Loyalty Program Fees News Today

Over the years, the fees hotel owners pay to franchise companies have typically grown at a pace greater than the rise in hotel rooms revenue. Most franchise-related fees are charged as a percent of rooms revenue, and therefore, by assessing the relative changes in rooms revenue and franchise fees we can make some assumptions.

Article - Guest Loyalty Programs Provide, But They Cost - By Robert Mandelbaum and Christine Bang - In 2022, the fees to cover the costs of Guest Loyalty Programs increased by 53.8% 9.5 percentage points greater than the growth in rooms revenue during the year. In fact, Guest Loyalty Program fees have consistently increased at a greater pace than rooms revenue since 2007.