“Points Fatigue” Hits Hotel Loyalty: Half Feel Undervalued. Can Gen AI Help?

BACKGROUND

Accenture’s latest Consumer Pulse survey of 18,000 consumers in 14 countries, presented in the report, “Me, my brand, and AI: The new world of consumer engagement,” explores how the adoption of AI is reinventing the consumer-brand relationship, influencing not just what people buy, but how they think, feel and engage.

KEY FINDINGS

Half (50%) of loyalty members claim that hotel loyalty programs are no longer delivering the value they once promised. According to Accenture’s Consumer Pulse survey 2025, 43% of loyalty program members are active generative AI (gen AI) users, defined as people using gen AI tools at least weekly for personal and/or professional reasons, compared to 16% of non-members.

The survey reveals a paradox in the hospitality industry: while loyalty programs remain a valuable tool to increase customer retention, drive higher lifetime value, and deliver stronger brand advocacy, with hotels leading the pack versus other consumer industries, there is a growing dissatisfaction among travelers regarding the value of these programs.

• Loyalty schemes still matter but perceived value waning for some: Nearly 6 in 10 (57%)
  participate in hotel loyalty schemes but, 50% of loyalty members say hotel loyalty programs no longer offer the value they once did.
• Gen AI potential for transforming loyalty programs by enabling hyper-personalization and dynamic engagement: 43% of hotel loyalty members are already active gen AI users, compared to just 16% of non-members and are 1.9x more likely to describe gen AI as a "good friend" and 1.6x as likely to use a personal AI assistant to autonomously solve their travel needs from initial inspiration to a seamless return home.
• Younger generations (Gen Z and Millennials) are 19% more likely than older generations (Gen X and Boomers) to participate in loyalty programs but are also quicker to shift allegiance when disappointed.
• The majority (89%) of hotel loyalty members want to choose their own rewards.
• Luxury travelers are 25% more likely to join hotel loyalty programs, but their expectations are higher, for example 9 in 10 of them would like to shape their own experiences.
• More than nine in 10 (92%) of loyal hotel customers have recommended their favorite hotel brand or sub-brand to someone else.

Hotel loyalty programs still have strong pull amongst guests, especially younger generations, however they risk losing some of their appeal by not evolving beyond transactional points for perks. While point-based loyalty programs still have their place, they need to compete with experience-led rewards that capitalize on guests’ desires for immediate satisfaction and personalization. Emily Weiss, senior managing director and global travel lead, Accenture

A growing number of brands are using AI to improve customer experience with loyalty programs. For instance, these brands are using the technology to segment customer data and use this insight to tailor offers to the individual needs of each guest to further enhance satisfaction, boost revenues and garner loyalty. By leveraging gen AI, hotels can craft experience-led rewards that feel more personal and meaningful, moving beyond generic, points-based loyalty to create moments that resonate. This can help hotels create memorable experiences, streamline operations, and strengthen guest relationships, ultimately helping to boost loyalty and repeat business, Weiss adds.