Loyalty pivot: How hotels are cashing in on repeat guests amid high occupancy

Subscribe to enjoy similar stories. As branded hotel occupancy in India nears decade highs, hotel chains are shifting focus from acquiring new guests to ‘farming’ existing ones through enhanced loyalty programmes. A surge in repeat guests and an expanding travel market are compelling players like IHG, Radisson, Marriott, The Postcard Hotel, and Accor to pivot toward member-driven growth.

This evolution of loyalty programmes from simple free-night incentives to a core revenue strategy aims to capitalize on a growing consumer base. Major chains report that members now account for the majority of occupied room nights, with loyalty points increasingly serving as a versatile currency for everything from flights to cricket tournament tickets. In January Elie Maalouf, chief executive of IHG Hotels & Resorts, told Mint on a visit to India that a million room nights are consumed across IHG properties worldwide on an average day.

Of these, 66% are booked by rewards members—a share that is rising in India and other markets. “Loyalty is even stronger now (post-pandemic) because travellers have started to value experiences and that automatically means the want for a closer relationship with brands," Maalouf said. In India, where domestic travel demand remains strong and outbound travel is expanding, the contest is shifting from room inventory to member ownership.

The more frequently travellers engage with a brand’s ecosystem—across stays, flights and experiences—the harder it becomes to switch. For consumers, loyalty points are increasingly becoming currency, not just for discounted stays but for access to flights, curated experiences and high-demand events. For hotel companies, loyalty is no longer peripheral but core to their