Travel Loyalty Programs Just Got an Upgrade

Many financial institutions offer travel loyalty programs, but standing out in a crowded market demands more. These programs must continue to evolve and upgrade their offerings in order to differentiate. As digital advancements drive consumer expectations, refining loyalty programs with a forward-thinking approach is now table stakes, not optional.

Online travel agencies and other travel booking platforms have already set a high bar for convenience and personalization, meaning financial institutions must also step up their game to meet these standards. For some credit card or bank loyalty programs, that will entail integrating advanced features like personalized offers, easy redemption options, and a clear and responsive interface–all of which will improve how members interact with a program, ultimately driving stronger cardholder engagement and loyalty. 

The competition among consumer banks with credit card offerings is fierce, but with the right loyalty technology, a robust travel and lifestyle rewards portfolio, and the ability to engage with cardholders in a personalized way, financial institutions can differentiate themselves from rival brands and retain their most valuable customers. 

Conversely, credit card programs that are slow to invest in personalization and dynamic content capabilities or fail to diversify their rewards portfolio risk losing cardholders to institutions offering greater perceived value. A fragmented travel booking experience further erodes their edge. In other words, financial institutions must innovate to keep pace. If your rewards program can assemble a diverse, relevant, and customizable rewards portfolio and offer advanced travel booking capabilities, retaining cardholders becomes much easier, as does attracting new customers with the experiences and value that resonate with their lifestyles and needs.

Tailored Rewards: How Leading Credit Card Programs Get Personalization and Curation Right

Several of the largest credit card rewards programs, including those offered by American Express, Bank of America, and Citigroup, offer customizable rewards and some level of personalization. However, many other highly recognizable programs miss the mark, instead offering their cardholders identical reward options and travel content, regardless of their preferences, past behavior, or program status…This approach leads to missed opportunities to engage with members, spark incremental spending and deliver memorable cardholder experiences. 

Financial institutions hold vast amounts of data on their cardholders, which can be used to tailor the content presented to them and deliver personalized and unique member experiences. Consumers already expect this; in our recent Tipping Point for Travel Loyalty report series, 50% of travel loyalty program members said that receiving personalized offers is “extremely” or “very” important to them. 

An article examining the power of data in loyalty programs notes that dynamic pricing and targeted promotions are the two most effective ways travel loyalty programs can deliver greater personalization to their cardholders.

Thought-starter: Is your program doing this already, or are you missing out on meeting a significant portion of your members’ expectations?

If you want your rewards program to compete or outdo the personalization and dynamic content capabilities of other financial institutions, consider the following:

• Focus investments and loyalty program enhancements that increase your ability to personalize and create unique options for cardholders.
• Choose a loyalty technology provider with a flexible and configurable platform that can leverage multiple data sources to deliver tailored experiences.

Meeting Cardholders’ Expectations for Choice

Our State of Loyalty: 2024 Credit Card Rewards report found that many financial institutions are expanding their rewards portfolios. Yet, even with this expansion, gaps remain in offering diverse options that reflect contemporary consumer preferences. Our analysis shows that some lifestyle reward categories have grown considerably, with 76% of cards now offering tours and activities and 60% offering live event redemptions. 

Even with these majorities, a substantial number of cards, including those from well-known banks, still lack these popular lifestyle rewards. Notably, only 13% of financial institutions offer sustainability-related rewards despite rising consumer interest.

Thought-starter: Would you consider your rewards portfolio a strength of your loyalty strategy or a liability? Would your cardholders perceive it the same way?

How can your credit card rewards program better manage its rewards portfolio to meet consumer expectations and boost cardholder engagement? More crucially, how should you expand redemption options to compete with reward-rich brands like Chase and Citigroup?

• Start by adding rewards that your cardholders will likely appreciate and redeem. This will increase their engagement with your brand and spending on your card. 
• Next, expand your redemption options to complement core travel with relevant lifestyle rewards. If your portfolio lacks tours and activities, dining, or live events, which are natural parts of a typical cardholder’s travel plans, these should be your first additions.
• Finally, partner with a loyalty technology expert who can offer a broad array of rewards that allow you to meet cardholder needs without sourcing new suppliers or expecting you to manage those relationships independently.

Preserve Your Brand’s Integrity and Reputation with a Superior Travel Booking Experience

A competitive rewards portfolio alone cannot rival more full-featured credit card loyalty programs. To create an environment that effectively encourages cardholders to interact, engage, and spend with your card products, focus on creating more cohesive brand experiences across reward categories, rethink the user flow to prioritize accessibility, and introduce new features that improve the overall experience for members, like buy-now, pay-later (BNPL) capabilities for travel booking.  

Omnichannel integration, as Mike Englehart, iSeatz’s Chief Technology Officer, wrote about earlier this year, is crucial for financial institution rewards programs. Cardholders expect a consistent experience across all platforms, whether using mobile apps or websites. Cardholders expect to have the same experience everywhere. For travel loyalty programs, this approach ensures your brand is present and visible throughout the booking journey, reinforcing the value cardholders respond to. 

What Next? A Blueprint for Winning in Travel Rewards

You know that your cardholders and account holders expect convenience and value from their travel loyalty interactions. What should you focus on to deliver a more cohesive, brand-aligned experience?

• Ensure end-to-end control over your program’s travel booking experience by avoiding redirects to third-party sites.
• Employ a scalable, flexible booking platform that matches the features and capabilities of major OTAs, ensuring familiarity for your cardholders.
• Work with a technology partner that provides a full range of these capabilities, avoiding the fragmented experiences that result from a piecemeal approach.

The credit card reward landscape is crowded and only getting more competitive, and your travel loyalty program likely needs an upgrade to keep pace with industry leaders. The right loyalty technology can deliver more rewarding experiences, broader redemption choices, and a connected booking journey for your cardholders. 

When your cardholders have access to these benefits, your brand will enjoy higher engagement rates, increased spending, and improved retention—all key performance advantages for your institution.

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To learn more about our work with travel and financial services brands and their loyalty programs, contact us here.