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Blockchain is transforming business operations across industries. They can enhance customer experience and boost customer loyalty for your brand through reward programs.   

Loyalty programmes are nothing new, but blockchain loyalty is something that probably will change the future of loyalty programs. 

Customer loyalty and customer engagement are among the leading priorities for most companies.   

By 2026 the loyalty market is expected to grow to USD 18.6 billion.   

Among several marketing steps, loyalty programs can have a long-lasting effect on customers when used correctly. For this reason, loyalty and reward programs are treated as a strategic investments in a brand’s life cycle. While loyalty programs are desirable, customers despise acquiring and trading reward points.  

Blockchain has the potential to solve this issue by fixing some of the fundamental complications with traditional loyalty programs mentioned below: 

  • Low redemption rates 
  • High account inactivity 
  • Low customer retention 

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The importance of Blockchain loyalty programs in the hospitality industry 

Though the loyalty market size might grow to USD 18.6 billion by 2026, the space is also becoming saturated. 

Companies are finding various ways to differentiate themselves. And blockchain technology has the potential to reimagine traditional loyalty programs and bring change. 

Traditional loyalty points are not interchangeable or transferable. This results in low redemption rates of earned rewards. 

Loyalty programs designed with blockchain technology can bring different loyalty programs under one roof.

Blockchain provides access to a single wallet where customers can store all their reward points from various programs. 

They provide a decentralized and immutable ledger to store and manage customer data and rewards. 

Customers can earn and redeem rewards across a network of participating companies, with all transactions recorded and secured using blockchain technology.  

By leveraging smart contracts, blockchain loyalty programs can automate the redemption and issuance of rewards, reducing costs and improving efficiency. 



Benefits of Blockchain Loyalty Rewards 


Open System 

A blockchain token is recorded publicly, so it is irrevocable.  

So, the issuing company cannot put away the token points for any reason.  

With blockchain programs, customers do not have to worry about expired tokens or devalued points anymore.  

It is also great for businesses as it can boost customer loyalty and provide a great customer experience. 

Increased Trust and Transparency 

With blockchain, customers have control over their data and rewards. It increases trust in the loyalty program and the also the brand.  

Blockchain technology ensures that customers can fully control when they can redeem their rewards. It also secures the loyalty system and makes it transparent and trustworthy. 

Improved Efficiency and Reduced Costs 

Blockchain systems eliminate intermediaries and reduce transaction costs. It makes the system more efficient and cost-effective for both the brand and the customer. This technology allows faster and highly secured transactions. 

Enhanced Customer Experience 

With blockchain loyalty systems, customers can smoothly transfer and redeem rewards.  

It provides a smooth and tailored experience. Customers can earn reward points from multiple companies, creating a holistic loyalty experience.  

Blockchain technology allows companies to personalize offers and promotions to customers based on their individual preferences and behaviours, enhancing the overall customer experience. 

Better Data Management and Analytics 

Blockchain technology allows more accurate and secure data management.  

It enables companies to make improved data-driven decisions and provide superior customized offers and promotions.  

Brands can use blockchain to gain insights into customer preferences and tailor loyalty programs to meet customer needs. 

Competitive Advantage 

Companies that adopt blockchain systems can differentiate themselves from competitors and attract a more tech-savvy and loyal customer base.  

By embracing the power of blockchain technology, companies can create a competitive advantage and establish themselves as leaders in the loyalty space. 

Some Examples of Blockchain Loyalty Programs in the Hospitality Industry  



AccorHotels, a French multinational hospitality company, has partnered with Winding Tree, a blockchain-based travel platform, to create a decentralized loyalty program. ALL Loyalty Reward allows customers to earn and redeem rewards across AccorHotels’ network of properties. 

Shangri-La Hotels and Resorts  

Shangri-La Hotels and Resorts has partnered with Rakuten, a Japanese e-commerce company, to create a blockchain-based loyalty program. Shangri-La Loyalty Program uses blockchain technology to track customer rewards and provide a more secure and efficient loyalty experience. 

Winding Tree  

Winding Tree is a blockchain-based travel platform that offers services for hotels, airlines, and other travel providers. The platform includes a loyalty program that allows customers to earn and redeem rewards across a network of participating companies, with all transactions secured and recorded using blockchain technology. 



W Hotel  

W Hotel, part of the Marriott International group, has launched a blockchain-based loyalty program called BETA. The program uses blockchain technology to allow guests to earn points by engaging with the brand’s social media channels and then redeeming those points for exclusive experiences and rewards. 



Sodexo, a global food services and facilities management company, has launched a blockchain-based loyalty program–Sodexo Benefits and Rewards Services. The program uses blockchain technology to securely store customer data and provide personalized rewards and experiences across industries, including hospitality. 

As more companies adopt blockchain technology, we expect to see a more customer-centric and personalized loyalty landscape in the future.  

Companies that embrace blockchain-based loyalty solutions will be well-positioned to differentiate themselves from competitors.  

And provide a more seamless and personalized loyalty experience for their customers. 

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