because they receive exclusive benefits.

Independent hotels can do the same by offering:

• Lower rates than OTAs (even if just by 5%)
• Exclusive perks for direct bookers (e.g., free breakfast or room upgrades)
• A simple referral program (bring a friend, get a discount)

The Results: What Independent Hotels Can Expect

Hotels that implement basic loyalty strategies typically see:

• 3x–4x increase in repeat bookings (based on CRM-driven loyalty data)
• 15–20% decrease in OTA reliance, saving on commission fees
• Higher guest engagement, leading to better reviews & referrals

Independent hotels won’t reach Marriott Bonvoy’s 228 million members, but a small, engaged loyalty base of just 1,000 repeat guests can drive substantial revenue growth.

Loyalty Isn’t Just for Big Chains
Marriott and Hilton dominate because they understand their guests and make them feel valued. Independent hotels can compete by:

• Keeping loyalty simple (Stay X nights, get Y free)
• Rewarding guests instantly
• Tracking guest preferences with minimal tech
• Personalizing experiences without AI
• Encouraging direct bookings over OTAs

Loyalty doesn’t require a billion-dollar budget—just a commitment to knowing and appreciating your guests.

Will you start today?

By Mafalda Diniz