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iSeatz Report: 62% of Consumers Say Travel Loyalty Programs’ User Experience Makes Booking Travel ‘Unnecessarily Difficult’

  • Automatic
  • 31 January 2025
  • 3 minute read
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This article was written by Hospitality Technology. Click here to read the original article

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iSeatz, a technology company powering travel experiences that inspire loyalty, released the third edition of its annual series exploring the dynamics of the U.S. travel loyalty marketplace: The Tipping Point: How U.S. Travel Loyalty is Evolving—A Three-Year Perspective.

This year’s report analyzes year-on-year changes in consumer behavior, program design, and technology adoption, offering insights into the priorities reshaping loyalty programs. Drawing on surveys of 256 loyalty program decision-makers and 4,341 U.S. consumers, it examines the evolving relationship between brands and their members, highlighting opportunities in reward diversification and user experience, among other areas.

Key findings reveal the growing role of AI and personalization in engaging important consumer segments and notable changes in how brands evaluate the performance of their travel rewards programs. This year, iSeatz has also introduced a companion report exploring the Canadian loyalty market: The Tipping Point: Inside Canada’s Changing Loyalty Landscape. 

“This year’s findings and the broader trends we have observed over three years reinforce the central role that travel rewards play in driving loyalty program performance,” Larry Wine, President of iSeatz. “Our survey data makes a compelling case for investing in adaptable, innovative travel technology that meets the expectations of American consumers and enhances the value of brands’ loyalty programs.”

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Growth Continues in the U.S. Travel Rewards Ecosystem

The availability of travel rewards in the U.S. continues to surge as consumer demand for travel remains strong and more brands incorporate travel rewards into their loyalty offerings. For the first time, a majority of American consumers (55%) report belonging to a loyalty program that allows them to earn or redeem points for travel. Additionally, 22% of consumers now say that three to five of their loyalty programs include travel booking capabilities—an 8-point increase compared to 2023.

Brands Revise Their Performance Metrics

Brands are prioritizing metrics that emphasize the long-term impact and profitability of their travel loyalty programs, focusing on key performance indicators that directly link customer satisfaction to sustained growth. This year, 47% of brands, including 79% of North American programs with over 50 million members, say they measure program success through customer lifetime value (CLV), and 43% rely on net promoter score (NPS),, highlighting a shift toward profitability-focused strategies.

Americans Prioritize Value, Find UX Frustrating

For the third consecutive year, consumers have ranked savings on travel as the most valuable benefit of their loyalty programs, with 44% placing it at the top of their priorities. At the same time, 62% report that user experience issues make booking travel through their programs unnecessarily difficult. Despite these frustrations, only 6% of brands view user experience as a challenge, and just 29% are actively addressing the issue or prioritizing platform improvements, showing a glaring disconnect between consumer needs and brand priorities.

Opportunities for Differentiation: AI and Personalization

Incorporating AI tools and presenting more personalized offers may help brands engage critical segments of their customer bases. Nearly half of consumers (47%) say they have used AI to plan travel within their loyalty programs, while 45% of brands say “finding optimal ways to integrate AI into their loyalty strategy” is a top challenge. Personalization carries particular weight among high-value groups: 84% of luxury program members value tailored offers, while 76% of households with children prefer personalized options, compared to 54% without children.

“Survey data shows that brands must focus on resolving long-standing user experience issues, expand their reward offerings, and adopt better travel technology to meet their members’ needs,” ,adds Wine. “Regardless of sector, loyalty programs that address these areas will be far better positioned to drive stronger engagement and sustained growth, and importantly, differentiate their proposition.”

The 2025 U.S. Tipping Point report can be downloaded here; a companion report examining the Canadian loyalty market is also available: The Tipping Point: Inside Canada’s Changing Loyalty Landscape.

Please click here to access the full original article.

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