Marriott And Hilton Revamp Loyalty Programs With AI To Boost Direct Bookings And Counter OTA Commissions

Published on December 30, 2025

The hospitality industry is a tough competition where the likes of hotel chains such as Marriott and Hilton are adopting advanced technology to keep their customer loyalty programs safe. As Booking.com and Expedia, the online travel agencies (OTAs), still have a big part of the market share and require high commission fees, pushing direct bookings has become more important than ever. By applying AI, these hotels are able to deliver personalized services, along with loyalty rewards, thus increasing their chances of attracting and retaining customers.

Marriott and Hilton, two of the most influential hotel brands, have been at the forefront of this revolution. Both have integrated artificial intelligence (AI) into their loyalty programs to not only streamline the customer experience but also to safeguard their bottom line from the expensive commissions that OTAs demand. By boosting loyalty among customers through tailored services and exclusive offers, they are aiming to re-establish direct relationships that benefit both parties.

Marriott’s Bonvoy and Hilton Honors: Personalisation Through AI

Marriott has been expanding its Bonvoy program by incorporating unique features aimed at deepening its relationship with guests. AI plays a crucial role here, offering tailored experiences such as priority access to events and personalized travel planning. By leveraging customer data, Marriott can now create a more customized experience, improving satisfaction and increasing the likelihood of repeat bookings directly through the brand’s platform.

Hilton has followed suit with its Honors program, introducing flexibility for point redemption. Members can now use their accumulated points for a wide range of rewards, from room upgrades to flights on partner airlines. Hilton has also enhanced its app, integrating loyalty benefits directly into the booking process, which gives users an incentive to book directly rather than through third-party platforms. Both programs have evolved with the times, adapting to technological trends to offer added value for their loyal customers.

AI-Powered Loyalty: A Necessary Adaptation to Evolving Travel Habits

The integration of AI into the hospitality sector isn’t just about adding value for customers; it’s also about staying competitive in a rapidly changing market. Travel booking habits are increasingly influenced by AI agents, which can now aggregate options and negotiate on behalf of customers, offering an all-in-one booking solution. These AI-powered agents, such as iAI Agent, offer real-time price comparisons and personalized recommendations, potentially bypassing traditional hotel booking channels altogether.

Hotel executives are aware of the risk these digital intermediaries pose. Marriott’s CEO recently pointed out that “sticky” loyalty features, such as human-curated experiences and exclusive events, are crucial in maintaining customer loyalty, even in the face of emerging AI agents. Hilton is also working to ensure that its loyalty perks are seamlessly integrated into its app, making it easy for customers to access benefits even if they use AI agents to book.

Building Stronger Relationships Through Experiential Rewards

As AI begins to infiltrate the booking process, many hotel chains are investing in what can’t be replicated by machines: emotional connections. Hilton’s focus on experiential rewards, such as cooking classes and adventure tours, taps into this need for deeper engagement. By offering members the chance to redeem their points for unique experiences, Hilton is fostering an emotional bond with its customers, something that AI agents struggle to replicate.

Marriott has similarly focused on ensuring its loyalty program offers more than just discounts or perks. The company has expanded its Bonvoy program with curated events and access to exclusive experiences that foster a sense of community and belonging. As AI grows more prevalent in the travel sector, these human-centric offerings help ensure that guests remain loyal to the Marriott brand.

The Benefits for Tourists and the Future of Hotel Loyalty

For tourists, the benefits of these revamped loyalty programs are clear. With AI helping to personalize each interaction, travelers are getting a more tailored experience that enhances their overall stay. Additionally, the exclusive perks offered through Marriott’s Bonvoy and Hilton Honors programs ensure that members receive maximum value, whether through discounted rates, room upgrades, or access to special experiences.

The shift toward direct bookings also empowers customers by offering them more control over their travel decisions. By booking directly through the hotel’s website or app, guests are often presented with better rates, more flexible cancellation policies, and the opportunity to earn loyalty points for future stays. This approach not only benefits the hotel brands but also enhances the guest experience, making it easier for customers to choose the best options available for their needs.

The Road Ahead: Innovation and Strategic Partnerships

As we look ahead, it’s clear that Marriott, Hilton, and other major hotel chains are committed to the ongoing evolution of their loyalty programs. In addition to AI, these hotels are exploring strategic partnerships to broaden the appeal of their rewards. For example, Wyndham has expanded its loyalty offerings by linking with retail and dining brands, allowing members to earn points beyond just hotel stays.

Furthermore, some chains are experimenting with partnerships that integrate loyalty systems across different industries, creating a seamless experience for customers. For instance, co-branded credit cards and partnerships with financial services, like those offered by Wyndham, are encouraging consumers to interact with the brand even when they’re not travelling.

In the future, these innovations will likely lead to a more interconnected travel experience, where loyalty programs aren’t just about rewarding customers for hotel stays, but also integrating them into a larger, ecosystem-driven lifestyle.

A Bold Step Into the Future

The hospitality sector is undergoing a profound transformation, driven in large part by the rise of AI and the increasing dominance of online travel agencies. Marriott, Hilton, and other hotel chains are taking bold steps to ensure they remain at the forefront of this shift. By focusing on customer loyalty, AI-driven personalization, and strategic partnerships, these hotel brands are working hard to build lasting relationships with their customers, relationships that will weather the technological storm and continue to thrive in the coming years.

As the competition grows fiercer, hotel chains that can effectively integrate technology with a human touch will lead the way. For travelers, this means more personalised, convenient and rewarding experiences, which will undoubtedly shape the future of the hospitality industry for years to come.

Image Credit: Marriott Hotels