What’s New in Our Loyalty Program: Updates & Member Perks

Stuck in the Dark Ages. Byzantine. Complicated. Opaque. These are some of the blunt reactions travel industry experts give when describing today’s airline and hotel loyalty programs. Yet enrollment keeps climbing—often at record rates—showing that travelers still value points and perks.

On the airline side, one of the biggest changes is American Airlines’ AAdvantage program. As of Aug. 1, award miles on American-branded flights are earned based on ticket price rather than distance flown, a shift that follows similar moves by United MileagePlus and Delta SkyMiles.

That change helps on shorter domestic routes, which in many cases now require fewer points. However, travelers will generally spend more points for international premium travel. For example, American cut the one-way business-class award on short flights from 25,000 to 15,000 miles, but business-class travel to Europe now starts at 57,500 miles, up from 50,000. First-class to Europe begins at 85,000 miles, up from 62,500.

“Business travelers are ‘hurt less’ by frequent-flyer program changes, but not ‘better off,’” says Gary Leff, founder of View From the Wing. He notes that awards, especially international premium awards, have become more expensive and upgrades are tougher to secure. Even something like extra legroom is now often marketed as an “upgrade.”

Airlines have less incentive to give away premium seats as flights fill up. Chris Lopinto, president and co-founder of ExpertFlyer, points to carrier consolidation and higher load factors as reasons airlines are charging more for better seats.

For travelers trying to figure out award and upgrade pricing, things are getting more complex. Airlines are moving toward semi-dynamic pricing that factors in inventory, flight time, demand and destination. Traditional award charts are disappearing—Delta SkyMiles, for example, no longer publishes a straightforward award chart—so travelers must check availability and simulate bookings to learn how many points are required.

If a frequent-flyer program no longer meets your needs, Lopinto recommends voting with your wallet and educating yourself about options. Some carriers will match elite status if you switch. Consider using a flexible credit card that transfers points to multiple airlines and join the loyalty programs of carriers you fly. Leff adds that real value can often be found by redeeming directly through airlines such as Singapore Airlines or Korean Air, which may offer better upgrade availability through their own programs.

Hotel loyalty programs have taken a different tack: many are redesigning benefits to attract and retain business travelers while appealing to changing demographics. Scott Weller, vice president of marketing and communication for Sonesta International Hotels, observes that millennials—who value unique experiences and social sharing—are influencing program design. Points alone are no longer enough.

Choice Hotels’ Choice Privileges revamped its program to allow free nights for fewer points at more than 1,500 hotels and introduced instant redemption of miles for gift cards at dozens of retailers and restaurants through digital e-cards.

Wyndham Rewards simplified its approach: members earn at least 1,000 points per stay and 15,000 points equals one free night at any brand hotel or resort. Wyndham also offers local experience credits when members redeem points at top destinations, with PLUS awards ranging from modest values for entry-level members to experiences worth up to $150 per award night for Diamond-level members.

“Programs have grown complicated, and with so many rules it’s hard to know what you need,” says Noah Brodsky, senior vice president of worldwide loyalty and engagement at Wyndham Hotel Group. Wyndham pursued simplicity and generosity after business travelers told them they don’t have time to learn complex rules. The company found many business travelers save points for free nights but redeem them for leisure travel.

Hyatt’s Jeff Zidell, senior vice president for Hyatt Gold Passport, emphasizes that loyalty must evolve or risk becoming obsolete. Hyatt introduced Guest of Honor, which allows Diamond members to redeem points on behalf of friends and family. Zidell also highlights the broader notion of loyalty—what he calls “Big L” loyalty—where engagement and meaningful service matter more than points alone.

Small touches can make a difference. Zidell shares an example of a guest who enjoyed personalized local recommendations—first in Orlando, then later receiving a tailored list of staff-recommended burger spots upon arriving in New York.

Marriott Rewards extends engagement beyond stays through social initiatives like #MRPoints, which rewards members for sharing on social media, and occasional points rewards for interacting with marketing emails. Marriott also offers experiential redemptions—members can use points in an Experiences Marketplace to access tickets and special events such as Broadway shows with unique pre-show elements.

Brodsky says Wyndham is exploring nontraditional redemptions beyond room nights, including fractional ownership rental properties and other innovative uses of points. The program has been growing rapidly, adding millions of members and increasing redemptions.

There’s no single best formula for loyalty programs, but one constant remains: consumers want recognition and rewards. Gary Leff notes that program generosity tends to ebb and flow with the economy—more generous in downturns, tighter when demand is strong. With passenger traffic high today, airlines are less generous, but business travelers may see conditions shift in their favor over time. For now, loyalty programs continue to evolve as the industry balances capacity, demand and the changing expectations of travelers.