Loyalty has long been one of the most powerful concepts in travel. Airlines, hotels and travel brands have invested heavily in programmes designed to reward repeat customers with status, recognition and tangible benefits. For many travellers, loyalty is not about luxury; it is about predictability, progress and being recognised over time.
But loyalty programmes are changing. And increasingly, they are changing quietly.
Recent adjustments in airline fare structures and loyalty rules have sparked frustration among frequent travellers, not because change itself is unexpected, but because the value exchange is no longer obvious at the point of booking. This raises an important question: what does loyalty really mean today?
Traditionally, loyalty programmes rewarded frequency. Fly often enough, stay enough nights, and status followed. Over time, many programmes have shifted towards revenue-based logic, rewarding how much you spend rather than how often you travel.
This shift is not new — but what is new is how subtly it is being implemented. Fare brands that look similar on the surface can now deliver very different loyalty outcomes. For travellers, this creates a growing gap between price perception and actual value.
Understanding this gap is becoming essential.
In this article, we will explore:
A clear example of this shift can be seen in airline pricing models. In programmes such as Flying Blue, used by KLM, the lowest Economy fares no longer earn status points (XP). This means travellers can fly repeatedly without making any progress toward status.
On paper, the product still looks familiar: same seat, same aircraft, same destination. But from a loyalty perspective, the experience has fundamentally changed.
Even more confusing is the introduction of slightly higher-priced fares that carry the same restrictions and the same loyalty outcome. From a customer point of view, this raises a critical question: what exactly am I paying more for?
This is where loyalty friction begins.
Many travellers book with a mental model shaped by years of experience: flying equals progress. When that assumption no longer holds, dissatisfaction doesn’t appear immediately — it emerges later, when the expected status upgrade doesn’t happen.
This delayed realisation is key. Customers rarely complain at the moment of booking. Instead, they quietly adjust behaviour over time. Some stop caring about loyalty altogether. Others start comparing brands purely on price.
From a commercial perspective, this is risky.
The most important lesson for travellers today is this: lowest price does not always equal best value.
If loyalty benefits matter — lounge access, priority services, flexibility during disruptions — then fare selection becomes a strategic decision, not a tactical one. A cheaper ticket may save money today but cost benefits tomorrow.
This logic is not limited to airlines. Hotels increasingly bundle loyalty benefits into higher room categories, flexible rates or member-only offers. The underlying principle is the same: loyalty is being packaged, not given.
For hotels and other travel providers, there is a clear parallel. Guests are willing to make trade-offs — but only when those trade-offs are transparent.
When loyalty benefits are unclear, trust erodes quietly. Not loudly, not immediately, but steadily. And rebuilding trust is far more expensive than maintaining it.
The brands that will win are those that help customers understand:
Loyalty is no longer just about repeat behaviour. It is about informed choice.
Travellers are not necessarily asking for more rewards. They are asking for clearer rules. When loyalty programmes evolve, communication must evolve with them. Otherwise, loyalty stops feeling like recognition and starts feeling like exclusion.
For the travel and hospitality industry, the message is clear:
Transparency is no longer optional. It is a loyalty driver in itself.
If loyalty is part of your pricing or product strategy, whether in airlines, hotels or travel services, now is the time to step back and reassess.
Ask yourself:
Because in today’s market, clarity is the new loyalty.
If you would like to explore how pricing, packaging and loyalty can work together more transparently, we’d be happy to continue the conversation.
