Overview

A recent report from Phocuswright highlights that 84% of leisure travelers engaged in “gaming” loyalty programs over the last year, emphasizing the importance of value and flexibility over strict brand loyalty.

The findings presented in the research show that while these loyalty schemes are integral to traveler planning, they do not necessarily lead to consistent brand loyalty. Instead, travelers are learning to navigate the rewards landscape strategically, prioritizing benefits over brand allegiance.

Key Findings

• One in five airline loyalty members took unnecessary flights to maintain elite status.
• One in four hotel loyalty members opted for properties based on status rather than preference.
• 39% of travelers used gift cards to earn loyalty points, while 27% opened credit cards for the bonuses, and 16% engaged in manufactured spending by purchasing for others.

Despite high engagement rates, brand consistency remains a challenge, with 57-68% of travelers booking outside their preferred brands when better options arise. According to Madeline List, “True loyalty is the result of consistently delivering value, reliable experiences, and fair pricing over time.”

Poor economic conditions are also pushing travelers to use points for more affordable trips. A generational shift can be observed, with younger travelers—especially Gen Z and millennials—favoring diversity and novelty over brand loyalty.

The findings indicate that while loyalty programs can enhance brand affinity, they must be bolstered by robust product quality and fair pricing to genuinely influence consumer behavior.