Observations on Travel Loyalty

Travel loyalty news typically falls into three categories. First, major announcements about mergers, joint ventures, or significant deals. Second, in-depth analyses that examine program mechanics and updates to how points are earned and redeemed. Third, tech-focused stories promising that a new technology will “revolutionize,” “redefine,” or “transform” loyalty in some way

This is a solid starting point, but we’ve noticed that certain hidden assumptions often underpin these conversations, yet rarely receive the attention they deserve. Today we want to highlight three in particular: the belief that size matters, the notion that rewards must be exciting and the assumption that consumers are inherently global. 

Before we begin, a quick disclaimer. As a specialized communications agency, we have the advantage of closely observing industry conversations. However, we’re not here to make predictions—we’ll leave that part to you and look forward to hearing your perspective.

Size vs. Substance

There’s a common belief in loyalty programs that bigger is always better—more members and more partnerships seem like the perfect formula for success. But, in marketing, bigger often translates to diluted relevance, resulting in weaker engagement from travelers. 

As we pointed out in a recent article about universal loyalty, “A currency that tries to do everything may ultimately resonate with none, especially in a marketplace crowded with loyalty options.” The real challenge for loyalty programs is finding the right balance between scale and focus to ensure they remain meaningful and of value to members.

Some companies attempt to solve this by forming partnerships with complementary or adjacent businesses. A good example is the joint loyalty program launched by Norwegian and Strawberry Hotels, two travel-related brands operating in the same region with overlapping customer bases. Even so, these programs are not immune to hidden assumptions, particularly around the value and appeal of rewards. 

Rewards That Don’t, Well, Reward

Fancy upgrades, free flights, and other premium benefits are often seen as the cornerstone of loyalty programs, driving sign-ups and engagement. While this holds true in some cases, it can have the opposite effect on less frequent customers who view these rewards as out of reach and choose not to join. 

This isn’t necessarily a problem if the aim is to build loyalty exclusively among frequent travelers. However, as loyalty program objectives evolve, this exclusivity can become a limitation, prompting brands to explore creative partnerships. One such example is the Marriott-Starbucks collaboration, which pairs high-value, infrequent purchases with lower-value, everyday rewards that feel within reach.

By offering rewards that are more attainable and fit into members' daily routines, these programs deliver immediate value without requiring members to accrue significant points or other currency, or undertake extensive travel plans. While this strategy leverages both brands' broad appeal and global footprint, it rests on an assumption that may not hold true: that all travelers think globally.

Thinking Locally in a Global Industry

The travel industry, particularly airlines, has long operated with a global mindset, often applying the same approach to their loyalty programs. Yet, this one-size-fits-all approach often overlooks critical regional differences. A recent post by Oliver Ranson calls this out, noting how disparities between credit card and financial systems in Europe and the United States suggest airlines flying transatlantic routes could benefit from splitting their loyalty programs to better adapt to local conditions on each side of the Atlantic

As Ranson aptly put it, “We may have reached the stage where splitting loyalty programmes by geography is more lucrative than keeping them together as one.” 

The idea is compelling and could be expanded beyond the North Atlantic. Similar differences can also be found at the local level, especially when considering the partnerships and rewards that might be valued in each location and that a more granular approach to loyalty might yield better results. 

As this discussion develops further, we see a clear opportunity: by offering meaningful and localized rewards and partnerships, loyalty programs could really deepen connections with their members rather than relying on one-size-fits-all systems, or alienating some altogether.

New Year, New(ish) Perspectives on Loyalty

 In an industry like travel, technology will always be at the core of driving change, and dynamics like the trading of miles or points with financial institutions and their use beyond travel will remain central to loyalty discussions for years to come. But we believe it’s time for the industry conversations to move beyond buzzwords and well-worn topics to include more nuance and question long-held assumptions. 

This doesn’t mean the assumptions we’ve highlighted are necessarily wrong or irrelevant. But challenging them and considering fresh perspectives can ignite new ideas to innovate and try different approaches. While there’s still a little bit of “newness” to the year, there’s no better time to reexamine these ideas and reevaluate what’s next for loyalty programs.

We’d love to hear your perspective. Share your thoughts, message us, or read our views on universal loyalty.