Points, Perks, and Pitfalls: A Traveler’s Tale of Loyalty Programs

Part 2: The Consumer Lens

Loyalty programs promise rewards, but as a frequent traveler, I often find a gap between the marketing and the experience. Sure, there’s a dopamine hit when I flash The 1 Card at Central World, or check my Amex points at month’s end. Gamification is everywhere, from Shopee purchases to spa visits to my corner 7-Eleven. Each swipe is a little win, each badge or tier a mini milestone.

But beneath the thrill lies a more sobering truth: many loyalty programs are designed to serve the company first, and the consumer second.

 When Loyalty Becomes a Letdown

Redeeming those hard-earned points? Often a letdown. A Bangkok–Paris flight priced at 180,000 miles feels more like a luxury purchase than a reward. Dynamic pricing creeps in. Perks vanish. Point expiration penalizes the infrequent traveler, and chasing points can feel like a game you’re destined to lose. Marriott Bonvoy’s 35,000-point nights quietly shift to 50,000. Hilton’s tiers require a spreadsheet to decode. And Fans of MO? Dreamy, yes - but unless I’m near one of their 40+ hotels, it’s irrelevant. Meanwhile, OTAs like Booking.com’s Genius program cut through the noise: immediate discounts, no math, no blackout dates. It’s convenience over loyalty, hard to argue with that.

Common Frustrations:

• Devaluation: Points lose value (Bonvoy now valued at ~0.9 cents/point).

• Complexity: Too many rules, too little time.

• Elitism: New tiers keep appearing, many feel out of reach.

• Data trade-off: As discussed in Part 1, we’re not just earning points—we’re handing over data: location, behavior, preferences. Loyalty becomes a masked transaction: your personal data in exchange for perceived value.

• Most programs collect and monetize consumer data to third parties.

Practical Tips from the Road

• Pick one airline alliance that dominates your travel hub, stick with it.

• Use a secondary low-cost carrier for regional flights if needed.

• Combine cash+miles redemption for your flight plans.

• For hotels, limit to 1–2 programs (especially for business travel), this helps you unlock elite status faster

• When traveling for fun, favor immediate value (free upgrades, breakfasts, discounts) over long-term point accumulation.

• Co-branded credit cards boost miles earning and simplify redemptions, but remember: you’re trading privacy for convenience.

Conclusion: Loyalty Must Work Both Ways

As travelers, we want to feel seen, not just scanned. We trade our data, our time, and often our trust. In return, we expect more than fine print and expiring perks. We want programs that are transparent, convenient, and emotionally resonant.

In Part 1, I explored the company’s view of loyalty, revenue, retention, ROI. In Part 2, we’ve looked at what travelers actually experience. In the final post, I’ll bring both perspectives together: What does a fair, future-ready loyalty model look like? And how can brands and travelers win together?

#LoyaltyPrograms #TravelMarketing #Airlines #Hotels