In late October, Hyatt launched a promotion for members of its loyalty rewards program. Until March next year, members who purchase a gift cards from Mr and Mrs Smith – an online travel booking platform for luxury boutique hotels which Hyatt acquired earlier this year – will earn five World of Hyatt base points for every dollar spent with it, plus a tier-qualifying night credit for every $300 spent on the card. World of Hyatt points can be used to redeem free stays and suite upgrades at Hyatt properties worldwide.
But how popular are hotel loyalty programs in Australia? What perks and privileges do travellers find most attractive – and how does this vary demographically? Crucially, to what extent does loyalty membership with a hospitality group guide how Australians choose their travel accommodations?
In this article, we dive deep into YouGov’s latest study on hotel rewards schemes – and uncover key insights about the consumer popularity, interest and influence of hotel loyalty programs in Australia.
How popular are hotel loyalty programs with travellers from Australia?
Latest YouGov Surveys research shows that almost a third (31%) of Australian consumers are a member of at least one hotel loyalty program.
About one in eight (12%) are members of Accor Live Limitless / Accor Plus [Sofitel, MGallery, Raffles, Banyan Tree, Fairmont, Swissotel, Orient Express, Pullman, Angsana, Mondrian, Mövenpick Hotels & Resorts, Novotel, Mecure, Mantra, Tribe, ibis, BreakFree] – the most popular hotel loyalty club.
Following at some distance are Hilton Honors (8%), IHG One Rewards (6%) [Regent, Six Senses, InterContinental, Kimpton, Hotel Indigo, Crowne Plaza, voco, Holiday Inn, Garner, avid, Vignette Collection] and Marriot Bonvoy (6%) [EDITION, The Ritz-Carlton, St. Regis, W Hotels, JW Marriott, Renaissance, Westin, The Luxury Collection, Sheraton, Delta, Fairfield Inn & Suites, City Express, Aloft, Moxy], the next most popular hotel loyalty programs where at least one in fifteen Aussies are members.
Which hotel loyalty program perks do Australian travellers find most appealing?
When asked about the top two benefits they most appreciate about being a hotel loyalty club member, close to a third (31%) highlight being able to enjoy free breakfast and room upgrades as top perks.
Around a quarter (25%) pointed to the ability to redeem loyalty points for discounted / complimentary stays as well as early check-in and late check-out, the next most popular perk ahead of discounted / priority access to hotel facilities (e.g. spas/wellness studios, boutique restaurants, gyms, swimming pools).
While free breakfast and room upgrades are the most popular perks across genders, women are significantly more likely than men to prize free breakfast (38% vs 26%) and early check-in and late check-out (31% vs 20%), while men are significantly more likely than women to prize earning bonus points (21% vs 12%) and ability to transfer points to airline partners (18% vs 8%).
While older travellers (Gen X and Baby Boomers) most prize free breakfast and room upgrades as top perks, younger travellers (Gen Z and Millennials) are more interested with discounted / priority access to hotel facilities. Compared to other birth cohorts, Gen Z are much more interested in getting discounted / complimentary stays and executive lounge access.
To what extent does loyalty program membership guide the hotel booking choices of travellers from Australia?
When hotel loyalty program members were asked how they typically go about booking travel accommodations, close to a third (31%) say they start off by searching among hotels where they are a loyalty member of, before narrowing down by price and proximity to specific places of interest.
On the other hand, over a third (36%) first look for hotels close to specific places of interest they are keen on visiting, before considering price and loyalty program membership – while 29% first look for hotels within their travel budget, before considering loyalty program membership and proximity to specific places of interest.
Additionally, men are significantly more likely than women to prioritise hotels where they are a loyalty member at the outset of their search for overseas travel accomodations (37% vs 22%).
Across generations, younger travellers – Gen Z and Millennials – are significantly more likely to start off their hotel search based on loyalty membership (both 37%).
In contrast, Gen X and Baby Boomers are much more likely to look at hotels that are within their travel budget first, before considering loyalty program membership and proximity to specific places of interest.
This article is part of a deep dive series exploring key insights on the popularity, interest and influence of travel loyalty programs in the airline and hospitality sectors. Read our companion articles in the series below:
➤ Hotel loyalty programs: what perks most attract Singaporeans & do they guide accommodation choices?
➤ Airline loyalty programs: what perks most attract Australians & do they influence flight bookings?
➤ Airline loyalty programs: what perks most attract Singaporeans & do they influence flight bookings?
Methodology: YouGov Surveys: Serviced provides quick survey results from nationally representative or targeted audiences in multiple markets. This study was conducted online in November 2023, with a national sample of 1,052 Australian residents, using a questionnaire designed by YouGov. Data figures have been weighted by age, gender and region to be representative of all adults residing in Australia (18 years or older) and reflect the latest Australian Bureau of Statistics (ABS) population estimates. Learn more about YouGov Surveys: Serviced.
