Sykes Holiday Cottages claims to be the first national holiday letting agency to start a loyalty scheme.
More than £1.7 million in loyalty discounts and birthday gifts are due to be offered over the next 12 months.
Customers will be rewarded with discount vouchers, exclusive offers and collectable toy dogs.
With every booking, customers are also entered into a monthly competition, with prizes such as a £1,000 holiday voucher available.
The Sykes Rewards programme follows a trial earlier this year, and aims to recognise loyal customers and drive repeat bookings.
The programme operates on a tiered system, providing travellers with different rewards based on their frequency and volume of bookings.
The loyalty scheme is being launched with an integrated marketing campaign, incorporating CRM, digital and social media.
Those who book a break will be given the choice of money off their next holiday or a toy dog. Customers who regularly stay with the company will receive further discounts and a surprise birthday treat in the post.
Sykes CEO Graham Donoghue said: “We’re always looking at ways we can bring something new to the sector and boost our customer’s experience, and Sykes Rewards is a good example of exactly that.
“The programme puts the customer in control with great rewards and discounts available all year round, including a surprise birthday treat.
“It’s an exciting time in the business’ growth, and initiatives such as this will help us capitalise on a buoyant staycation market and deliver on our long-term ambitions.”
Sykes hosts 1.3 million travellers a year at more than 12,000 properties across the UK and Ireland.