Millennials are a valuable marketing target for hoteliers. This report analyzes the preferences of this demographic as they relate to loyalty programs to help hotels boost enrollment.

1. Software Advice IndustryView:
Hotel Loyalty Participation
Trends and best practices from the industry

2. Hotels are working hard to attract millennials; they're the top spending traveler
segment today and most now have the time to travel. We found that loyalty
program members often make up about half of a hotel's total reservations, so
this report reveals survey results from millennial travelers that answers the
following questions:
• How many millennials are currently enrolled in hotel loyalty programs?
• How does income affect millennial engagement in hotel loyalty programs?
• Why do they join these programs? And what rewards do they most often
redeem points for?
Abstract

3. Eighty-six percent of respondents are not currently participants, showing that
perhaps millennials are more brand-loyal than previously thought.
One loyalty program8%
Two loyalty programs6%
None86%
Fourteen Percent of Millennials Enrolled in at Least One Program

4. Income positively correlates with hotel loyalty program enrollment; 56 percent of
those making more than $150,000 a year are enrolled with two or more brands.
High-Income Millennials Tend to Enroll in More Loyalty Programs
$0 - $24,999
$25,000 - $49,999
$50,000 - $74,999
$75,000 - $99,999
$100,000 - $149,999
$150,000+
0% 10% 20% 30% 40% 50% 60% 70%
56%
45%
41%
38%
39%
39%
44%
55%
59%
62%
61%
61%
One brand Two or more brands
N = 861N = 1,295

5. The most common reason our respondents give for joining a hotel loyalty program
is loyalty to a specific hotel brand, cited by 46 percent.
Most Millennials Join Program Because of Brand Loyalty
Brand loyalty
Easy-to-earn rewards
Simple sign-up
Variety of reward options
0% 10% 20% 30% 40% 50%
19%
37%
41%
46%
Percent of sample
N = 388

6. More than half say they frequently redeem loyalty points on a free or discounted
stay, followed by room upgrades (19 percent) and airline tickets (12 percent).
Free or discounted
stay
51%
Room upgrades19%
Airline tickets12%
Food or room service8%
Downloadable media4%
Spa or other
services
4%
Other2%
Most Want to Spend Loyalty Points on a Free or Discounted Stay

7. Email remains the most effective marketing tool, and 49 percent of respondents
say they prefer to learn about their loyalty points via a simple notification email.
Email49%
At check-in18%
Online dashboard18%
App notification15%
Most Prefer to Receive Point and Reward Notifications by Email

8. When we asked respondents how likely they would be to post about a brand on
social media for points, 27 percent each chose “very likely” and “not at all likely.”
Very likely27%
Moderately likely26%
Minimally likely20%
Not at all likely27%
Millennials Split on Likelihood to Post on Social Media for Points

9. Most respondents (53 percent, combined) say they would find a mobile app for a
hotel’s loyalty program “very” or “moderately valuable.”
Most Millennials Find Mobile Loyalty Apps Valuable
Very valuable29%
Moderately valuable29%
Minimally valuable24%
Not at all valuable18%

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Read about our findings in more detail.Read Report