Loyalty & Reward Co‘s American team attended Loyalty Summit 2024 (as Gold Sponsors), where industry leaders gathered to explore the evolving landscape of loyalty programs within travel, hospitality, and airlines.

The discussions covered coalition models, technology, sustainability, travel cards, partnerships, and how to maximize customer lifetime value (CLV). Attending the event provided invaluable insights into the evolving dynamics of customer loyalty across the travel, hospitality, and airline industries, reaffirming the need for both innovation and strategic alignment in an increasingly complex landscape.

While Loyalty Summit 2024 was primarily focused on the travel, hospitality, and airline sectors, it also offered a valuable opportunity for our team to reassess these insights from an external perspective—across other industries we work in. This broader approach is something we always prioritize in our own loyalty consulting work, allowing us to deliver more well-rounded, innovative strategies.

Below are 9 key takeaways from the event, offering practical insights for loyalty program operators and practitioners.

1. The Global Divergence in Loyalty Models

A prominent theme which arose in various conversations was the contrast between what we might call Collaborative Loyalty Networks (often referred to as “coalition programs”), versus Direct Loyalty Partnerships (commonly known as proprietary or brand-centric ecosystems), which tend to dominate the U.S. market.

Overseas, particularly in regions like Europe, Australia and New Zealand, Collaborative Loyalty Networks thrive, where multiple brands join forces to create a shared loyalty experience. In the U.S., brands tend to favor Direct Loyalty Partnerships, working independently or through exclusive partnerships, such as co-branded credit cards, to retain control over customer loyalty and ecosystems.

Latin America represents a middle ground, which is potentially influenced by its proximity to North America, cultural history and payment infrastructure. The region also tends to have fewer dominant players in key industries.

Takeaway: When expanding into new regions, assess whether a Collaborative Loyalty Network or Direct Loyalty Partnership best suits your brand’s needs and aligns with customer preferences in the local market.

2. Airlines Shift to Revenue-Based Models

Most airlines have transitioned from distance-based rewards to revenue-based models. This evolution rewards travelers based on their financial contributions rather than the miles flown. There are inherent benefits to shifting to a revenue-based model, but considering the inverse perspective is still important.

While revenue-based models benefit higher-spending customers, it can create challenges for frequent travelers who do not necessarily spend as much.

Although revenue-based models are more efficient for rewarding high-value customers, they may inadvertently alienate lower-tier or price-sensitive travelers who were better served under a mile-based system.

Takeaway: Revenue-based models align rewards with profitability, but brands should carefully assess the long-term engagement of frequent but lower-spending customers to avoid losing loyalty from a broader audience. Find the balance in your reward mix for different segments.

3. Adtech and Loyalty: A Powerful but Challenging Intersection

At the conference, United Airlines unveiled the company was pushing the boundaries of loyalty and advertising with its new Kinective Media platform, which connects customers with personalized, real-time ads, content, and offers based on their travel behavior. This initiative leverages United’s expansive data from MileagePlus members to create tailored advertising across channels like their mobile app and inflight entertainment screens.

Whilst the actual conversation focused purely on the airlines new strategic push, Loyalty & Reward Co believe that United’s move reflects a growing trend of integrating loyalty data into ad-tech to enhance customer engagement and create new revenue streams.

The convergence of Adtech and Loyalty is evident in initiatives from other organizations. For example, Chase expanded into ad-tech through its acquisition of Figg, now rebranded as Chase Media Solutions, providing personalized ad placements based on credit card purchase behavior.

Takeaway: Large organizations, including Airlines and Financial Institutions, are increasingly merging loyalty and ad-tech to create personalized, real-time advertising opportunities that drive both engagement and revenue, marking a new era of loyalty and rewards programs.

4. Technology: The Enabler and the Obstacle

The complexity of loyalty technology was a recurring topic. Companies today have access to more vendor options and tech capabilities than ever before, yet navigating these choices can be overwhelming (which is a core component of how our loyalty consultants help clients navigate through vendor selection and assessment). While technology has the potential to significantly enhance loyalty programs, it often becomes an obstacle when not managed strategically.

For example, Lifemiles emphasized the importance of having a clear strategic focus to avoid getting lost in the sea of available options. Similarly, Air New Zealand’s experience with Airpoints™ illustrated how lengthy platform migrations can delay progress, underscoring that while technology promises innovation, the implementation process can be lengthy and challenging.

However, the barriers are not always technical—issues like data quality and internal resistance often present the biggest hurdles, making cross-functional collaboration critical to success.

Takeaway: Technology alone is not the solution. Focus on your strategy, prioritize use cases, and ensure data quality to maximize the potential of your loyalty technology platforms. Additionally, overcoming organizational resistance through agility and cross-functional collaboration is key to executing loyalty programs effectively – which has become an increasingly core component of how Loyalty & Reward Co help clients execute on a loyalty strategy.

5. Sustainability: Still a Superficial Effort in Loyalty Programs

Sustainability in loyalty remains a hot topic, but many loyalty programs are scratching the surface. Examples raised included the Qantas Green Tier, a sustainability initiative that rewards members for completing environmentally friendly actions, such as offsetting flight emissions or donating to green causes. Once achieved on an annual basis, members can choose rewards between 10,000 Qantas Points or 50 Status Credits, aligning eco-conscious behaviors with loyalty benefits and resetting each year.

While some businesses have made strides, commentators highlighted that sustainability efforts often feel like add-ons rather than fully integrated strategies. This creates a disconnect between consumer expectations and program execution. Customers want to see genuine environmental efforts, not just symbolic gestures.

Loyalty & Reward Co have previously discussed how fast food/quick service restaurant, Grill’d, provides a more integrated example with their Relish loyalty program, with their 8 and Donate feature. After eight visits, members can choose to donate a meal to someone in need, or enjoy a free burger themselves. If the donation option is selected, Grill’d donates the value of the burger to feed someone doing it tough. This feature reinforces Grill’d’s brand values of social responsibility, making sustainability and giving back a central part of the loyalty experience rather than a superficial gesture.

Takeaway: When it is a genuine effort and aligns with the brand, sustainability should be an integrated part of your loyalty program, not just an afterthought, to build real brand credibility and trust.

6. Travel Cards: Navigating ‘Frenemy’ Relationships

Co-branded travel cards remain one of the most profitable components of loyalty programs in the U.S., generating significant revenue for both airlines and banks. The dynamic between airlines and banks can often feel like a ‘frenemy’ relationship, with each trying to maximize value. Airlines like Alaska Air have launched new products to enable the business to target aspiring customer segments (which are not the upper elites) with no-fee or mid-tier options to unlock more opportunities to cater to broader audiences.

However, a notable, potential challenge is emerging in the U.S. with the proposed discussions around the removal or reduction of interchange fees (interchange fees, or “swipe fees,” are charges that merchants pay to card-issuing banks each time a customer uses a credit or debit card, covering processing costs and transaction risks).

If passed, these changes could significantly alter the profitability of co-branded credit cards, as these fees are a major revenue driver for banks and airline partners alike. Similar regulations have already been implemented in regions like the European Union, Australia, and New Zealand, where the cap on interchange fees has reduced the profitability of such partnerships and shifted the focus toward other loyalty initiatives. Any U.S. program which relies on these fees may need to rethink their value propositions if this regulatory change comes into effect, potentially reducing lucrative benefits tied to these cards.

Takeaway: Ensure that co-branded card products appeal to a broad customer base, balancing aspirational rewards with everyday value. Additionally, brands should stay ahead of potential regulatory changes, such as the removal of interchange fees, and consider diversifying loyalty revenue streams to mitigate future risks.

Proposed reductions to these fees could lead to decreased funding for loyalty rewards, potentially resulting in fewer benefits for cardholders and increased costs for consumers, while also allowing merchants to invest more directly in their own loyalty programs.

7. Reinventing Partnerships: Beyond Traditional Models

A key takeaway from Loyalty Summit 2024 was the importance of innovative, purpose-driven partnerships. While traditional bank-airline-hotel collaborations remain a staple, companies are increasingly moving beyond these models to engage new markets and fill service gaps. For instance, Wyndham Hotels & Resorts partnership with DoorDash addresses a gap in their hotels that do not have a traditional food offering, while Bilt’s ‘Rent Day’ promotions and its collaboration with Alaska Air creatively link rent rewards with travel, driving engagement through loyalty integration. These opportunities open up new approaches to deliver value, acquire new customers, and connect audiences between the complementary brands.

Similarly, Viva Aerobus has been engaging younger and emerging migrant segments through partnerships that align more closely with the needs of these demographics, reflecting the growing importance of customizing loyalty offerings.

Another innovative approach comes from StatusMatch, which allows frequent travelers to transfer elite status across airlines. This has proven particularly effective for high-value customer acquisition, with programs like Flying Blue (Air France-KLM) leveraging such tools to attract and retain elite customers, ensuring consistency in rewards across competitive brands.

Looking ahead, with the complexity of modern partnerships, artificial intelligence could soon play a pivotal role in helping brands identify the best partners, analyze customer data, and optimize collaborations for maximum effectiveness. AI may be the key to resolving service gaps and creating more impactful, data-driven partnerships.

Takeaway: Use partnerships strategically to enhance your loyalty program by offering unique benefits that resonate with your customers and align with your brand.

8. Casinos: Masters of Segmentation

Casinos have notoriously excelled in segmentation, offering personalized, high-touch experiences through tailored rewards and curated hospitality. In a panel discussion, MGM discussed its exclusive long-term strategic collaboration with Marriott Bonvoy, which allows customers to unlock reciprocal benefits, including reciprocal elite recognition, reciprocal points earning and redemption opportunities, plus points transfers between programs – creating a cohesive loyalty experience across industries.

However, an interesting takeaway was as the industry moves toward digital platforms, like with MGM’s BetMGM, segmentation relies more on data analytics and AI to drive targeted offers based on gaming behavior. This approach works well for precise targeting but risks becoming too transactional. Loyalty & Reward Co believe that for many digital-only or digital-first casino brands, without the in-person touchpoints, they may face a similar challenge—focusing heavily on behavioral data and missing the emotional connections that foster deeper loyalty. There needs to be a stronger effort to develop engagement and reward strategies which genuinely cater to the unique nuances of these businesses, and their end users.

Notably, these nuances are not just limited to gaming; other digital and eCommerce brands must also consider how to balance data-driven insights with efforts to build emotional loyalty. Personalized, human-centered experiences and community-building can help digital brands avoid being seen as purely transactional and instead create long-term engagement and brand attachment.

Takeaway: Across industries, digital brands must complement data-driven segmentation with emotional engagement strategies. By creating meaningful connections beyond transactions, they can foster deeper loyalty and long-term customer relationships.

9. Maximizing CLV: The Critical Role of Redemption Opportunities

An interesting insight emerged from discussions around redemption strategies and their impact on customer lifetime value (CLV). Research shows that reinforcing redemption opportunities—especially during ‘loyalty success moments’—can significantly boost CLV. We at Loyalty & Reward Co often refer to these as ‘loyalty loops’, where the positive experience of redeeming rewards reinforces a customer’s desire to stay engaged with the program, creating a cycle of repeated interactions and loyalty.

Secondly, many organizations over-focus on top-tier or elite customers to drive incremental CLV, which can be counterproductive. While these high-value segments are crucial, focusing solely on them may not be the most effective strategy. Instead, programs should pay more attention to those customers who sit just below any defined value tiers or segments (whether overtly or covertly published). These are the customers who are often on the verge of being bumped up to a higher ‘tier’ and are particularly responsive to loyalty incentives. Again, reinforcing loyalty loops for these segments will likely prove most effective for promotional budget efficiency.

Our loyalty consultants and data analysts help brands identify and nurture these segments, maximizing engagement and value. These customers are often more likely to respond to well-timed rewards and incentives because they see the potential to reach the next level of benefits. By targeting these groups strategically, brands can unlock greater incremental value without cannibalizing actions that would have happened naturally, creating a more balanced and effective loyalty program.

Takeaway: Focus on optimizing redemption opportunities for all customer segments, particularly those on the cusp of reaching higher ‘tiers’ or value-based segments, to boost CLV.

Closing Remarks of Loyalty Summit 2024

Loyalty Summit 2024 highlighted the complex dynamics driving the future of loyalty programs in travel, hospitality, and airlines – but, also how the wider loyalty industry is evolving.

Practitioners need to balance innovation with strategy. Whether it is leveraging technology effectively, creating meaningful partnerships, or integrating sustainability more deeply into programs, the goal remains the same: to build loyalty that not only retains but drives long-term engagement and delivers return-on-investment.

Unlocking new loyalty opportunities

As loyalty consultants, we see opportunities for brands to move beyond simple program concepts and really focus on turning loyalty and rewards programs into profit centers. Focusing on untapped customer segments and leveraging innovations to drive more than just revenue—it can transform your loyalty strategy entirely. The question for brands is: How can these strategies be applied specifically to your business?

If you are curious about how to unlock these opportunities, contact us for a free consultation to understand how we can help guide you through the process and find tailored solutions that suit your brand’s goals and market conditions.