Airlines and hotels continually adjust loyalty programs to reflect changing consumer behavior, and younger generations are reshaping expectations. According to Chris Galloway, executive vice president of Strategy & Design at Brandmovers, millennials are the most active participants in loyalty programs to date, and as Gen Z gains purchasing power, their appetite for rewards and tailored loyalty experiences is accelerating.
Galloway highlights trends such as hyper-personalization, interactive content, and highly segmented offers as gaining momentum across the industry.
“Acquisition remains a goal, but reactivating dormant members and improving retention deliver higher returns,” he said. For travel categories with lower purchase frequency—like flights and hotels—the priority is building authentic brand engagement that keeps member value visible between trips.
Jay Sorensen, president of IdeaWorksCompany, which researches airline loyalty with support from CarTrawler, added that many programs now aim to convert casual members into co-branded credit cardholders. “If members fly one to four times a year, their interaction with the airline is limited. A co-branded credit card creates daily brand touchpoints.”
The four largest U.S. carriers—American, Delta, Southwest and United—benefit significantly from co-branded credit card partnerships, which strongly influence their frequent-flyer offerings. Sorensen noted that some recent fee increases, such as higher bag fees, serve to strengthen the financial advantage of holding an airline-issued credit card. At the same time, expanding credit-card pathways to status has reduced the exclusivity of elite benefits, which may lessen the perceived importance of elite status over time.
Reward values have declined since 2019. Measurements of reward payback—the value returned in miles or points per dollar spent on base fares—show a drop of more than half since 2019. The rise of Basic Economy fares has further weakened program value, as many basic fares reduce or eliminate mileage accrual.
Delta awards no miles for Basic Economy tickets, while Alaska, American and JetBlue have reduced accrual rates. United maintains the same accrual across its fare classes.
Delta recently raised the cost to earn each elite tier, with requirements for Diamond status increasing sharply—139 percent higher in 2024 than in 2022. The airline shifted emphasis toward Medallion Qualifying Dollars (MQDs), prioritizing spending over the simple act of flying. Some service changes, such as tighter Sky Club access rules, met with member backlash and prompted adjustments, including revised day limits for eligible cardholders and new partnerships like Lyft.
United measures progression to status by Premier Qualifying Flights (segments flown) and Premier Qualifying Points (PQP), which include certain paid surcharges and upgrades. MileagePlus members who are primary United MileagePlus Chase Cardholders can earn PQP through annual credit card spend, and for 2024 PQP earned via card spend can count toward 1K status. United also introduced MileagePlus miles pooling, allowing groups of up to five members to combine and redeem miles from a single joint account.
American Airlines tightened accrual rules in 2024: effective for tickets issued May 1, only flights booked directly with American, eligible oneworld and partner airlines, or preferred agencies earn miles and loyalty points—unless the customer is registered in AAdvantage Business or covered by a corporate agreement. American has also added flexibility for upgrades and Basic Economy tickets for members who book through the carrier or eligible partners. In 2023, the airline introduced Loyalty Point Rewards, and members can now select Loyalty Points as their reward to accelerate status progress.
AAdvantage credit cardholders continue to earn miles and loyalty points across a range of sites and partner bookings, including event ticketing platforms and hotel or dining portals tied to the program.
Alaska Airlines remains notable for a straightforward approach: it still awards miles based on distance flown rather than fare spend, a structure that NerdWallet ranked highly for value. Alaska recently launched Global Getaways, a quarterly promotion offering up to 50 percent off award travel to select international destinations for a limited time.
Southwest has made status easier to achieve. From January, Rapid Rewards members can reach A-List status with 20 one-way qualifying flights (down from 25) or 35,000 tier qualifying points. A-List Preferred now requires 40 one-way qualifying flights (down from 50) or 70,000 tier qualifying points. Co-branded Chase cardholders now earn more qualifying points per dollar spent, and members can pay for flights using a combination of cash and points.
“By lowering tier requirements and giving credit card spend greater weight, we strengthen engagement with our brand and co-branded cards while preserving core program benefits—like unlimited reward seats, no blackout dates, and points that don’t expire,” said Jonathan Clarkson, Southwest’s vice president of Marketing.
Hotel loyalty programs are following similar paths, emphasizing personalization and experiential rewards. Hilton’s 2024 Trends Report found that 64 percent of Gen Z travelers prioritize loyalty programs when planning trips. Hilton Honors targets younger travelers through its Experiences platform, which lets members redeem points for concerts, sporting events, and other unique moments. Hilton also launched Hilton for Business to simplify travel management and boost rewards for small- and medium-sized businesses.
Marriott Bonvoy recently introduced the MGM Collection in partnership with MGM Resorts International and expanded accommodation options with Apartments by Marriott Bonvoy to serve travelers blending work and leisure. Marriott engages younger members through Bonvoy Moments—offering exclusive experiences at varied point levels—and one-point promotions like 1 Point Drops. Members can now link Marriott Bonvoy and Uber accounts for additional convenience.
Choice Hotels expanded offerings after integrating with Radisson Rewards Americas, launching two co-branded Mastercards and enhancing Choice Privileges Experiences with sports and entertainment redemptions, including NASCAR and collegiate athletics.
Hyatt’s World of Hyatt collaborates with partners such as American Airlines AAdvantage and Mr & Mrs Smith, and offers the FIND experiences platform with more than 500 global activities. Its Be More Here branding emphasizes well-being and partnerships such as a MasterClass collaboration. World of Hyatt members can also gift awards or apply eligible awards to friends and family.
“Loyalty programs are evolving into engagement platforms—the destination for meaningful experiences and valuable relationships,” said Kaitlyn Sheehy, manager of Global Loyalty & Corporate Brand Communications at Hyatt. “We listen to guest feedback and integrate it into program design.”