Loyalty is no longer monogamous.
In today’s travel economy, consumers are loyal to perks, not brands; to flexibility, not status. And in a market where the cost of a mediocre hotel room has soared and the middle seat on a flight offers the same old discomfort, the real battle for loyalty is shifting into the hands of credit card companies and unique experiences.
For over a decade, I’ve studied the intersection of consumer behavior and brand loyalty. As a senior advisor to brands as well as a Forbes contributor focused on Gen Z and Millennial trends, I’ve never seen a moment quite like this—where consumer expectations are rewiring traditional loyalty programs and reshaping the future of travel.
The Loyalty Disruption: From Points to Possibilities
According to a recent Skift Research conversation with Senior Analyst Pranavi Agarwal, loyalty is “in a bad state.” Why? Because today’s consumers—especially Gen Z and Millennials—are deeply brand-agnostic. The data supports this. Skift’s recent survey shows that 60% of U.S. travelers with a travel credit card own a bank-branded card like Chase Sapphire or Amex Platinum, compared to only 21% who own co-branded cards (e.g., Delta-Amex or Marriott-Chase). Another 20% own both.
When 80% of travel cardholders have access to flexible reward systems, loyalty to a single airline or hotel brand becomes optional—if not irrelevant.
“It’s not that I’m monogamous,” I joked during our zoom interview. “It’s polyamory, but with perks.”
And that’s the rub: Loyalty is no longer about exclusive relationships. It’s about utility and access.
Adam Rossbach, President at TFL noted, “We see more and more brands incorporating live events into their loyalty programs. Why? Because modern consumers are collecting experiences. Live events build emotional connections and add uniqueness to modern loyalty programs.”
Credit Card Brands: The Quiet Giants of the Travel Industry
Consider Chase Travel. In just two years, JPMorgan’s proprietary booking platform has emerged as a quiet disruptor, poised to become the third-largest online travel agency in the U.S., behind Booking.com and Expedia. With a built-in customer base of over 150 million Chase cardholders, virtually zero customer acquisition costs, and increasingly direct inventory relationships, the credit card company has done what few banks dared: enter the experience economy.
According to Agarwal, “Chase used to partner with Expedia for inventory. Now, they’re buying their own booking platforms—like CxLoyalty and Frosch Travel—to power Chase Travel independently.”
The implications are massive. If Chase, Capital One, and American Express can own the entire travel journey—from payment to booking to perks—they’re not just credit card companies anymore. They’re full-fledged lifestyle brands.
Loyalty’s New Currency: Experiences And Brand Status
Traditional travel loyalty programs have relied on elite status, upgrades, and blackout dates as levers of differentiation. But what happens when everyone is elite and the perks are gone?
“There are 240 million Marriott Bonvoy members,” I pointed out. “But only limited suites at the Essex House available tonight.”
As loyalty program saturation hits critical mass, brands must pivot from static points systems to experiential differentiation. Hilton’s move to offer connecting rooms as a loyalty perk is a strong example. Marriott Bonvoy’s Eras Tour ticket access created a buzzworthy moment that transcended the hotel category entirely.
This shift aligns with research from Forrester and McKinsey that shows experience-centric loyalty drives more emotional engagement and long-term consumer value than transactional programs.
“Loyalty in hotels and airlines is declining,” Agarwal says. “Consumers just want good service at a good price—and maybe a cool experience thrown in.”
The growing demand for relevance over rewards is pushing brands to rethink how loyalty programs show up in consumers’ lives.
“Our study found that 76% of Americans report spending more money when they’re part of a loyalty program,” said Tal Keshet, VP Loyalty Solutions at Snappy. “It’s a powerful reminder that today’s loyalty isn’t passive. When brands create programs that feel valuable and personalized, they’re not just driving emotional engagement, they’re directly influencing customer spend and lifetime value.”
The Generational Loyalty Split
Millennials and Gen Z aren’t ditching loyalty entirely—they’re redefining it. These generations grew up with on-demand everything, and they expect brands to be as agile and customizable as the apps on their phones.
A recent Phocuswright report underscores this behavior, showing that younger consumers prefer loyalty programs that offer real-time perks, instant redemption, and integrations across multiple lifestyle categories—not just travel.
Skift’s survey echoes this: younger travelers are more likely to book travel through their credit card platforms than traditional online travel agencies. That means they’re prioritizing seamless ecosystems over stand-alone loyalty programs.
The First-Party Data War
At the heart of this loyalty transformation lies a goldmine: first-party data. Credit card companies now own the entire customer journey—from purchase to travel booking to experience delivery. Airlines and hotels, in contrast, often rely on third-party data or siloed systems that limit personalization.
Expect this power shift to drive more M&A activity and deeper integrations between banks, fintech platforms, and lifestyle brands. The endgame? Whoever owns the most data will own the consumer relationship.
And if loyalty becomes a data game, traditional travel brands risk being intermediated by the very credit card companies they once partnered with.
What’s The Playbook For Delta, American, United, Hilton and Marriott Look Like in Tomorrow-Land?
If you’re the CEO of a major travel brand here’s your playbook:
- Invest in personalizing loyalty through small but meaningful perks—like room choice, early check-in, or exclusive event access.
- Expand experiential partnerships—think music festivals, cultural events, or dining experiences that go beyond travel.
- Build API-level integrations with fintech platforms to avoid being disintermediated.
- Rethink your loyalty narrative—from “you’ve earned this” to “you belong here.”
In other words, don’t fight the new loyalty model. Design for it.
Loyalty as Lifestyle
The modern consumer is loyal—to value, convenience, and experience. Sometimes this loyalty is to a brand that helps them achieve more.
And in a travel economy reshaped by inflation, digital acceleration, and generational shifts, it’s the credit card brands that are writing the next chapter of loyalty. They’ve built flexible ecosystems, leveraged massive customer bases, and mastered the art of owning the journey.
For legacy travel brands, the choice is clear: evolve your loyalty experience, or risk being booked out of the equation.