It is not hard to see the potential benefits of loyalty programs for hotels. For instance, by helping to build loyalty between the company and its most profitable customers, a program can increase repeat business, and hence profits, while also reducing the need to attract new customers.

Loyal customers are also more likely to perceive the company's products and services as providing good value and so they are less sensitive to the company's price premium. They are further likely to act as brand ambassadors by recommending the company through word of mouth, either through personal recommendations or via online review sites.