Hotel loyalty programs face scrutiny over reimbursement transparency

Hotel owners are raising concerns regarding the lack of transparency in reimbursement rates for loyalty program redemptions. In soft brand agreements, such as those for Hilton’s Curio Collection and Marriott’s Autograph Collection, the specific amount a hotel chain pays an owner for a room booked via guest loyalty points is often not defined within the primary contract.

For Hilton, disclosures indicate that hotels must set aside a percentage of inventory for redemptions, with reimbursement determined by the program rather than a fixed formula. Marriott’s disclosures describe only a “limited reimbursement” and reserve the right for the chain to change redemption amounts and calculation factors at any time. This leaves owners of long-term contracts vulnerable to fluctuations in how they are compensated for rooms occupied by loyalty members.