Dave Parsons, chief customer cfficer of iSeatz, discusses how to redefine loyalty through experiences
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Guest Post: Travel loyalty enters the age of experiences
Travel loyalty programs have traditionally been defined by a straightforward value proposition: spend money with a brand to earn points toward airfare, lodging, and other travel expenses. But as this offering has become commonplace, even commodified, differentiation is a critical strategic advantage. Brands understand this; according to iSeatz’s 2025 report, The Tipping Point: How US Travel Loyalty Is Evolving - a Three-year Perspective, 44% of US travel loyalty programme professionals say that differentiating their loyalty or rewards offerings from competitors is their most pressing challenge.
Experiences, specifically experiential travel, can provide a valuable pathway toward that differentiation.
Meeting demographic expectations for experiences
Experiential travel is growing in both scale and significance. Flywire’s Travel Provider Insights 2024 report found that 89% of travel providers saw increased demand for experiential travel. Other industry sources project that the experiential travel market will exceed $3 trillion, as greater numbers of travelers – primarily Millennials and Gen Zers – view experiences as integral to shaping their trips.
For this growing segment of travelers, the entire trip is the experience, and reward portfolios must evolve accordingly. Younger generations, which represent future growth, are joined by high-net-worth individuals (who drive an outsized portion of travel loyalty program spending) in embracing experiential travel. Both cohorts make experiences integral to their trip planning, often in unique ways. Marriott’s Ticket to Travel 2025 report, for example, found that 61% of travelers, including 78% of 25-34-year-olds, have engaged in or plan to engage in heritage travel. Another 67% have embarked on "bravecations," centered on adventurous activities.
Redefining loyalty through experiences
Why do experiences resonate, and how are travel loyalty programs incorporating them? Experiential travel occupies a unique place in the broader travel ecosystem and within travel loyalty programs. For casual and mass affluent travelers, it serves as an aspiration goal while delivering exclusivity and novelty for high and ultra-high net worth segments. While some programs, like Marriott Bonvoy with its Moments initiative, have excelled at creating and offering experiences to members, most travel loyalty programs still rely on traditional approaches that fall short of meeting the demand for immersive and unique travel experiences.
What makes Bonvoy Moments exemplary is its breadth, variety, and inventive approach. Transactional value is ubiquitous—every points-based loyalty program allows members to redeem points for hotel stays or upgrades. What keeps members loyal and engaged is access to exclusive, compelling experiences that go beyond the expected. Loyalty programs across industries are working to emulate this model, incorporating more options that diverge from standard travel rewards, such as VIP event access or combined activity bundles.
Beyond points: The future of travel rewards
The appeal of experiential travel is not limited to redemptions. While consumers want to redeem points for experiential rewards, the demand for experiential travel presents opportunities on the earning side. By offering experiences as direct purchase options that allow members to earn points, travel loyalty programs can further capitalize on this growing demand. More programs are adopting this dual strategy, expanding redemption options while improving direct booking opportunities through earning bonuses and incentives.
Although "exclusive" frequently appears in loyalty program marketing, delivering true exclusivity in rewards or status is rarely feasible. Yet the prospect of unique travel experiences is a motivator for consumers; as this year’s Tipping Point report found, 23% would spend more when booking a trip (and 22% would book more frequently) if their travel loyalty program offered more exclusive, members-only travel options. Travel loyalty programs are responding to this dichotomy by shifting their focus from exclusivity to uniqueness, achieved through bundling distinct experiential components, strategic sourcing from suppliers who maintain exclusivity agreements, and tailoring experiences to individual preferences. Access to advanced technology and partnerships with loyalty technology providers will be crucial in delivering these "unique" experiential rewards.
In this new travel landscape, transactional rewards have become table stakes, leaving members seeking experiential options. To compete effectively, travel loyalty programs must expand beyond baseline activities, forge strategic partnerships to diversify experiences, and embrace uniqueness over exclusivity. Programs that master these areas won't just stand out—they'll redefine loyalty in travel, transforming it from a transactional exchange into a journey that members eagerly anticipate.