A recent trend report published by Rocket Travel by Agoda provides practical strategies to help travel brands go beyond merely boosting membership figures, focusing on building distinctive programs that foster lasting customer loyalty.
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GLOThe travel loyalty landscape is evolving rapidly, with hotel and airline programs reaching record levels of engagement. Marriott Bonvoy now boasts over 200 million members, a 60% increase in the past five years, while Hilton’s membership has grown by an impressive 110% over the same period. In the aviation sector, some airline loyalty programs are valued at over $24 billion.
Changing Consumer Expectations
Despite the growth in membership, travelers are shifting their focus. While loyalty programs thrive on a macro level, customers increasingly seek personalized discounts and offers that cater to their specific travel needs. Many travelers now explore multiple programs rather than committing to just one.
“There’s a unique opportunity for brands to ensure their loyalty programs genuinely foster loyalty, rather than becoming just another factor in comparison shopping,” said Damien Pfirsch, Chief Commercial Officer of Agoda and head of Rocket Travel by Agoda. “The challenge is delivering personalized value propositions on a global scale.”
Rocket Travel by Agoda partners with over 300 brands worldwide to create tailored loyalty solutions, balancing market-wide growth with micro-level targeting. Their trend report, Dive Into 2025: The Year of Personalization and Flexibility, outlines key strategies for strengthening loyalty programs.
Personalization: A Modern Imperative
Travelers increasingly expect personalized services from loyalty programs. Traditional “earn and burn” models, focused solely on accruing and redeeming points, no longer suffice. Customers now seek tailored recommendations and seamless experiences throughout their journey, from booking to payment and redemption.
Social media and other channels offer inspiration but often lack direct paths to actionable travel experiences. Loyalty programs, with their wealth of user data, are uniquely positioned to fill this gap by delivering relevant, timely offers and exclusive opportunities.
“Loyalty programs can inspire travelers by highlighting trends, offering exclusive access, and providing the right deals at the right time,” Pfirsch explained. “It’s not just about a great hotel in the Bahamas but creating a connection to something meaningful and unique that they wouldn’t access without your brand.”
Global Reach, Local Focus
Rocket Travel by Agoda emphasizes the importance of localized strategies to thrive in growing markets like India, Japan, and China. These regions have distinct customer preferences and behaviors, requiring loyalty programs to adapt accordingly.
“To scale globally, travel companies must localize their offerings, communication, and engagement for each market,” Pfirsch said. Multilingual communication, understanding cultural habits, and aligning with local payment methods and search behaviors are key to driving loyalty internationally.
Leveraging AI and Machine Learning
AI and machine learning are pivotal for enhancing loyalty programs. These technologies can identify trends, create targeted content, and optimize customer experiences in real time.
“AI can help surface relevant reviews, tailor offers to individual needs, and promote efficient self-service on loyalty platforms,” Pfirsch noted. By simplifying customer interactions, AI enables users to address their needs independently, streamlining the experience.
Preparing for 2025 and Beyond
As companies look ahead, Pfirsch highlighted the importance of fostering innovation and agility within their organizations.
“The biggest challenges are cultivating a culture of experimentation and investing in the underlying technology,” he said. “These steps enable gradual improvements, allowing brands to identify what resonates with customers and what doesn’t.”
Pfirsch cautioned against outsourcing these efforts without addressing internal cultural change. “Simply bringing in a partner won’t yield the best results without a commitment to innovation within the organization,” he concluded.
By embracing personalization, localization, and advanced technologies, travel brands can position themselves to meet the demands of the evolving loyalty landscape in 2025 and beyond.
Source: rocket travel by agoda (Click here to download report)
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