Traditional travel loyalty program perks, such as points and elite status, are becoming less influential in maximizing a guest’s experience. Travelers increasingly prefer personalized experiences and real-time recognition when booking travel versus traditional travel rewards for loyalty, such as points and elite status, which are becoming more challenging to redeem and enhance the trip quality.
A tourist watches waves crash onto a reef protecting the lagoon and a resort on Rarotonga, the largest island of the Cook Islands on June 12, 2025. (Photo by William WEST / AFP) (Photo by WILLIAM WEST/AFP via Getty Images)
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Personalized hotel stays
Hotel stays are a competitive business as travelers have numerous options. Instead of narrowing down where to stay by traditional metrics like cost or loyalty program membership, many guests also factor in personalization.
Hospitality management provider Mews recently polled 2,000 travelers about their preferences and how hoteliers can win their loyalty. Overall, the survey reveals that 68% of respondents favor personalized experiences.
The percentages are higher among two particular traveler backgrounds:
- Gen Z: With the highest demand of all age groups, 83% of Gen Z travelers would remain loyal to brands offering superior personalization benefits. Additionally, 89% say that personalized amenities increase their likelihood of returning.
- Affluent travelers: 83% of respondents earning from $150,000 say personalized amenities boost loyalty. Additionally, 80% of those who earn over $200,000 are the most likely to seek more from hotel loyalty programs, which play a pivotal role in influencing lodging decisions.
“The era of transactional loyalty is over,” says Richard Valtr, Founder of Mews. “Today’s travelers want genuine recognition – the kind that comes from truly understanding who your customer is, why they have come and what they aim to achieve during their trips. More personalized experiences, less loyalty tiers.”
This study also finds that 82% of responding travelers are frustrated with traditional point programs. Moreover, only 24% view hotel rewards as the most valuable based on their lifestyle, with grocery store rewards (55%), credit card points (50%), gas rewards (39%), and airline miles (25%) placing higher.
The most prominent hotel rewards barriers include:
- Points expiring too quickly (28%)
- Blackout dates (24%)
- Difficulty earning meaningful rewards (23%)
Integrating AI technology enables hospitality providers to efficiently personalize experiences, making each guest feel like a VIP with every stay.
Excellent customer service is also crucial, with 62% of travelers citing poor service quality and communication as the top reason for abandoning a brand. This hindrance surpasses issues with broken or faulty facilities, room problems, and a sudden halt in amenities.
Airline rewards
Jetsetters are increasingly opting for airlines based on convenience or additional perks, rather than concentrating solely on accumulating frequent flyer miles with a specific alliance.
For instance, many budget-conscious travelers prefer to fly Southwest Airlines due to its competitive fare pricing and its (recently discontinued) “two bags fly for free.”
Delta Air Lines provides complimentary onboard Wi-Fi to all SkyMiles members on equipped aircraft. The airline also offers in-flight experiences, such as its free Sky Hopper game, to earn entries for monthly prizes.
Popular airline loyalty initiatives also include personalizing customer service interactions through AI chatbots, tailored promotions and challenges, and subscription memberships.
Nevertheless, alliance loyalty remains significant for frequent flyers, as they can earn elite airline status or redeem multiple award flights each year. Programs are personalizing milestone award choices.
What do travelers want more than loyalty travel rewards?
Preferences for travel rewards are shifting as guests increasingly prefer personalized perks over the uniform approach that older generations typically favor. Hotels and airlines that challenge the status quo by treating each customer as unique and highly valued stand to benefit the most from this changing trend.
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