.svg){kind=icon}
Contact
Log in
As more hotel chains and retail concepts invest in loyalty, many face a strategic choice. Should you build your own loyalty program from scratch, or base it on an existing SaaS platform like Loyco?
Both options have pros and cons. The decision ultimately comes down to resources, timing, and ambition.
For the largest players, developing a fully customized loyalty program can be tempting.
An in-house system gives complete freedom to define functions, design, and integrations down to the smallest detail. It can also offer more control over data, privacy, and the customer journey.
A self-built program can serve as a strong branding tool, with every element designed to reinforce the company’s identity.
Companies with large IT departments and substantial budgets can therefore afford to create their own loyalty ecosystems.
But it requires a lot.
An in-house loyalty program is expensive, time-consuming, and demanding to maintain.
Development, design, testing, and security all need to be handled internally or through external partners. On top of that, the system must be updated continuously in line with new customer expectations and legal requirements.
There is also the risk of dependence on specific people or vendors, which can make further development difficult.
For many, the cost and complexity eventually outweigh the benefits.
In practice, it is usually only large international brands that have the resources to build everything from the ground up, such as Marriot Bonvoy or SAS EuroBonus.
A modern SaaS platform like Loyco makes loyalty accessible even for small and medium-sized businesses.
You get a complete system for logins, points, bonuses, gift cards, campaigns, and customer data without having to build it yourself.
This provides a significantly lower cost and a much faster time to market.
Instead of spending months on development and testing, companies can launch within weeks and adapt based on real customer behavior.
A SaaS solution like the one we deliver at Loyco also offers seamless integration with existing systems, such as PMS, POS, and online stores.
The solution becomes a natural part of the customer experience rather than a separate system. This means that guests and customers experience loyalty exactly where it matters most: at the point of purchase, on product pages, or directly in their customer account.
Another major benefit is that the platform is continuously developed.
New features, improvements, and integrations are released automatically without requiring extra time or investment from the company.
This ensures access to ongoing innovation and guarantees that your loyalty program keeps pace with market developments, from mobile optimization to privacy and data flow.
In short, a SaaS platform provides a complete loyalty ecosystem without technical complexity, allowing businesses to focus on the customer journey, communication, and relationships instead of infrastructure.
A SaaS model always comes with some compromise in flexibility and ownership.
You adapt to existing functions and frameworks, and the product roadmap follows the priorities of the provider.
For some large companies, this may feel limiting.
But for most, the question is less about control and more about efficiency.
The key difference isn’t about features, it’s about strategic focus. Technology should be an enabler, not the core of the business. A hotel or retail chain’s purpose is to create memorable experiences, deliver exceptional service, and build lasting relationships, not to become a tech company
By building loyalty on an existing platform, companies free up time and resources to focus on the customer journey, not the code.
A custom-built loyalty program may be the right choice for a few, but it is rarely necessary for most.
For many, SaaS platforms like Loyco are the most cost-efficient and future-ready solution, with continuous innovation, security, and integration included.
In other words, it is not about having the biggest program, but about having the smartest one.
Want to learn more about how you can build loyalty faster and smarter with Loyco? Book a demo with Loyco
Keep the customer you won on discount and bring them back at full price
How to take back your guest data and increase direct revenue this fall
Holiday traffic is over. Here’s how to use your own customer data to boost the fall season.
Summer’s here, and many hotels are about to enter their most hectic and profitable season. In this article, we have gathered our best tips and recommendations for how your hotel can generate activity and revenue this summer.
BookVisit is one of our integrations, and is an effective tool for direct hotel bookings. The integration between Loyco and BookVisit enables loyalty building while reducing costs associated with third-party bookings.
