Tiered reward levels are the norm for hotel loyalty programs.Reward tiers are considered effective because they build a sense of identity within each tier that can lead to commitment to the brand(McCall and Voorhees, 2010). Tiers also provide feelings of status as members compare themselves to other levels (Drèze and Nunes,2009). Members of elite tiers feel superior,particularly iftheir numbers are small, thus increasing exclusivity. Research suggests that a 3-tier system will maximize member satisfaction, although the study did not address loyalty (Drèze and Nunes, 2009). The study involved hypothetical scenarios judged by students, so the applicability to actual reward programs is tentative. Nonetheless, an examination of existing hotel programs suggests that some may be operating at suboptimal levels. Of the thirteen major chains, seven have a 4-tier structure, five have a 3-tier structure, and one has two tier levels