How Is Hilton Redefining Loyalty with AI and Creators?

How Is Hilton Redefining Loyalty with AI and Creators?

Milena Traikovich is a powerhouse in demand generation, known for transforming cold analytics into high-performing, lead-driven narratives that resonate with modern consumers. With an extensive background in performance optimization, she understands that the current market requires a delicate balance between data-driven precision and emotional storytelling. Today, she joins us to share her insights on how global hospitality leaders are navigating a world where consumers are increasingly savvy about loyalty rewards and where the traditional marketing funnel is being replaced by organic, creator-led conversations. We dive into the shift from transactional loyalty to building “irrational affinity,” the strategic necessity of ceding control to the creator economy, and how artificial intelligence is being harnessed to manage massive inventories and personalized performance marketing.

Many travelers are currently prioritizing loyalty points to offset rising travel costs. How do you design a program that feels like a genuine benefit rather than just another marketing gimmick?

It starts with acknowledging the reality that about one-fifth of consumers are now leaning on rewards to keep their travel dreams alive amidst rising costs for basics like gas and groceries. To make a program feel authentic, you have to move beyond the transactional nature of “buy ten, get one free” and tap into the cultural zeitgeist. We recently saw this in action with a social-first campaign designed to distribute 1 billion loyalty points, using high-profile figures who already have a deep, multi-decade connection to the brand. By making the points the “hero” of the story through sweepstakes that run through the height of the summer season, you create a narrative of empowerment for the traveler. The goal is to make the expertise of brand ambassadors feel like a gift to the fans, turning a simple points program into a fun, organic conversation that fits perfectly into the summer narrative people are already living.

You have mentioned that loyalty is more emotional than transactional. In a competitive market, how can a business move from being a commodity to fostering what is described as “irrational affinity”?

The most important thing to remember is that you wouldn’t want a tenth bagel for free if the first nine you ate were mediocre; loyalty is truly earned at the moment of redemption, not just the moment of earning. You move toward “irrational affinity” by ensuring that the value delivered through different tiers feels tangible and personal to each of the 260 million members in a program. It is about the feeling a traveler gets during the stay—the upgrades, the experiential opportunities like new cruise partnerships, and the reliability of the service. When you stop focusing on the commodity of a hotel room and start focusing on the emotional weight of the stay itself, you build a bond that survives price fluctuations. This emotional depth is what allows a brand to thrive even when consumers are looking for ways to save, because they are loyal to the experience, not just the price tag.

With the creator economy on track to generate $44 billion in ad spending this year, why is it becoming a core media channel for global brands, and what are the risks involved?

Creators have become essential because they offer an immediacy and a level of resonance with their audiences that traditional scripted commercials simply cannot replicate. Using creators requires a brand leader to be brave enough to give up total control over the narrative in exchange for that raw, unfiltered authenticity. In the early days, brands were too prescriptive, resulting in micro-creators trying to mimic TV ads, which felt hollow and forced. Now, the strategy is to trust creators to know their audience well enough to deliver the message in their own voice, even if it means the brand gets a little “tarnished” or less-than-perfectly polished in the process. It is certainly nerve-wracking for a CMO to step back, but when you have a strong global platform like “For the Stay” as a foundation, you can afford to take those risks for the sake of genuine connection.

How does a strong, unified brand platform help a company “de-risk” the environment when working with a diverse range of creators?

A brand platform acts as a North Star that allows you to stop trying to hit a home run with every single piece of content and instead focus on a steady stream of “singles and doubles” that eventually lead to big wins. When you have a clear identity established, like the one Hilton launched in 2022, it provides a safety net that lets you experiment with creators of all sizes, from those with 10,000 followers to those with 10 million. Content has never been cheaper to produce, but the competition for attention has never been more fierce, so you need that central theme to keep the message coherent across thousands of variations. By anchoring the creative output in a solid brand promise, you allow creators the freedom to be themselves without losing the essence of what the company stands for. This balance is what transforms a risky social media post into a powerful piece of brand equity.

In the most recent financial reports, system-wide revenue per available room increased by 3.9%. How do major events like the World Cup or political cycles like the midterm elections influence your marketing strategy?

Marketing for a portfolio of 28 brands across 144 countries requires a constant recalibration based on global and local events that shift consumer behavior. We saw a strong Q2 in 2026, and looking ahead, we are projecting growth between 3% and 3.5% for the year, taking into account how major events act as both tailwinds and headwinds. For instance, the World Cup in the third quarter provides a massive boost in international travel and brand visibility, which we then have to balance against the typical spending lull that can occur during midterm elections in the fourth quarter. It is a game of managing 1.3 million rooms and ensuring that our performance marketing is agile enough to capture demand exactly where it is happening. We are not just selling rooms; we are navigating a complex global landscape where timing and cultural relevance are everything.

Artificial intelligence is “rapidly transforming” how hospitality giants manage their inventory. Can you explain how this technology is helping teams that were previously “behind the eight ball”?

With over 9,200 hotels to manage, keeping descriptions and images for 1.3 million rooms accurate and up-to-date is a monumental task that used to overwhelm even the largest teams. AI allows us to scale those updates effortlessly, ensuring that every single room is bookable and advertised with the most current information at any given second. Beyond just automation, AI gives us the power to generate thousands of campaign variations that are more personalized than anything we’ve seen before, which is vital when a traveler’s interest can shift in a matter of seconds. If a customer is looking for a room and we don’t respond with the right asset in that immediate window, they are gone to a competitor. AI is the engine that allows us to piece together the right creative, ship it, and buy the media in that precise moment of relevance.

As discoverability shifts away from traditional search and toward LLMs and platforms like Reddit, how must brand leaders change their approach to “the funnel”?

The traditional linear funnel is effectively dead because we no longer control the environments where our content is being consumed or interpreted by AI. More than one-third of travelers are already using AI to help plan their summer vacations, which means platforms like LinkedIn, Wikipedia, and Reddit are becoming just as important as our own advertising. We have to ensure our brand narrative is clear and consistent so that when Large Language Models (LLMs) scrape information to answer a user’s question, they are reflecting who we truly are. This has led to the rise of answer engine optimization and generative engine optimization, which are beginning to supplement, and in some cases supplant, traditional SEO. It is a new world where the “user community” talking about us often carries more weight than the ads we place, forcing us to be more transparent and authentic than ever before.

What is your forecast for the future of travel loyalty?

I believe we are entering an era where loyalty will be defined by “predictive personalization” driven by the intersection of AI and emotional data. As we move away from static search and toward generative engines, brands will need to prove their value before a traveler even visits a website, making the “Stay” the only thing that truly matters. We will see a shift where the 260 million members of programs like Hilton Honors will expect their rewards to be as unique as their own travel habits, delivered in real-time through the platforms they use to converse, not just the ones they use to book. Success will belong to the companies that can cede creative control to their community while using technology to maintain a flawless, 1.3-million-room-scale consistency that feels like a boutique experience.

Subscribe to our weekly news digest.

Join now and become a part of our fast-growing community.

Invalid Email Address
Thanks for Subscribing!
We'll be sending you our best soon!
Something went wrong, please try again later