• Happy Rewards
• February 12, 2026

Inside the Choice Hotels Loyalty Program

If you’re looking to understand how major hotel brands keep guests coming back for more, you’re in the right place—especially with our innovative loyalty platforms HappyRewards.io, leading the way in modern loyalty solutions. Today, we’re diving deep into Choice Privileges, one of the most successful loyalty programs in the hospitality industry.

Whether you’re considering launching your own membership program or simply want to learn from the best, this comprehensive guide will show you exactly how Choice Hotels rewards work and why they’re so effective at driving customer retention.

Choice Privileges isn’t just another point system—it’s a masterclass in loyalty marketing that has earned recognition as the #1 hotel rewards program by multiple industry authorities.

In this post, we’ll explore how Choice Hotels uses its loyalty program to boost customer lifetime value (CLV), enhance customer engagement, and create a competitive advantage in an increasingly crowded marketplace.

You’ll discover actionable insights about membership tiers, bonus points strategies, redemption value, and much more—all backed by real data and industry research. Let’s get started!

Structure of the Choice Privileges Loyalty Program

Before we dive into the nuts and bolts, let me give you the big picture of how Choice Privileges operates.

Think of it as a beautifully designed incentive program that rewards guests at every step of their journey, from their first booking to becoming Diamond Elite status members.

Portfolio of Choice Privileges Coverage

Choice Privileges operates across an impressive portfolio of properties, allowing members to earn and redeem reward points at over 7,000 Choice-branded hotels across a diverse portfolio of brands in 46 countries and territories.

The program includes popular brands like :

• Cambria Hotels
• Comfort Inn
• Quality Inn
• Sleep Inn
• Clarion Hotels
• MainStay Suites
• Econo Lodge
• Rodeway Inn
• Ascend Hotel Collection
• Plus partnerships with Radisson Rewards Americas, Preferred Hotels & Resorts, and Bluegreen Vacations.

What makes the Choice Privilege loyalty program unique?

Accessibility

What makes this program truly powerful from a customer retention perspective is its accessibility.

• Unlike some competitors, Choice Privileges is completely free to join, has no blackout dates for reward nights, and offers a low price guarantee that builds brand trust.
• This approach removes friction from the onboarding process, making it easy for both business owners and common travelers to experience the benefits immediately.

Simplicity

• The beauty of the Choice Hotels approach lies in its simplicity and value proposition.
• Members earn points per dollar spent on eligible stays, with the earning rate varying based on membership tiers.
• Basic members earn 10 points per dollar spent on their room rate (excluding taxes and incidental charges) at most participating Choice hotels, creating a straightforward transactional loyalty foundation that guests can easily understand.

This structure exemplifies excellent retention strategy design. By removing complexity and making the value exchange clear from day one, Choice Hotels reduces churn and increases customer satisfaction.

The program demonstrates how data-driven marketing and customer centricity can work together to create a scalable rewards system that appeals to diverse customer segments.

The Four-Tier Membership System of Choice Loyalty Program Explained

Now, let’s talk about the heart of Choice Privileges: its tiered loyalty structure. This is where the program really shines in terms of customer engagement and tier progression.

Understanding these tiers is crucial for business owners looking to implement similar retention strategies.

Every journey starts with a single step, right? When you join Choice Privileges, you immediately become a base member with access to foundational benefits. This is smart loyalty marketing—you’re rewarded from day one, which creates instant emotional loyalty and encourages that first qualifying stay.

Member (Base) Benefits

• Earn up to 10 points per $1 USD spent on guest rooms at over 7,000 Choice Hotels® locations worldwide.
• Member rates (exclusive discounts).
• Complimentary high-speed internet at participating properties.
• Access to the Choice Hotels app for easy booking and account management.
• Generous points expiration policy: Complete any qualifying points activity once every 18 months and your points never forfeit.

This approach to point expiration is brilliant from a customer experience (CX) perspective. Many loyalty programs frustrate members with aggressive expiration timelines, but Choice Hotels removes this pain point, demonstrating brand affinity and reducing customer frustration.

Gold Elite

Here’s where things get interesting for frequency of purchase optimization. Starting in 2026, members can reach Gold Elite status at just 5 nights (previously 10), demonstrating the company’s commitment to faster recognition and milestone rewards.

Gold Elite Benefits

• 10% bonus points multiplier on all stays (earn 11 points per dollar spent).
• Early check-in and late checkout (subject to availability).
• Preferred parking at select hotels.
• Welcome gift of bonus points or refreshments at participating properties.
• PENN Play status match benefit, allowing access to benefits at more than 20 casino hotels nationwide through partner integration—a perfect example of coalition loyalty and partner ecosystems in action.

The strategic value here is clear: by offering tangible perks that enhance customer experience, Choice Hotels encourages repeat purchase behavior.

Platinum Elite

For guests who stay 15 nights annually (reduced from 20 in 2026), Platinum Elite status represents the sweet spot of customer lifetime value optimization. Platinum members get a 25% bonus, earning 12.5 points per dollar spent—a significant jump that incentivizes increased wallet share.

Platinum Elite Benefits

• All Gold benefits.
• Enhanced perks including room upgrades at select brands.
• Dedicated Elite Member Services.
• Rollover nights that make status maintenance easier.

The milestone rewards approach here demonstrates excellent gamification principles. By creating clear goals and rewarding achievement, Choice Hotels drives brand loyalty and increases Net Promoter Score (NPS). For more on gamification in rewards, see HappyRewards.io’s breakdown of the PlayStation Stars loyalty program.

What’s particularly smart about this tier is how it balances VIP benefits with accessibility. Unlike some programs where mid-tier status feels underwhelming, Platinum delivers real value.

Diamond Elite

Now we’re talking about the VIPs—the guests who generate the most customer lifetime value. Diamond Elite status at 35 nights (reduced from 40) represents Choice Hotels’ most valuable customers. These members earn a 50% bonus, translating to 15 points per dollar spent.

Diamond Elite Benefits

• All lower-tier benefits.
• Premium perks: complimentary breakfast for two at select Radisson brands.
• Guaranteed room availability at participating Cambria Hotels, Ascend Hotel Collection, and Radisson properties (with 48-hour advance booking).
• Enhanced room upgrade priority.

From a customer segmentation perspective, this tier exemplifies how to treat high-value customers.

Research shows that loyal clients stay 28% longer and spend 22.4% more than infrequent travelers, and 30% to 60% of hotel revenue comes from loyalty members. By investing in Diamond-level benefits, Choice Hotels ensures their best customers feel valued and continue generating disproportionate revenue.

Titanium Elite (New Top Tier in 2026)

Hold onto your hats—Choice Hotels just raised the bar! The new Titanium Elite status, achievable at 55 nights or 110,000 Elite Qualifying Credits, introduces the program’s most exclusive benefit.

Titanium Elite Benefits

• All Diamond benefits.
• The Titanium travel award: Book one room for up to seven nights at 400+ premium properties around the world for just half the points.

This is retention strategy genius. By creating an aspirational top tier with truly exclusive offers, Choice Hotels gives their most devoted customers something to strive for while preventing competitive advantage erosion. It’s a textbook example of how experiential rewards and surprise and delight moments create attitudinal loyalty beyond simple transactions.

The Titanium tier demonstrates sophisticated RFM analysis (Recency, Frequency, Monetary value) in action, targeting the highest-value segment with benefits that maximize perceived value while managing costs through the half-price redemption structure. For future trends in such tiered systems, read our post on what to expect from loyalty programs in 2026.

How Guest Earn Choice Privileges Points?

Alright, let’s talk about the fun part—actually earning those points! Understanding the earning mechanisms is crucial for business owners who want to replicate this success in their own loyalty programs. Choice Hotels has created multiple pathways to point accumulation, demonstrating excellent omnichannel loyalty design.

Primary Earning: Hotel Stays

The primary earning method remains the most straightforward: stay at participating Choice Hotels properties. Members earn points per dollar based on their tier level, and this must be booked through direct booking channels.

To earn Choice Privileges points, you must book directly with Choice Hotels through one of the following channels:

• The toll-free express reservation line
• The Choice Hotels website or mobile app
• Directly with the hotel

This direct-to-consumer (D2C) strategy is smart business. By incentivizing direct booking, Choice Hotels reduces reliance on third-party booking sites and their hefty commissions while collecting valuable first-party data and zero-party data for hyper-personalization efforts.

Base Earning Rate

• All members earn 10 points per $1 USD spent on eligible guest room charges (excluding taxes and incidental charges) at most participating Choice hotels (over 7,100 locations worldwide).

Tier Bonuses (effective with 2026 updates) Higher tiers provide bonus points on top of the base rate:

• Gold Elite: 10% bonus → 11 points per $1
• Platinum Elite: 25% bonus → 12.5 points per $1
• Diamond Elite: 50% bonus → 15 points per $1

(The content references up to 15 points per dollar for Diamond; higher multipliers like 16x-22x may apply with co-branded credit cards on stays.)

Elite Qualifying Credits (EQCs) and Nights The concept of Elite qualifying nights and Elite qualifying credits (EQCs) adds another layer. Members earn EQCs through stays and credit card spending:

• Earn 10 EQCs per $1 spent during eligible stays.
• Additional bonus 10 EQCs per $1 when using a Choice co-branded credit card.

This dual-track system rewards both frequency and spending—a sophisticated approach to customer segmentation that balances volume and value.

Co-Branded Credit Cards

Here’s where loyalty marketing meets financial services. Choice Privileges has partnered with Wells Fargo to offer co-branded credit cards that accelerate point earning.

Key cards include:

• Choice Privileges Mastercard (no annual fee)
• Wells Fargo Choice Privileges Select Mastercard ($95 annual fee)

Earning Rates (examples from program details):

• Up to 5x–10x points (or higher) on stays at participating Choice Hotels properties and point purchases.
• Bonus categories: e.g., 3x on gas stations, grocery stores, home improvement stores, phone plans.
• 1x on other purchases.

The Select card automatically grants Platinum Elite status, showcasing a brilliant tier progression shortcut that adds tremendous value for frequent travelers. This is behavioral triggers in action—by offering instant status, Choice Hotels encourages credit card adoption and increases customer engagement through everyday spending, not just hotel stays.

The Choice Privileges Mastercard could save the average person roughly $1,900 over the first two years of use (per WalletHub calculations). This quantifiable value demonstrates how cashback rewards and points per dollar mechanics create compelling value propositions for cardholders.

Points Transfers from Other Programs

In today’s interconnected loyalty ecosystem, points transfer capabilities are essential. Choice Hotels has established partnerships with major credit card reward programs, allowing members to transfer points:

• American Express Membership Rewards: 1:1 ratio
• Capital One miles: 1:1
• Citi ThankYou Rewards: 1:2
• Wells Fargo Rewards: 1:2

This coalition loyalty approach expands the program’s reach and provides flexibility for members. It’s a win-win: Choice Hotels attracts new members who already have transferable points, while credit card companies offer more redemption options, increasing their programs’ appeal.

Partner Ecosystem and Other Ways to Earn

Choice Hotels has created a robust partner ecosystem that extends earning opportunities beyond hotel stays.

Key Partners and Methods

• Choice Privileges Eat & Earn: Dine at over 30,000 U.S. restaurants to earn points (e.g., 5 points per $1 at participating locations when paying with a linked card).
• Car Rentals: Avis and Budget—earn points on qualifying rentals, plus up to 35% off base rates.
• Cruises: Partnerships with Carnival, Royal Caribbean, and others—earn points (e.g., up to 10 points per $1 on select bookings) or redeem for cruises.
• Other Partners: Surveys via e-Rewards (earn points for opinions), Vinesse Wine Club, hosting events at Choice hotels, and more non-travel activities.

This diversity in earning creates a more engaging customer journey and reduces the risk of point expiration by giving members more reasons to interact with the program regularly. It demonstrates excellent cross-selling and up-selling strategy through strategic alliances. For ideas on building similar ecosystems, see our article on multi-channel loyalty program strategies.

Redemption Options and Value Maximization in Choice Privilege

Now that we’ve covered earning, let’s talk about spending those hard-earned points. This is where the redemption rate and redemption value come into play—critical metrics for any incentive program.

Free Nights at Choice Hotels

The bread and butter of Choice Hotels rewards is free nights. Redeem points for reward nights at over 7,100 Choice Hotels locations worldwide—starting at just 8,000 points (with some as low as 6,000 via promotions; note: values may vary slightly by date and program updates). Points are worth approximately 1.07 cents apiece when redeemed for Choice stays, offering solid value.

The no blackout dates policy is a massive competitive differentiator. Many hotel loyalty programs restrict redemptions during peak periods, frustrating members and eroding brand trust. By eliminating blackouts, Choice Hotels demonstrates customer centricity and removes friction from the redemption rate equation.

RewardSaver Program Offers certain dates at reduced point levels (as low as 6,000–8,000 points). This dynamic pricing approach helps Choice Hotels manage inventory while providing exceptional value to members, illustrating smart predictive analytics and revenue management integration.

Points + Cash Option

One innovative feature is Points + Cash, which allows members to combine as little as $17 and 6,000 points for a reward night. This flexibility addresses a common loyalty program pain point: having some points but not quite enough for a free night.

By offering hybrid redemptions, Choice Hotels increases redemption rate (members use points more frequently) while capturing some cash revenue. It’s a brilliant example of value exchange that benefits both parties and keeps members engaged with the program.

Extended Redemption Partners

The redemption value extends far beyond Choice Hotels properties. Members can redeem points at:

• Bluegreen Vacations resorts
• PENN casinos
• Luxurious Preferred Hotels & Resorts worldwide

This partnership with Preferred Hotels & Resorts is particularly valuable, offering access to upscale properties that complement Choice’s mid-scale and economy focus.

The PENN Play status match integration creates a unique value proposition for casino enthusiasts, demonstrating how partner ecosystems can attract specific customer segments and increase wallet share across multiple entertainment verticals.

Additional Flexible Options

For maximum flexibility, Choice Privileges allows members to convert points to:

• Airline miles with major carriers (via Rewards Exchange)
• Gift cards at popular retailers and restaurants (e.g., Shell, Lowe’s, Home Depot, Kohl’s, Applebee’s)
• Charitable donations

While airline miles conversions typically offer lower redemption value than hotel stays, this flexibility increases program appeal and prevents point expiration by giving members who don’t travel frequently alternative uses for their points. It’s a smart churn reduction strategy—keep members engaged even during periods of low hotel usage.

The charitable donation option adds a feel-good element that can strengthen emotional loyalty. Research shows that 63% of respondents agree they are more likely to do business with brands/companies whose purpose aligns with their values, and offering point donations taps into this trend.

Choice Hotels Rewards Elite Benefits That Drive Customer Retention

Let’s dig deeper into the VIP benefits that make elite qualifying nights worthwhile. This is where Choice Privileges transforms from a simple point system into a comprehensive customer experience enhancer.

Welcome Gift

Nothing says “we value you” quite like a welcome gift. Elite members enjoy a welcome gift of bonus points or beverage and snack at check-in on qualifying stays at participating hotels. This small touch creates surprise and delight moments that boost customer satisfaction and brand affinity.

From a behavioral economics perspective, these tangible recognition moments create positive associations with the brand. They’re non-monetary incentives that cost relatively little but generate disproportionate goodwill—exactly the kind of scalable rewards that smart business owners should consider.

Early Check-In and Late Checkout

One of the most practical VIP benefits is access to early check-in and late checkout at participating properties. For business travelers, this flexibility can mean the difference between making or missing a meeting. For leisure travelers, it extends vacation time without additional cost.

• Gold Elite and above enjoy early check-in and late checkout (when available), demonstrating how Choice Hotels uses experiential rewards to enhance the customer journey. These benefits cost the hotel minimal expense but deliver significant perceived value—a hallmark of effective loyalty marketing.

Preferred Parking

Preferred parking might seem minor, but it’s another touchpoint that enhances customer experience. Reserved parking near hotel entrances saves time and adds convenience, particularly for guests arriving late or departing early.

This benefit exemplifies customer centricity—Choice Hotels identified a pain point (finding parking) and solved it for their best customers. It’s the kind of thoughtful personalized offer that builds lasting brand loyalty.

Room Upgrades and Guaranteed Availability

Elite Member room upgrades are offered at hotels under the Cambria and Ascend Hotel Collection brands worldwide. Upgraded room types may include:

• Suites
• Recently renovated rooms
• Rooms on a higher/lower floor
• Rooms with favored views

Diamond Elite members receive guaranteed availability at select brands (Cambria Hotels, Ascend Hotel Collection, and participating Radisson properties) with 48-hour advance booking. This provides peace of mind during busy travel periods.

This is value proposition gold—it transforms loyalty status into a practical benefit that members actively use and appreciate.

Accelerated Earning and Rollover Nights

The bonus points structure incentivizes tier progression effectively:

• Gold Elite: 10% extra (11 points per $1)
• Platinum Elite: 25% extra (12.5 points per $1)
• Diamond Elite: 50% extra (15 points per $1)

This accelerated earning creates a virtuous cycle: more stays → higher status → more points per stay → more reward nights → more stays.

Rollover nights are another retention-friendly feature. Members who earn extra Elite qualifying nights can carry them over into the next year, making it easier and faster to achieve or maintain Elite status. This policy reduces the frustration of “starting over” each January and encourages consistent engagement.

Technology and Digital Experience Incorporated In Choice Loyalty Rewards

In today’s digital-first world, the loyalty app and mobile experience can make or break a program. Choice Hotels has invested significantly in digital wallet functionality and mobile coupons to meet modern traveler expectations.

The Choice Hotels App – Central Hub for Engagement

The Choice Hotels app serves as the central hub for member engagement, offering:

• Seamless booking
• Points tracking
• Account management
• Access to member rates
• Points + Cash redemptions
• Direct booking (reducing commission costs)

This omnichannel loyalty approach ensures members can interact with the program wherever they are, whenever they want.

From a customer engagement perspective, mobile apps are crucial. Research indicates that 69% of consumers will use a mobile app more often because of rewards and incentives, demonstrating how gamified rewards and push notifications can drive regular interaction.

The app is essentially a pocket-sized loyalty manager that keeps members engaged between stays—a key factor in reducing churn.

Backend Technology Enabling Seamless Experiences

Behind the scenes, Choice Privileges leverages:

• Modern cloud-based loyalty infrastructure
• API integration for real-time point tracking and instant redemption processing
• Integration with travel partners

For business owners considering loyalty programs, this illustrates the importance of marketing automation and CRM integration. The ability to trigger personalized offers based on behavioral triggers and member customer segmentation requires a robust technical infrastructure.

Machine learning and artificial intelligence in marketing increasingly power these systems, enabling hyper-personalization at scale. By analyzing past behavior, Choice Hotels can predict preferences and deliver targeted communications through the loyalty app, email, and other channels.

Data-Driven Marketing and Customer Insights

The real power of modern loyalty programs lies in data-driven marketing. Every interaction generates first-party data that Choice Hotels can use to enhance customer experience. This includes:

• Stay preferences
• Spending patterns
• Redemption behavior
• Engagement with communications

This data enables sophisticated customer segmentation and RFM analysis (Recency, Frequency, Monetary value), allowing Choice Hotels to:

• Identify high-value members for targeted re-engagement campaigns
• Launch win-back campaigns for lapsed members

Privacy-compliant marketing is crucial here. By transparently collecting and using zero-party data (information customers voluntarily share) and first-party data (behavior tracked during direct interactions), Choice Hotels builds brand trust while delivering relevant personalized offers.

Innovative Features That Set Choice Privileges Apart

What makes Choice Privileges stand out in the crowded hotel loyalty landscape? Let’s explore some unique features that drive customer retention and brand advocacy.

Status Matching and Cambria Diamond Elite Status Jump

Status matching is a brilliant customer acquisition tool. If someone has Elite Status in a competitor’s loyalty program, Choice will match that status one time.

• The status match is valid for the current calendar year if matched anytime between January and June.
• It is valid for the current and the following year if matched anytime between July and December.

This removes barriers to switching, directly targeting competitors’ best customers with a compelling value proposition.

The Cambria Diamond Elite Status Jump program takes this further, offering top-tier Diamond status after one qualifying stay at a Cambria Hotel—an aggressive but effective customer acquisition strategy.

From a competitive advantage perspective, status matching demonstrates confidence in the program’s ability to retain members once they experience the benefits. It’s a classic push-pull strategy that makes switching easy and rewarding.

Milestone Rewards Every 5 Nights

The concept of milestone rewards has been enhanced with the announcement that members will be able to gain milestone rewards every five qualifying nights between status tiers, providing more frequent recognition and rewards.

This addresses a key challenge in tiered loyalty programs: keeping lower-tier members engaged during the long climb to elite status. By creating milestone rewards at five-night intervals, Choice Hotels provides regular positive reinforcement that encourages continued participation.

These Your Extras benefits might include:

• Bonus points
• Gift cards
• Other perks

The psychological impact of frequent rewards cannot be overstated—it creates a sense of progress and achievement that fuels emotional loyalty beyond simple transactions.

Low Price Guarantee

The low price guarantee demonstrates brand trust and confidence in pricing. If your claim is approved, Choice will:

• Honor the lower rate for your stay
• Give you a $50 reward card after your stay (if you’re a U.S. or Canadian resident)

This policy removes purchase anxiety and incentivizes direct booking by assuring members they’re getting the best deal. It’s a powerful retention strategy that builds confidence in the brand and encourages members to book directly rather than shopping around on OTAs.

Diverse Portfolio and Brand Integration

By expanding beyond traditional hotels to include vacation rentals, WoodSpring Suites extended stays, and Suburban Studios, Choice Hotels offers flexibility that meets diverse travel needs. This variety keeps members within the Choice ecosystem across different trip types.

The integration of Radisson Rewards Americas brands brought upscale options like Radisson Blu to the portfolio, addressing a previous gap in the luxury segment.

Now members can earn and redeem points whether they’re budget-conscious road-trippers staying at Econo Lodge or business travelers booking Cambria Hotels—all within one membership program.

Lessons for Business Owners: Applying Choice Hotels’ Success

So what can business owners learn from the Choice Privileges success story? Let’s distill the key principles that work across industries.

1. Keep the Value Proposition Crystal Clear

Choice Privileges succeeds because the value proposition is crystal clear: earn points on stays, redeem for free nights and other rewards, with no blackout dates and generous points expiration policies. Members understand exactly what they’re getting and how to get it.

For your business:

• Define a simple, compelling value exchange.
• What are you offering in return for customer loyalty? (e.g., cashback rewards, discount codes, free shipping, early access to products)
• Make sure the value is obvious and desirable.

2. Use Tiered Structures with Gamification

The membership tiers in Choice Privileges—from base to Gold Elite, Platinum Elite, Diamond Elite, and now Titanium Elite—create a clear path for tier progression. This gamification element taps into our natural desire for achievement and status.

Research shows that businesses with tiered loyalty programs reported a return on investment 1.8 times higher than those without tiers.

Recommendations:

• Implement your own tiered loyalty structure with escalating benefits.
• Each tier should offer meaningful improvements.
• Use milestone rewards between tiers to maintain motivation.

3. Prioritize Ease of Use and Accessibility

One of Choice Privileges’ strengths is the ease of earning and redeeming points. The loyalty app makes tracking points simple, direct booking is straightforward, and redemption options are diverse and flexible.

56% of members prefer one loyalty program over another because of ease-of-use and accessibility.

Focus on:

• Seamless checkout
• Intuitive member portal design
• Clear communication about earning and redemption opportunities
• Leverage marketing automation to send timely notifications about points balances, expiring rewards, or redemption opportunities

4. Build a Robust Partner Ecosystem

Choice Hotels doesn’t operate in isolation. Partnerships with PENN Play, Bluegreen Vacations, Preferred Hotels & Resorts, car rental companies, dining networks, and credit card issuers expand the earning and redemption ecosystem exponentially.

This coalition loyalty approach creates a partner ecosystem that increases program utility and stickiness.

For your business:

• Consider strategic partnerships that complement your offerings.
• Cross-selling opportunities with non-competitive businesses can enhance your value proposition while sharing customer acquisition costs.

5. Leverage Data for Personalization

Modern loyalty programs are powered by data. Choice Hotels uses CRM integration, behavioral triggers, and predictive analytics to deliver personalized offers that resonate with individual members.

54% of customers are more likely to make repeat purchases if they feel personally appreciated by a brand.

Invest in:

• Systems that collect first-party data and zero-party data ethically
• Use it to enhance customer experience
• Machine learning to identify patterns, predict churn risk, and recommend targeted interventions
• Even simple RFM analysis can dramatically improve campaign effectiveness

6. Build Emotional Loyalty Beyond Transactions

While transactional loyalty (earning points for purchases) forms the program foundation, Choice Privileges’ success comes from building emotional loyalty through recognition, surprise and delight moments, and genuine customer centricity.

Customers with strong emotional ties to a brand show 306% higher lifetime value.

Strategies:

• Features like welcome gifts, birthday rewards, and personalized service create emotional bonds
• Build brand community through social proof, user-generated content, and opportunities for brand advocacy
• Make members feel like part of an exclusive club, not just transaction machines

7. Measure, Track, and Continuously Improve

Choice Hotels doesn’t just run a loyalty program—they measure its effectiveness rigorously. Key metrics include redemption rate, Net Promoter Score (NPS), customer lifetime value (CLV), churn reduction, and program contribution to overall occupancy and revenue.

• Establish clear KPIs: customer retention rates, frequency of purchase, average order value (AOV), customer satisfaction scores, and return on investment
• Use customer feedback loops to continuously refine the program
• Track both leading indicators (engagement metrics like app opens, email open rates, point earning activity) and lagging indicators (revenue impact, CLV growth, retention improvement)

Common Challenges and How Choice Hotels Addresses Them

No loyalty program is perfect, and understanding how Choice Hotels addresses common challenges provides valuable insights for business owners.

Aggressive Point Expiration Policies

Many loyalty programs frustrate members with aggressive point expiration policies. Choice Privileges solves this elegantly:

• Complete any qualifying points activity once every 18 months and your points never forfeit.
• Upcoming enhancement: Points will never expire for Elite status holders (Gold Elite and above), further reducing friction and building brand trust.

This generous policy reduces anxiety and encourages occasional users to maintain their accounts. For your business, consider whether aggressive expiration policies are worth the member frustration they create. Often, the administrative savings of clearing inactive points are offset by the goodwill damage and churn created.

Loss of Status Due to Life Changes

A common frustration with tiered loyalty programs is losing hard-earned status due to life changes (new job, economic downturn, personal circumstances) that reduce travel.

Choice Hotels addresses this with:

• Rollover nights that make maintaining status easier.
• New “status soft landing” benefit (starting in 2027): Elite members who don’t travel as frequently will only drop a single tier per year, preventing the jarring experience of falling from Diamond to base member overnight.

These policies demonstrate empathy and long-term thinking—they prioritize member relationships over short-term metrics, understanding that life circumstances change and former high-value customers may return to heavy usage patterns.

Program Complexity and Confusion

As loyalty programs add features and benefits, they risk becoming confusing. Choice Privileges manages this through:

• Clear communication
• An intuitive loyalty app
• A straightforward earning structure (10 points per dollar, with tier-based multipliers)

The key is balancing feature richness with usability. While power users might appreciate complex redemption strategies and partner integrations, casual members need simple pathways to value. Design for both audiences by offering simple default options with advanced features available for those who seek them.

Standing Out in a Crowded Market

In a market where every major hotel chain offers a loyalty program, differentiation is challenging. Choice Hotels addresses this through:

• Unique features (status matching, generous rollover nights, no blackout dates)
• Competitive earning rates
• Expanding the partner ecosystem

The recognition as #1 hotel rewards program provides social proof that drives acquisition. Awards and recognition should be actively marketed to demonstrate brand trust and quality to prospective members.

For your business, identify what makes your program unique. Is it the redemption value? The earning rate? Exclusive offers or experiential rewards? Lean into these differentiators in your loyalty marketing communications.

The Future of Choice Privileges: 2026 Enhancements

Looking ahead, Choice Hotels isn’t resting on its laurels. The announced 2026 enhancements demonstrate ongoing innovation and commitment to customer retention.

Faster Tier Progression

Members will be able to reach:

• Gold Elite status at 5 nights (previously 10)
• Platinum Elite status at 15 nights (previously 20)
• Diamond Elite status at 35 nights (previously 40)

This accelerates tier progression and provides faster access to VIP benefits. The change acknowledges changing travel patterns and increased competition. By making elite status more accessible, Choice Hotels can attract members from competitors and increase the proportion of their customer base enjoying enhanced benefits—which drives brand loyalty and repeat purchase behavior.

New Titanium Elite Tier

The new Titanium Elite status, achievable at 55 nights or 110,000 Elite Qualifying Credits, creates an aspirational top tier with the exclusive Titanium travel award:

• Book one room for up to seven nights at 400+ premium properties around the world for just half the points.

This addresses a challenge in many loyalty programs: super-elite members who’ve “maxed out” the program and have nothing left to achieve. Titanium status creates a new goal for the most engaged members while providing tremendous value through the half-price premium property redemption.

Milestone Rewards Every 5 Nights

Milestone rewards (such as bonus points and gift cards) every five qualifying nights between status tiers provide frequent positive reinforcement throughout the member journey.

This gamification approach keeps members engaged during the climb toward elite status—a period when disengagement risk is highest. Frequent rewards create momentum and make the journey feel rewarding, not just the destination.

Return and Earn Bonus

The Return and Earn feature will reward members with 1,000 bonus points after their 2nd and 3rd qualifying stays each year, incentivizing early-year engagement and establishing booking patterns.

This is smart behavioral economics: by rewarding the second and third stays of the year, Choice Hotels encourages members to quickly establish the habit of booking with Choice, increasing the likelihood of continued engagement throughout the year.

Points Transfer to Friends and Family

Members will be able to transfer points to friends and family, adding flexibility and enabling new use cases.

• Points sharing can help members reach redemption thresholds faster by pooling points.
• Enables gifting stays to loved ones—expanding the emotional value of points beyond personal use.

This feature also facilitates referral program dynamics: members can gift points to friends trying the program for the first time, effectively turning existing members into brand advocates who actively recruit new participants.

Conclusion

Throughout this deep dive, Choice Privileges stands out as a prime example of how a thoughtfully designed loyalty program can powerfully drive customer retention, boost customer lifetime value (CLV), and build lasting competitive advantage.

Its success stems from strategic focus on exceptional customer experience, ongoing innovation, and data-driven decision-making.

Key lessons for business owners include:

• Crafting a simple, compelling value proposition with transparent earning and redemption rules.
• Implementing tiered loyalty structures to motivate progression and generously reward top customers.
• Harnessing technology for personalized offers and enhanced engagement through data-driven marketing.
• Developing partner ecosystems to extend value beyond core services.
• Prioritizing emotional loyalty via recognition, surprise and delight moments, and true customer centricity—beyond mere transactional points.

Choice Privileges proves that loyalty marketing is a core retention strategy woven into every stage of the customer journey. These principles apply universally—whether in hospitality, retail, dining, or beyond.

The future favors businesses that master retention through smart loyalty programs. By investing in genuine value, understanding customers via CRM and first-party data, and delivering frictionless, personalized experiences, companies earn greater spending, lower churn, strong brand advocacy, and sustained growth.

Ready to build your own success story? Study proven models like Choice Privileges, adapt them to your context, and consider modern tools like HappyRewards.io to turn loyal customers into lifelong advocates effortlessly.