When it comes tO Hotels, travelers are considered loyal when they choose to stay at one hotel over other hotels—or with a certain hotel brand over other brands.

Not all loyal guests are of equal value, however. A guest who stays frequently but spends little may be less valuable than a guest who stays infrequently but spends a lot—and vice versa. And a frequent guest who books directly is typically more valuable than a frequent guest who books through an OTA. Part of determining how far to go to earn guest loyalty involves calculating their lifetime value to the hotel or brand.

Generally speaking, frequent guests are valuable tO Hotels and brands because they generate room demand, helping hotels to increase occupancy, rates and RevPAR. Hotels know frequent guests better than one-timers and can cater to their needs and preferences, which strengthens relationships over time. Furthermore, some loyal guests are brand advocates who provide valuable feedback, write positive reviews and refer other travelers.