According to a new report from Rocket Travel by Agoda, travel-based loyalty programmes continue to climb in popularity thanks to the sector’s ability to build loyalty through highly personalised customer experiences.
Rocket Travel by Agoda’s 2025 Trend Report reveals that the top five airline loyalty programmes alone saw a 7.75 per cent average growth in valuation from 2020 to 2023 while some travel loyalty programmes in the financial services sector have tripled in value since 2019.
“Unlike other industries, travel is something that people are emotionally invested in,” said Damien Pfirsch, head of Rocket Travel by Agoda, the strategic partnerships arm of Agoda. “By offering real-world experiences that customers really care about, it’s easier for brands to turn transactional relationships into long-term partnerships with their customers.”
While the report noted a dip in levels of customer satisfaction for many customer loyalty programmes post-Covid because of reductions in benefits, there was now an opportunity to reignite customer enthusiasm through more engaging online experiences. For brands using Rocket Travel by Agoda solutions, some partners have seen 40 per cent of loyalty users book more than once.
“Digital travel platforms are uniquely engineered to let customers design their own, highly personalised experience thanks to great search capabilities and a wide selection of destinations and accommodations – all at value-driven prices,” he said. “The technology is also highly customisable, so brands are able to offer their loyalty customers an enjoyable experience with all the look and feel of their main site.”
Other benefits include the ability to search based on distance to key points of interest, find refundable or flexible travel options, filters based on pricing data and localised languages. Meanwhile interactive tools proactively recommend options to the customer based on their preferences – like deep discounts for price-sensitive travel planners or options with high earning potential for points-hungry members – drive increased repeat rate and added long-term value from each customer.
“And these personalisation capabilities are only going to get stronger as the industry embraces AI,” Pfirsch noted.
The report highlighted that travel-based loyalty programmes tend to appeal to higher spending customers, presenting businesses with the opportunity to not only boost levels of customer engagement but also benefit from higher customer lifetime values.
Elsewhere the report explores how travel-based loyalty programmes offer partners the opportunity to tap into ancillary revenue streams.
“Travel loyalty programmes also offer businesses the flexibility to drive ancillary revenue through expansion into adjacent verticals such as hotels, car hire and ground transportation,” he shared. “For example, we worked closely with one of our partners to estimate that if they looked to offer trip insurance as an add on, they could boost incremental revenue by around US$1.2 million and the early results are indeed looking promising.”
Rocket Travel by Agoda leverages its extensive industry expertise to guide partners in crafting loyalty programmes that resonate with their audiences, build loyalty and support sustainable growth. With a clear focus on personalised and flexible offerings, brands can build lasting customer relationships and elevate their market presence in 2025 and beyond.
Viet the report here.
