financeSkift··1 min·For: Owner, GM, Revenue, Investor, Marketing
Marriott and Hilton Face $7 Billion Loyalty Point Liability
Seven global hotel giants hold a collective $11.6 billion in unredeemed loyalty points, a figure that continues to grow alongside co-branded credit card expansion.
Key Takeaways
- 1Monitor the growing $11.6 billion loyalty liability across major chains, led by Marriott’s $4 billion and Hilton’s $3 billion in unredeemed points.
- 2Analyze 'breakage' rates and the widening gap between points earned versus redeemed to understand program profitability and accounting health.
- 3Evaluate loyalty programs as potential collateral for future financing, following the trend of airlines using member data and point systems as assets.
Source: Skift
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