The Tipping Point, our third annual report series exploring consumer behaviors, business trends, and the state of travel loyalty, has become an industry benchmark since we launched it three years ago. This year’s report, The Tipping Point: How U.S. Travel Loyalty is Evolving—A Three-Year Perspective, presents multi-year comparisons and reveals new insights into changing consumer behaviors and the priorities reshaping loyalty programs.
The 2025 edition of The Tipping Point draws on survey data from 256 travel loyalty program decision-makers and 4,341 U.S. consumers actively engaged in these programs. This year, we also broadened our scope with a companion report, The Tipping Point: Inside Canada's Changing Loyalty Landscape, to explore the nuances of Canada's loyalty market.
What did our data reveal? The U.S. travel loyalty market is full of growth, with a majority (55%) of American consumers stating they belong to a program that allows them to earn or redeem points for travel—marking a first since the start of our series.
Our findings also show point to a recalibration in how brands measure loyalty program success, alongside an enduring disconnect in how brands and consumers view the user experience in travel loyalty programs.
More Americans than ever are now part of travel rewards loyalty programs, and the number who say three to five of those programs offer travel booking capabilities has risen by eight percentage points since 2023. This corresponds with 82% of brands reporting that their programs include travel rewards.
As travel rewards and booking options become more prevalent among loyalty programs, more consumers are turning to these programs as their first choice for booking travel—an approach confirmed by 56% of surveyed consumers this year.
Brands have responded to overall market growth by revising the performance metrics they use to evaluate loyalty programs, focusing more on long-term success. Retention remains the top metric (51%), consistent with 2023, but customer lifetime value (CLV - 47%) and net promoter score (NPS - 43%) soared by double digits this year. Among North American brands with over 50 million members, 79% now prioritize CLV as a key performance indicator, suggesting a renewed emphasis on cultivating long-term customer loyalty and satisfaction.
The key to improving satisfaction lies in delivering tangible value and a cohesive, rewarding user experience—but brands still have much ground to cover on this front. Consumers' preferred lifestyle reward redemptions have shifted toward savings on everyday essentials like groceries and gas (16% and 14%, respectively). While 32% of brands plan to introduce grocery rewards and 33% are eyeing food delivery rewards within the next 6–12 months, the slow pace highlights a persistent gap between consumer demand and brand action.
User experience presents an equally notable gap: 62% of consumers identify UX challenges as the biggest hurdle when booking travel through loyalty programs, yet only 6% of brands recognize UX as a significant issue. This disparity highlights the need for brands to address the disconnect between their priorities and the consumer experience.
Sustained growth in the U.S. travel loyalty market hinges on addressing critical gaps and aligning with evolving market dynamics. Key considerations include:
By adopting forward-looking loyalty strategies and refining program execution, brands can better anticipate and respond to consumer needs and maintain a decisive edge in the travel loyalty landscape.
For an in-depth examination of U.S. travel loyalty trends, download The Tipping Point: How U.S. Travel Loyalty is Evolving—A Three-Year Perspective, or explore our companion report on Canada: The Tipping Point: Inside Canada’s Changing Loyalty Landscape.
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To learn more about our work with travel and financial services brands and their loyalty programs, contact us here.