The rules of guest loyalty are changing, and hoteliers are changing pace. According to a new survey commissioned by Mews, the industry-leading hospitality cloud, nearly 7 in 10 travelers (68%) now say they’ll stay loyal to hotels that deliver standout, personalized experiences – leaving traditional, points-based rewards behind.
This shift in loyalty is unmistakable: among Gen Z, personalization reigns over points (83%) and 71% of high-income earners also prefer experiences tailored to them vs. loyalty points.
“The era of transactional loyalty is over,” says Richard Valtr, Founder of Mews. “Today’s travelers want genuine recognition – the kind that comes from truly understanding who your customer is, why they have come and what they aim to achieve during their trips. More personalized experiences, less loyalty tiers. The hotels that foster continuous and meaningful relationships with their guests, where they understand their preferences and deliver experiences that are memorable and meaningful, are the ones that will see guests return time and time again.”
The poll of 2,000 American travelers found that only 24% of Americans say hotel rewards are the most valuable (behind grocery store rewards, credit card points, gas rewards and airline miles). Additionally, 82% of current hotel loyalty members cite frustrations with traditional programs, including points expiring too quickly (28%), blackout dates (24%), and difficulty earning meaningful rewards (23%). These challenges are driving travelers, especially younger and affluent segments, to seek alternatives.
Other key findings from the survey:
Gen Z Leads the Personalization Revolution
- 83% of Gen Z travelers would remain loyal for superior personalized experiences
- 89% say personalized amenities would increase their likelihood to return
Affluent Travelers Demand More Than Points
- 71% of travelers earning $150,000-$200,000 prefer personalized experiences
- 83% in this income bracket say personalized amenities boost loyalty
- 80% of those earning over $200,000 are current loyalty members but want more
Technology Enables Personalization at Scale
- 93% of travelers willing to share personal data to improve hotel experiences
- 70% prefer app or kiosk check-in over traditional front desk
- Preference for self-service peaks at 82% among Gen Z
Not surprisingly, customer service is the ultimate loyalty builder: while 88% of travelers will return if hotels consistently meet expectations, poor service (62%), facility issues (51%), and room problems (49%) remain the fastest ways to lose loyal guests.
The shift is clear: hospitality needs to move from transactions to true connections. Points systems and loyalty tiers are being replaced by real-time recognition, seamless digital experiences, and tailored offerings that make every guest feel like a VIP.
“Having a captive audience for at least eight hours of a guest stay while they sleep is a great privilege, however the real potential for hotel brands lies in creating experiences that extend beyond just an overnight visit,” added Valtr. “The brands that are succeeding are evolving to become a part of their guests’ 24-hour experience and evolve this into becoming relevant in their daily lives, delivering truly personalized experiences all year round. This could mean a guest who spends their holidays at a branded residence, works from that same brand’s workspace when on the move, and uses their gym in their home city. It’s about offering them the experiences they want, no matter where they are. This marks a significant shift in loyalty, away from simply collecting points and toward integrating the brand into the guest’s everyday life.”
Survey methodology by Talker Research
This random survey of 2,000 Americans aged 18+ who have traveled in the last 12 months, domestic or international, was commissioned by Mews Systems, Inc. between Apr. 25 and May 2, 2025. It was conducted by market research company Talker Research, whose team members are members of the Market Research Society and have corporate membership to the American Association for Public Opinion Research (AAPOR) and the European Society for Opinion and Marketing Research (ESOMAR).
