The landscape of travel loyalty is continuously evolving, with hotel and airline loyalty programs reaching record numbers of members. For example, Marriott Bonvoy has over 200 million members, while Hilton’s membership has increased by 110 percent over the past five years. Despite the growth in membership, travelers are becoming less loyal to one specific program and are looking for more discounts and personalized experiences that cater to their individual preferences for each trip.
According to Damien Pfirsch, chief commercial officer of Agoda and head of Rocket Travel by Agoda, there is an opportunity for brands to enhance their loyalty programs to truly increase customer loyalty rather than simply becoming another element for comparison. Rocket Travel by Agoda partners with over 300 brands worldwide to develop product-driven partnerships that create long-term value for both parties. Their trend report, “Dive Into 2025: The Year of Personalization and Flexibility,” highlights key areas for travel companies to focus on in order to strengthen their loyalty programs in the future.
Personalization, localization, and the use of AI and machine learning are three important touchstones of a modernized loyalty program. Travelers now expect a more personalized experience from their loyalty programs, not only in terms of travel but also in how they search, book, and redeem points. By leveraging the personal preferences and data shared within loyalty program ecosystems, brands can deliver a more tailored customer journey that meets individual needs and desires.
In order to stay ahead in the competitive global travel landscape, businesses need to tap into growing markets such as India, Japan, and China and adapt their offerings and communication strategies based on the unique dynamics of each market. Localization, including multilingual communication and understanding cultural habits, payment preferences, and search behaviors, will be crucial for brands to connect with new customer cohorts on a large scale. By localizing their marketing and experiences, companies can reach a wider audience and drive loyalty among international customers.
The strategic use of AI and machine learning will be vital in driving customer loyalty and business success in 2025 and beyond. AI can help identify market trends, tailor content to specific customer needs, increase efficiency, and offer personalized self-service options on loyalty platforms. By leveraging AI technology, travel companies can improve their customer interactions, understand customer preferences better, and ultimately drive loyalty and engagement.
As travel companies prepare for the challenges and opportunities of 2025, it is essential for leaders to embrace a culture of experimentation and innovation and invest in the necessary platform and technology infrastructure to support their loyalty programs. While partnering with external experts can be beneficial, it is crucial for organizations to foster a culture of change and innovation internally in order to maximize the results of their loyalty programs. By staying ahead of industry trends and embracing new technologies, travel companies can position themselves for success in the ever-evolving landscape of travel loyalty.
