Loyalty programs in the travel industry have long revolved around points and status, but as consumer behaviors shift to credit card travel rewards, brands are recognizing the need for innovation to increase access and usage to brand rewards and credit card travel rewards. Sean O’Neill, a veteran at Skift, shared insights on where loyalty is headed, the role of experiential rewards, and the challenges companies face in implementing change.
From Credit Card Travel Rewards to Memories: Rethinking Loyalty
While traditional loyalty programs have relied on points-based incentives, brands like Marriott are realizing that customers aren’t staying loyal because of the points alone.
“Since taking over Marriott’s program, Peggy Rowe has been focused on understanding what really keeps members engaged. And it’s not the points—it’s the memories,” O’Neill noted.
This shift is pushing brands to move beyond the standard rewards of upgrades and free nights, especially as the competition for elite benefits has intensified. With millions of members vying for a limited number of first-class airline seats or premium hotel suites, the current system isn’t sustainable. Instead, travel brands are looking toward exclusive, personalized experiences to drive engagement.
Maegan O’Neill, VP Strategy & Insights at Bond notes, “Both airline and hotel loyalty programs have shifted strategies. Some airlines now reward high spenders more than frequent, lower-cost travelers, and hotel chains have adjusted dynamic pricing models that make point redemption less straightforward. These changes can make it harder for many consumers to redeem rewards at the value they once enjoyed. As a result, we have seen members consolidate their activity to programs that they have confidence will still deliver value and experience as we see a slight drop in the number of programs consumers are active in with Travel programs YOY whereas all other verticals have grown at increased active rates of 5-8%.” (The Bond Loyalty Report, 2024).
Experiential Travel Rewards Accessed Thru Credit Card Travel Rewards
Companies like Marriott and Hilton are expanding their offerings with experiential travel rewards that tap into the emotional connectiontravelers have with their trips. Marriott Bonvoy, for instance, introduced exclusive opportunities like programming the Bellagio fountains for a loved one’s surprise, while Hilton offered a private Grammy-nominated artist showcase for its members.
“These are things that money alone can’t buy,” said O’Neill. “And that’s what makes them so powerful.”
This move towards experiences extends beyond just concerts or special events. Partnerships between hospitality and entertainment brands could open new doors for loyalty members—imagine using Marriott points to score exclusive access to a sold-out Las Vegas show or redeeming airline miles for backstage passes.
Credit Card Travel Reward Availability: Small Wins Matter
One of the biggest frustrations in loyalty programs is the oversaturation of elite status. With long waitlists for upgrades and limited availability of high-value rewards, members often feel left out.
To counter this, some brands are focusing on smaller, more frequent rewards. Marriott, for example, has experimented with allowing members to use points for everyday perks like a free Starbucks coffee.
“The goal is to create more touchpoints for engagement, rather than making members feel like they’re chasing an unattainable prize,” O’Neill explained.
“While membership in loyalty programs remains high, actual point redemption can be less frequent or less satisfying due to higher redemption thresholds and diluted rewards. 37% of Americans say they are redeeming their points in increments to reduce the total cost of purchases rather than saving for a full redemption”, Maegan O’Neill adds.
Keith Laxman, an expert at Tickets For Less, noted, “Most loyalty platforms expect members to accumulate tens of thousands of points to access exclusive experiences, which can leave the average member feeling disconnected and disengaged when they don’t have enough points.”
Split Tender: The Future of Redemptions Is Increased Access To Credit Card Travel Rewards
As experiential rewards gain popularity, the ability to blend cash and points may become a defining feature of next-gen loyalty programs. In some international markets, airlines like Cathay Pacific have already introduced “Miles Plus Cash” options, allowing travelers to pay for flights with a combination of points and money.
While the U.S. has been slower to adopt this approach, O’Neill believes it’s on the horizon. “Brands know consumers want this. The challenge isn’t demand—it’s infrastructure. Many hotel and airline systems simply aren’t equipped to handle these kinds of transactions yet. But with major cloud migrations and data unification projects underway, we’ll see more of this soon.”
Credit Card Travel Rewards Now Compete With Branded Reward Programs
As travel brands innovate, credit card companies are emerging as major players in the loyalty space. With co-branded partnerships, exclusive lounges, and points that can be used flexibly across multiple travel providers, credit card issuers are positioning themselves as the ultimate gatekeepers of rewards.
“Some travelers now prefer to bank all their points with their credit card issuer rather than with a specific airline or hotel,” said O’Neill. “Why lock yourself into one brand’s ecosystem when you can have flexibility?”
This trend is particularly strong among younger travelers who value choice and adaptability over long-term brand loyalty. With credit card companies offering rewards that span multiple categories—travel, dining, shopping, and entertainment—they may ultimately redefine what loyalty means.
Subscription-Based Loyalty: The Next Evolution
Another major shift in loyalty is the rise of subscription-based programs. Enismore, a lifestyle hospitality company, has pioneered a model where members pay an annual fee (around $200) in exchange for guaranteed perks such as discounts, first-choice room selection, and other exclusive benefits—without the hassle of accumulating points.
“This is an intriguing alternative,” said O’Neill. “It ensures immediate value without the uncertainty of whether you’ll ever redeem your points for something meaningful.”
5 Key Takeaways & The Future Of Loyalty
1. Experiential Rewards Are the Future – Brands are shifting from points-based incentives to exclusive experiences that create emotional connections.
2. More Accessible Rewards – Instead of chasing elusive upgrades, members will have access to smaller, more frequent perks.
3. Cash-Plus-Points Will Become Commonplace – The ability to blend payment methods for flights, hotels, and experiences will grow.
4. Credit Cards Are Becoming More Powerful – Flexible points and exclusive partnerships are making them an attractive alternative to traditional loyalty programs.
5. Subscription Models Could Redefine Loyalty – Some brands are moving toward paid memberships that guarantee benefits rather than relying on tiered status.
As travel brands work through their digital transformations, the next few years will bring major changes to how consumers engage with credit card travel reward programs. Whether through personalization, increased access, or more choice in rewards, the goal is clear: keep travelers engaged by offering them more than just another slice of the pie.