Marriott And Hilton Revamp Loyalty With AI To Boost Direct Bookings And Counter OTA Commissions
Published: December 30, 2025
OTAs still command attention and take a meaningful cut. Marriott and Hilton are pushing back where it counts: direct bookings and repeat stays. Their play is simple-use AI to personalize the experience, fold benefits into the app, and make member perks too good to ignore. The goal is stronger margins, better data, and a tighter relationship with the guest.
Why this matters for hospitality and events teams
- Higher-margin revenue: reduce OTA fees and lift contribution per stay.
- First-party data: better profiles fuel smarter offers and upsells.
- Events and groups: loyalty-driven incentives move RFPs and repeat business.
- Channel control: direct booking benefits beat one-time OTA discounts.
Marriott Bonvoy: Personalization and access
Marriott is weaving AI into Bonvoy to shape offers, preferences, and trip planning. Members see event access, upgrades, and experiences tied directly to their profile and booking path. The brand continues to spotlight exclusive moments that money often can't buy, strengthening the "book direct" habit.
Explore examples of experience-led rewards at Marriott Bonvoy Moments.
Hilton Honors: Flexible points and in-app benefits
Hilton is expanding how points can be used-room upgrades, on-property credits, and even flights with partners. The Honors app surfaces benefits during the booking flow so members see value before they ever compare with an OTA. The message is clear: the best experience lives inside the ecosystem, not outside it.
AI booking agents raise the bar
AI-powered travel agents can compare prices, assemble itineraries, and recommend stays on the fly. That pressures hotels to stand out with member-only perks, recognition, and experiences that software can't replicate. Leadership at major brands is doubling down on "sticky" benefits-human-led, high-emotion moments that keep guests coming back.
Experiential rewards create emotional loyalty
Events, classes, tours, and behind-the-scenes access build stories guests remember-and retell. Hilton is leaning into experiences as redemption options; Marriott is doing the same with curated gatherings and access. This isn't just a perk-it's a bond that reduces price sensitivity and improves repeat rate.
Playbook: Apply this at your property or brand
- Quantify the OTA tax: Model contribution margin by channel. Set a direct mix target per segment (transient, corporate, groups).
- Make direct the easy win: Member rate, flexible cancellation, late checkout, digital key, and guaranteed earn. Keep price parity but add clear, on-property value.
- Personalize with AI: Trigger offers by trip purpose, length of stay, and past behavior. Rotate benefits (upgrade credits, F&B vouchers, lounge passes) based on predicted response-not guesswork.
- Bring events into loyalty: Priority seating, meet-the-chef moments, backstage access, or limited-capacity classes. Promote these in pre-arrival and in-app.
- Make points feel useful every stay: Enable micro-redemptions (coffee, parking, Wi-Fi tier, late checkout) alongside big-ticket upgrades.
- App-first delivery: Show benefits in the booking path, allow room selection, chat, and service recovery credits. Push app adoption in confirmation and pre-arrival messages.
- Data and consent: Unify PMS, CRS, and CRM into a single profile. Be explicit about value exchange so guests opt in without friction.
- Measure what matters: NetRevPAR, contribution margin, direct conversion, app adoption, repeat rate, cash+points mix, experience redemption rate, and on-property spend per member night.
- Prepare for AI agents: Publish benefits and policies in structured formats so they're discoverable. Ensure benefit recognition at check-in regardless of booking path-and offer a clear "next time, book direct" incentive.
- Expand earn/burn: Add airline, dining, and retail partners. Use co-branded cards to keep members engaged between stays.
Ideas for events and group business
- Planner incentives: Bonus points on signed contracts, plus experience vouchers for VIPs.
- Attendee engagement: Member-only check-in lanes, app-based perks, and micro-redemptions during the event.
- Post-event retention: Target attendees with member rates and local experiences to convert them into future direct bookers.
What's next
Expect more cross-industry partnerships, broader point utility, and smarter personalization built on cleaner data. The winners will pair technology with hospitality that feels unmistakably human. Guests get clearer value, better rates, and meaningful experiences when they book direct-and that's a habit worth reinforcing.
Upskill your team: For hands-on training in practical AI for hospitality roles, see AI courses by job.
Image Credit: Marriott Hotels
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