The Revination
August 2025
Explore Revinate’s monthly digest of hospitality’s latest insights and tips. As hoteliers, we know you’re flooded with information. The Revination simplifies that noise, making it easier for you to focus on what’s happening in hospitality, why it matters, and what action you can take today. We also share our perspective on industry trends and highlighting the strategies driving game-changing results for hotels like yours. Subscribe on LinkedIn.
Turn market uncertainty into loyalty-driven growth
It’s an uncertain time for the hospitality industry. Whether it’s an unsteady global economy, shifting online search practices, decreased government travel, and more, hotels are facing an unpredictable future. Fortunately, while market conditions may be unpredictable, your path to success doesn’t have to be.
You can stabilize the turbulence by investing more in the heart of your hotel — your guests. And by prioritizing personalization over points, you’ll begin to drive the kind of engagement that builds the relationships known to drive repeat direct bookings and long-term revenue.
This month, we’re sharing proven strategies and real-life success stories to help you transform your loyalty program into a top growth engine for your hotels.
Numbers that matter
Are hoteliers spending enough on marketing?
OTAs aren’t winning bookings by accident — they’re winning because they’re outspending hotels. Across industries, companies dedicate around 7.7% of revenue to marketing. Hotels? A maximum of 2.5%.That’s about $11B worldwide, compared to the $17.8B OTAs poured in last year. No wonder travelers see them first.
Why it matters for hoteliers
This gap in spend translates directly to a gap in visibility. With OTAs putting so much more into marketing, they’re shaping the booking journey before a guest even thinks about visiting your website. That means fewer direct bookings, more commission fees, and less control over the guest relationship.
So, what can hotels do? Experts suggest aiming to spend 5–10% of revenue on marketing. And new openings or rebrands may need 15–25% to break through. It’s not just about spending more — it’s about spending smarter.
Here’s where to focus:
- Match spend to your seasons. Push harder when occupancy is harder to fill.
- Fuel your launches. New properties need extra visibility to stand out.
- Double down on ROI channels. Invest in what drives direct bookings.
- Measure impact. Track engagement and conversions, not vanity metrics.
What’s Revinate’s take?
We believe hotels win not by outspending OTAs, but by outsmarting them. That means using guest data to personalize communication, highlight what makes you unique, and build loyalty that OTAs can’t replicate.
Loyal guests don’t need to be “won back” every time — they come back on their own. That’s the path to sustainable direct bookings.
Trends that matter
It’s time to personalize your loyalty program
At the Hotel Data Conference this month, one of the largest industry conferences of the year, a major theme was U.S. hotel performance. Currently, hoteliers are facing a 0.1% year-over-year decline in U.S. RevPAR for 2025 and a noticeable decline in international travel. While luxury and upper-scale hoteliers are projected to see some market success, guests are tightening their budgets amid interest rate hikes. And with fewer Canadian travelers coming to the U.S., American hoteliers must shift some of their marketing spend to target the domestic and drive markets to maximize as much demand as possible. Meanwhile, hoteliers in APAC and EMEA have a clear opportunity to capture more travelers.
Why it matters for hoteliers
While hoteliers in the U.S. may be fighting market fluctuations, sluggish demand, and economic pressure, it’s not a mutually exclusive trend. Several European countries are in a bit of a tourism slump as well, ultimately searching for ways to make up lost revenue. The point is, no country is immune to industry challenges, and your core challenge will always remain the same: Attract and retain loyal guests, regardless of the market’s status.
If one of your strategies for attracting and retaining loyal guests is with your hotel’s loyalty program, then make sure it’s one built with the guest in mind. Hoteliers around the world are realizing that the modern loyalty landscape looks a lot different. It’s points over personalization now, and guests can smell value a mile away, — and they’ll look elsewhere if they know you don’t have it.
What’s Revinate’s take?
Your loyalty program can help you win when demand slows and the market turns rocky. It’s a source of revenue generation and one of your most telling indicators of brand affinity.
But not all loyalty programs are created equal or made for longevity. Because, as we said, the industry and guests have already moved past points. A personalized loyalty program is built to last. It’s what you can do with that personalization that not only makes your guests feel valued, but puts money back in your business, especially when you tap into an ancillary revenue strategy.
Know your guest loves the coconut facial at your spa and a dip in your pool? That data is your catalyst for a timely email campaign that reignites a guest’s love for your brand and drives on-property spend for their next stay. Offer 15% off their next facial when they book direct. When you let that same guest know about the personalized rewards in your loyalty program and that you’ve been keeping track of their spa favorites, those are the special touches that take you from being on a guest’s radar to being their hotel of choice.
Perspectives that matter
The secret’s out: Traditional point-based loyalty programs don’t cut it anymore. Today, guests want more personalization, flexibility, and value. Get our four proven strategies designed to transform your loyalty program into a real revenue driver.
What actually happens when the traditional structure of a loyalty program is flipped on its head? Learn how Ennismore’s bold “Dis-loyalty” strategy reshaped guest engagement and drove loyalty with their cutting-edge membership program.
Access Revinate’s Direct Booking Mastery certification, a six-part educational program that enables hoteliers like you to drive direct revenue through proven, practical strategies.