Explaining Loyalty Pricing

Loyalty pricing is the practice of brands, owners, and management companies offering discounts to members of their loyalty programs who book rooms directly through the hotel instead of through a third party such as Expedia. While loyalty pricing has been around for a while, Hilton kicked it into high gear earlier this year with the rollout of its “Stop Clicking Around” marketing campaign, spotlighting the benefits of joining the Hilton rewards program and booking direct. As a result of this program, Hilton recently announced that the percentage of bookings made through its brand site has grown five times faster than the rate for third-party bookings into Hilton-branded hotels. Marriott, Hyatt, and IHG have since followed suit with discount programs of their own. And, not to be left out, many independent hotels and management firms already have their own programs in place to push direct bookings, ranging from perks like gift cards and free drinks to room upgrades.