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Inside Wyndham’s loyalty strategy

For years, the loyalty space has trended toward complexity—tier explosion, dynamic pricing, unclear redemption values and increasingly narrow definitions of “loyalty” have become standard across much of the industry. Wyndham Hotels & Resorts has bet on a different outcome.

With more than 122 million Wyndham Rewards members worldwide, instead of finding complexity, Wyndham has anchored its program in simplicity and accessibility while also steadily expanding what loyalty means. The result is a program that aims to resonate with rapidly evolving traveler demand and one that delivers tangible benefits to franchisees navigating rising costs, distribution pressure and shifting demand.

Loyalty as a Lifestyle

At the heart of Wyndham’s current loyalty evolution is a recognition that consumer expectations have fundamentally changed. Loyalty is no longer seen as a stand-alone rewards mechanism—it’s now expected to fit into daily life, as Michael Shiwdin, Wyndham’s group vice president of guest engagement, loyalty, and strategic partnerships, puts it.

“Loyalty is driven by consumer expectations,” Shiwdin says. “Consumers want loyalty to also be a convenience product. It’s not just about the hotel stay anymore—it’s about how loyalty fits into their lifestyle.”

That insight fueled a major strategic pivot. While Wyndham Rewards has always been rooted in earning points and redeeming free nights, 2025 marked a turning point as the program broadened into a more holistic value proposition. Members can now earn and redeem points across a growing ecosystem that includes airline partnerships, local and national experiences, travel bundles and attractions—from concerts at Madison Square Garden to destination activities through third-party experiential partners.

Scott Strickland, chief commercial officer of Wyndham Hotels & Resorts, sees this as a necessary evolution but one that required restraint. “Loyalty today is multidimensional,” he said. “If you’re only rewarding transactions, you’re already behind. The challenge is recognizing broader engagement without over-engineering the program. A lot of programs lose people because they get too complicated. We’ve done the opposite.”

That philosophy materialized most recently with Wyndham Rewards Insider, a program layer designed to recognize how members interact with the brand beyond nights stayed—credit card usage, app engagement and partner interactions—while preserving the ease of use that has long differentiated Wyndham.

Standing Still 

As many hotel and airline programs moved toward dynamic pricing and point devaluations, Wyndham deliberately stayed its course. Fixed-award pricing remains a cornerstone of Wyndham Rewards—and, according to Shiwdin, that decision solves a real problem for both guests and owners.

“Fixed redemption tiers allow families to truly plan,” Shiwdin explained. “With dynamic pricing, you can’t tell if that aspirational stay is going to cost you 30,000 points or 300,000 points. We want members to know what they’re working toward.”

In many cases, members achieve redemption values several multiples higher than competing programs, particularly on high-demand dates and at increasingly upscale properties within the portfolio.

From a franchisee perspective, that value perception creates powerful demand. “We have hotels seeing as high as 70 percent loyalty occupancy,” Shiwdin noted. “That’s driven by the clarity and value of the program. It creates a demand funnel our competitors can’t easily replicate.”

Wyndham’s resistance to industry momentum has become a competitive advantage, especially in the economy and midscale segments where guests are highly price-sensitive and brand switching is common.

Wyndham’s portfolio, long dominated by franchised economy and midscale brands, makes loyalty performance impossible to hide behind aspirational branding alone. The program has to influence behavior.

“In this segment, loyalty has to earn its keep,” Strickland said. “If the value isn’t clear and immediate, it won’t move behavior.”

Members now account for more than half of its U.S. system check-ins, a signal of how strongly loyalty drives booking decisions. Those members don’t just stay more often—they stay longer and book smarter.

“When guests are truly engaged with Wyndham Rewards, they book direct,” Strickland said. “That’s where loyalty really proves its worth.”

Every direct booking reduces reliance on higher-cost OTA channels, improving margin at the property level. In softer RevPAR environments, that shift becomes even more critical. “Revenue quality matters more when top-line pressure exists,” Strickland adds. “Loyalty brings in guests who are more predictable, more repeat-oriented, and more profitable over time.”

Designing Loyalty

One of the myths in hospitality is that loyalty generosity must come at the expense of owner economics. Wyndham has spent time dismantling that thought through discipline and design. “There’s a misconception that you have to choose between being generous to members and delivering for franchisees,” Strickland said. “We’ve proven you don’t.”

Every benefit within Wyndham Rewards is evaluated against a test: Does it drive incremental behavior—more stays, longer stays or lower-cost bookings? If not, it doesn’t belong.

That same discipline extends to Wyndham’s reimbursement structure for redemptions. Hotels can be reimbursed up to 100 percent of average daily rate during high-occupancy periods, ensuring loyalty redemptions complement revenue rather than displace it.

More recently, Wyndham added a guest rating–based enhancement to that reimbursement model, further increasing payouts—by as much as 15 percent in some cases—for top-performing, high-quality properties. “In a time when franchisees are getting squeezed by higher wages and higher costs, we’re looking for ways to support them,” Shiwdin said. “That’s a critical part of the generosity pillar.”

Powered by Data

What keeps Wyndham’s expanding loyalty ecosystem from becoming unwieldy is technology—largely invisible to the member but sophisticated behind the scenes.

Wyndham is leveraging first-party data, artificial intelligence and advanced analytics to understand not just where members stay, but how they travel and what they value. That insight informs everything from partnership strategy to personalized messaging.

“When we launched travel bundles, it gave us new visibility into airline preferences, destinations, and travel patterns,” Shiwdin explained. “That helps us understand whether someone is a sports fan, a concertgoer or a cultural traveler—and tailor the experience accordingly.”

The result is higher conversion, stronger engagement and increased communication across channels like email and SMS—designed to add value without becoming noise.

Looking ahead, Wyndham sees loyalty not simply as a retention tool, but as an ecosystem that keeps the brand top of mind well before a booking occurs. “Our vision is that Wyndham Rewards becomes a one-stop destination for travel,” Shiwdin said. “Whether that’s hotels, flights, rentals, cruises, or local experiences, we want to be part of the consideration set long before the stay.”

Early indicators suggest the strategy is working. Since expanding into this broader ecosystem, member lifetime value has increased by double digits, and engagement across both Wyndham Rewards and Insider continues to grow.