Hotels Ramp Up Loyalty Schemes To Beat AI Agents And Online Booking Platforms

Major hotel chains are intensifying their focus on loyalty programs in 2025 as they face growing competition from online travel agencies (OTAs) like Booking.com and Expedia, as well as emerging AI-powered booking agents from companies such as Google and OpenAI. According to a Financial Times report, hotels are losing significant revenue due to high commission fees—typically ranging from 15% to 25%—charged by OTAs for each booking. Beyond the financial hit, the bigger concern is the loss of direct access to customer data, which is essential for delivering personalized experiences and encouraging repeat business.

The rise of agentic AI tools, which allow users to book hotels through simple text or voice commands, has further complicated the landscape. These AI agents handle the entire process effortlessly, reducing the need for customers to visit hotel websites or apps directly. This shift threatens the traditional relationship hotels have with their guests, as AI platforms act as intermediaries, limiting hotels' ability to build long-term loyalty and collect first-party data. In response, hotel groups are doubling down on their loyalty programs to incentivize direct bookings and retain control over the customer journey.

Marriott International reported strong growth in its Bonvoy loyalty program, reaching nearly 260 million members by the end of September 2025, marking an impressive 18% year-on-year increase. Hilton has made it easier for customers to achieve elite status and expanded partnerships to provide more ways for members to redeem and earn points. Similarly, Hyatt and Wyndham Hotels & Resorts have introduced enhanced rewards, faster status upgrades, and exclusive perks to make direct bookings more appealing than using third-party platforms or AI agents.

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The strategy reflects a broader industry shift toward strengthening direct relationships with customers. By offering better value through loyalty benefits—such as room upgrades, late check-outs, bonus points, and personalized offers—hotels aim to counter the convenience of AI agents and the discounts offered by OTAs. Industry experts note that while AI tools provide ease and speed, loyalty programs deliver tangible, ongoing rewards that build emotional connection and long-term loyalty.

As generative AI continues to transform travel planning from traditional search into conversational, agent-led experiences, hotels are racing to adapt. The emphasis on loyalty programs represents a proactive effort to reclaim market share, protect profit margins, and maintain direct customer engagement in an increasingly competitive and tech-driven booking ecosystem. The coming year will likely see even more aggressive incentives as the battle for direct bookings intensifies.

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