The Future of Hotel Loyalty Programs: Subscription-Based Models and New Consumer Trends
The hospitality industry is experiencing a major shift, and one of the most intriguing developments in recent years is the rise of subscription-based hotel loyalty programs. As a designer always keeping an eye on industry trends, I find it exciting to see how these evolving models transform the guest experience. As consumer behaviors evolve, particularly with the post-pandemic surge in leisure travel, hotels are pivoting away from traditional reward points and exploring new ways to offer value to their guests.
In this blog, we’ll discuss how subscription-based models are reshaping the landscape of hotel loyalty programs and how they can become the future of guest retention. It's clear that this is just the beginning of a shift that can benefit both hotels and guests alike. We’ll explore what these new programs offer, why they’re becoming more popular, and how hotels can capitalize on this emerging trend.
Why Are Hotels Shifting to Subscription-Based Loyalty Programs?
Historically, hotel loyalty programs have revolved around earning points with each stay, which could be redeemed for free nights, room upgrades, and other perks. But as travel habits shift, especially in the wake of the pandemic and the constant rise of social media, guests’ expectations have changed. I think we all feel it. The days of just earning points and waiting for a free night are behind us. Today’s travelers want more. They want experiences that speak to their lifestyle and needs. The emphasis is no longer just on rewards for staying multiple nights but rather on enhancing the overall guest experience through added convenience and exclusive benefits.
Subscription-based models are now being viewed as a way to tap into a consistent revenue stream while providing flexibility to customers. Instead of the traditional rewards system, customers can pay an upfront fee for a subscription that offers perks like discounted rates, room upgrades, or even a week-long stay at one of the hotel’s properties. Brands like CitizenM and Ennismore have already started offering subscription services that include perks such as late checkout, access to luxury amenities, and seamless booking across multiple destinations.
As someone deeply invested in creating meaningful design experiences, I can’t help but get excited about how hotels now design these experiences to feel more like an extension of a guest’s lifestyle. These subscriptions cater to today’s consumers — primarily millennials and Gen Z — who are more inclined to invest in experiences. In my view, this is a perfect example of how design can shape physical spaces and how people engage with them.This shift in consumer mindset is helping drive the popularity of hotel subscription programs, which cater to those who seek flexibility and consistent perks across their travels.
Key Benefits of Hotel Subscription Programs
1. Predictable Revenue for Hotels
Subscription models create a more predictable revenue stream for hotels, as customers pay upfront. This offers more stability compared to the fluctuating business that comes with seasonal travel. With subscription packages, hotels can rely on a base of committed, loyal customers. And let’s be honest, it’s always a good thing for businesses to have that kind of financial stability, especially in such a dynamic market.
2. Increased Customer Retention
Subscription-based models help foster loyalty by offering exclusive perks tailored to the customer’s needs. By providing flexibility in terms of the length of stay, exclusive amenities, room upgrades, early check-in, and late checkout options, hotels increase their chances of securing customers who are genuinely loyal to their brand — guests who choose to stay exclusively at their properties time and time again. It’s about creating those “aha” moments for guests, where they feel truly valued and understood by the brand.
3. Attracting New Customer Segments
These programs cater to a broader range of consumers, from digital nomads and business travelers who need flexible workspaces to leisure travelers seeking a high-end experience. For example, some hotels offer day passes during off-peak times, providing access to amenities like gyms, pools, or even a quiet spot, all while boosting revenue. In addition, hotels are already renting out their meeting spaces hourly or daily, but I believe there is potential to create a subscription-based model for these spaces as well. This would allow guests or local businesses to have regular access to meeting rooms, making it a convenient and flexible option for those in need of a professional space.
How Hotels Are Marketing Subscription-Based Programs
As the demand for more personalized experiences increases, hotels are marketing these subscription-based models with an emphasis on exclusivity and convenience. Many hotel brands are leveraging the power of social media and digital marketing to make their subscriptions more appealing to a wider audience. I’ve noticed a lot of buzz on platforms like Instagram and TikTok, where hotels showcase how their subscriptions enhance travelers' lifestyles. It’s like seeing a trend that’s gaining momentum right before your eyes.
In addition to social media, some hotels use influencer partnerships to promote their subscription models. By collaborating with travel bloggers or lifestyle influencers, they can reach a broader audience and build excitement around their subscriptions' exclusive perks.
Another strategy gaining traction is the use of email campaigns and digital newsletters. By sending personalized offers to loyal customers, hotels can encourage sign-ups for subscription programs while highlighting new benefits, updates, or unique experiences available to subscribers.
Finally, providing limited-time offers or exclusive discounts for the first few months of a subscription can create a sense of urgency, prompting potential customers to act quickly. Offering incentives such as a free stay or complimentary upgrade with subscription sign-up is another effective marketing tactic that entices customers to commit to a long-term relationship with the hotel.
These methods combine modern digital marketing techniques with traditional hospitality values, ensuring that hotel subscriptions meet customer expectations and engage them in a seamless and exciting way.
The Growing Importance of Hotel Subscriptions for the Future
With post-pandemic travel on the rise, more people are embracing the idea of traveling for leisure and want experiences that align with their lifestyle. Hotels need to cater to this growing demand by considering the following:
Variety of Tiers and Upgrades
Subscription models should offer different pricing tiers, allowing for flexibility based on the guest’s preferences. Some guests might be looking for occasional perks, while others might want an all-access experience. By offering various subscription levels, hotels can ensure there is an option for every traveler.
Exclusive Partnerships and Perks
Partnering with brands such as local gyms or coffee shops adds even more value to a hotel’s subscription program. Consumers are looking for integrated services that enhance their travel experience, whether it’s fitness, wellness, or dining.
Appealing to Digital Nomads and Millennial Travelers
As more remote workers and digital nomads enter the travel market, hotels should consider the need for spaces that cater to work, relaxation, and entertainment. Subscriptions that include coworking space access and luxury amenities will attract these segments. For these travelers, having the perfect balance of productivity and relaxation is crucial, and hotel subscriptions can perfectly meet those needs.
How Multifamily Can Capitalize on Subscription-Based Models
This model is something that multifamily complexes could also learn from. Hotels, like those in Phoenix, offer day passes to their amenities during off-peak seasons, ensuring their spaces remain active and profitable year-round. Combining membership perks with access to physical amenities, hotels, and multifamily properties can provide more value to residents without building additional infrastructure. This approach allows for a more fluid, experience-driven model that can work for leisure and professional needs.
For national multifamily developers, this concept could be taken even further. They could offer their residents a subscription model that allows access to amenity spaces at sister properties in other major cities during business or leisure travel. For example, a resident traveling for work could stop by and use the gym at their local apartment brand’s fitness space in another city, making it feel like their "home" no matter where they are.
Imagine taking this a step further with co-branded partnerships. Multifamily complexes could partner with well-known coworking spaces or local coffee shops to offer added benefits to their residents, such as discounted memberships or exclusive access, adding even more value. With the use of digital access controls, it would be easy for branded apartments to allow day or even week-long access to specific property amenities as a perk of being a resident of that brand. This is an exciting opportunity to not only attract residents but also keep them engaged by offering ongoing access to services that enhance their lifestyle wherever they go.
As the demand for seamless, flexible living continues to grow, multifamily properties that embrace subscription-based models will likely be at the forefront of a new era in real estate, offering convenience, enhanced experiences, and an interconnected lifestyle for their residents.
IN Conclusion
Subscription-based loyalty programs are undeniably the future of hospitality design and hotel marketing. They offer flexibility, enhanced guest experiences, and increased revenue, positioning hotels to better meet the needs of today’s consumers. By embracing these innovative programs, hotels can capitalize on the growing demand for experiential travel and position themselves as leaders in the evolving hospitality industry. As someone deeply passionate about the intersection of design, function, and guest experience, I’m genuinely excited to see where this trend takes us.
But here’s the thing — while the future of loyalty programs is bright, it’s not fully defined yet. Every hospitality chain is experimenting with these models in slightly different ways, which makes this so intriguing. We’re in the middle of a shift, and right now, hotels and other hospitality properties have the chance to be at the forefront of this change. The beauty of it all is that the future of hospitality is still being shaped, and now is the perfect time for hotels to embrace these evolving ideas and set themselves apart by creating something truly innovative.
The hotel industry must adapt as the market continues to shift towards more flexible, experience-driven travel. Subscriptions offer an exciting opportunity to redefine what luxury hospitality looks like — making it more accessible, personalized, and aligned with the modern traveler’s expectations. The canvas is wide open for hotels to redefine loyalty, and those who get it right will lead the way.