As customer expectations rapidly evolve, their perception of traditional loyalty models evolves with it. As a result, many loyalty programs face a widening "value gap" between what members want and what brands deliver, according to a new report co-developed by Skift and Rocket Travel by Agoda - the strategic partnerships arm of digital travel platform Agoda.
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GLOThe new report by Rocket Travel by Agoda and Skift reveals framework for brands to close the loyalty value gap with seamless redemptions and cash spend
As customer expectations rapidly evolve, their perception of traditional loyalty models evolves with it. As a result, many loyalty programs face a widening “value gap” between what members want and what brands deliver, according to a new report co-developed by Skift and Rocket Travel by Agoda – the strategic partnerships arm of digital travel platform Agoda.
Titled ‘The Loyalty Value Playbook: Redemption Experience and Cash Spend as the New Benchmarks for Customer Growth‘, the report offers a practical blueprint to close the loyalty gap. With 77% of consumers now quicker to drop a program than they were three years ago, this underscores how consumers are increasingly prioritizing loyalty on platforms that deliver value through clarity, flexibility, and relevance throughout the customer journey.
Rocket Travel by Agoda has launched a guide to help companies transform failing loyalty programs based on clear metrics. The guide includes six capabilities that focus on getting the most out of loyalty programs by focusing on best practice in redemption, usability, transparency, and exclusivity:
- Flexible Commerce Infrastructure: Streamline checkouts with real-time point balances, instant confirmations, and points-plus-cash options to match modern e-commerce standards.
- Data and Personalization Engine: Harness guest behavior and AI-driven insights to deliver tailored recommendations, increasing redemption value and booking conversions.
- Partner and Inventory Strategy: Expand high-quality room and experience inventory with competitive pricing and exclusive perks like early check-in or late checkout.
- Marketing Technology and Customer Journeys: Minimize point breakage with lifecycle messaging and clear value explanations to spur repeat cash bookings.
- Governance and Controls: Enforce fair dynamic pricing with transparent rules and advance notices to sustain guest trust and reduce complaints.
- Cross-Functional Ways of Working: Unite loyalty, operations, and data teams to optimize metrics like repeat cash bookings and guest lifetime value.
Rocket Travel By Agoda developed the guide to help companies understand why traditional loyalty programs may need to evolve to meet modern guest expectations, risking lost revenue for brands. For instance, according to Antavo’s Global Customer Loyalty Report, only around 50% of loyalty points earned are redeemed, while in a report by Cordial, 43% of customers stopped participating because the rewards took too long to earn.
The playbook is grounded in research, case studies, and interviews with industry leaders such as Flying Blue, Citigroup, and Southwest Airlines. It shows how well-crafted loyalty programs drive repeat bookings and cash spend, strengthening guest relationships. By leveraging zero-friction experiences and AI-driven personalization, it empowers travel brands spanning airlines, hotels, and beyond to meet modern traveler demands, in line with Agoda’s commitment to making travel more accessible and rewarding.
“The challenge and opportunity for loyalty programs is that expectations haven’t shifted from one set of benefits to another, they have expanded. Travelers still want the traditional perks, but they also expect more, making loyalty harder to manage,” says Damien Pfirsch, Chief Commercial Officer and Head of Rocket Travel at Agoda. “This report equips travel brands with a playbook to rebuild guest trust through clear, flexible, and relevant loyalty experiences, boosting both point redemptions and cash bookings.”
“We’re seeing a clear shift toward flexible, accessible, and personalized loyalty. Cardmembers are looking for programs that deliver value in everyday life as well as during larger travel moments,” says Chris Besendorfer, Managing Director and Head of Citi Travel & Rewards at Citigroup. “The ability to redeem points for travel, experiences, or essentials across multiple categories has never been more important. Customers want choice and ease, and they expect their loyalty programs to reflect how they live and spend.”
“Always start with the customer. Ask what they value, and then consider how partnerships can extend that value beyond the core offering into lifestyle benefits, retail, or other parts of the travel journey, added Jonathan Clarkson, Vice President and Chief Product Officer at Southwest Airlines. Brands that do this effectively will be rewarded with greater loyalty because they seek to be relevant in more ways.”
Rocket Travel by Agoda leverages its extensive industry expertise to guide partners in crafting loyalty programs that resonate with their audiences, build loyalty, and support sustainable growth. With a clear focus on personalized and flexible offerings, brands can build lasting customer relationships and elevate their market presence. Download the full report here.
SOURCE Agoda
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