Online booking is increasing. Each year since 2002 more guests are making their reservations through travel portals such as (e.g., Expedia, Travelocity,, etc.) or directly on hotel websites.

But how is the rise of online booking impacting guest loyalty? Is the ease of comparing multiple brands and the convenience of booking online creating more demanding guests? Or has the Internet created more fickle guests who are becoming more impulsive in their decisions?

The good news is that hotel customer loyalty is on the rise. In fact, since 2002 hotel customer loyalty has steadily increased each year. That’s nearly six years in a row that more guests are indicating their allegiance to a hotel or brand. And guest loyalty is important. Satisfying and retaining customers help hospitality companies recoup their customer acquisition costs, grow their revenues, reduce operating costs, generate referrals, and enjoy price premiums.

So despite the rise in online booking, hotel loyalty is on the upswing -- but not for all hotels.

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