Hotels.com rewards program hasn't evolved since it first launched.
Yes, effectively up to 10% discount on hotel nights, but only on the backend after 10 nights are reached. Even then, to maximize value, you need to book a "free night" that is the average of the 10 nights 10% savings. Plus you pay tax.
It can and does work for people, and I use it situationally. But here's where other programs have Hotels.com beat:
-Chain hotels which offer "member only" rates below what is available on hotels.com. And because you have to be a "member", hotels.com will not price match.
-Discount codes for 5-15% off periodically available from hotels.com almost always void out ability to earn toward their free nights program
-Most hotels don't recognize hotels.com bookings for any sort of elite benefits the guest may have with the hotel. Even non-elites will receive small benefits like bottled water and basic internet if booked directly through the hotel.
-Cash back portals are available with hotels.com and most of the chain hotels (but a plus to hotels.com when it involves non-chain hotels) And the amount varies over time and portal.