TNMT Newsletter #186: These 16 startups are rewriting loyalty

Hi there,

If you missed our last TNMT Newsletter, well… you missed a spicy one.

We took a bold swing at traditional airline loyalty programs.

And let’s just say, some of you didn’t hold back in the replies. 😅

Our thesis? 

Many of the recent “enhancements” to airline loyalty schemes (read: downgrades for travelers, see chart below) aren’t exactly earning five-star reviews.

In fact, our analysis of over 10,000 social media posts related to airline loyalty programs shows a steady rise in negative sentiment over the past two years.

And it’s not just complaining on social media. 

Real behavior is shifting, too.

• Sign-up rates for airline loyalty programs are trending downward.
• Younger travelers, in particular, are turning their backs on traditional points-based schemes altogether.

So… what’s next?

This week, we explore what happens when legacy systems underdeliver.

Because when that happens, startups don’t ask for permission. 

They just moved in.

• We’ve identified 16 of the most promising new-age loyalty startups.
• These players are rethinking how travel loyalty should work in 2025 and beyond.

Not just for airlines, but also for hotels and other travel brands.

Curious who’s building the future of loyalty? 

Then keep scrolling.

And to our friends at the airlines, we say this with love. You know, we only roast the ones we care about. ❤️ 

Your Lufthansa Innovation Hub Team

Research Pt. II 

Who’s Leading the Travel Loyalty Revolution?

So, who’s actually building the next-gen loyalty playbook?

Our TNMT startup scouting has surfaced a growing wave of innovators rethinking what airline loyalty should look like going forward.

While loyalty innovation today spans a wide spectrum, including travel subscriptions to premium membership models, we’ve focused this mapping on startups that specifically reinvent the traditional points-based reward logic.

• In the chart below, you’ll find 16 standout travel loyalty startups that we believe are reshaping the landscape. 
• They represent the sharpest signals of a broader shift in how loyalty is earned, redeemed, and experienced.

To make sense of this new terrain, we’ve grouped them into four distinct categories, each reflecting a different strategic angle, aka value proposition.

Let’s unpack what defines each cluster.

1. Personalization: From Pots to Personalized Perks

Most frequent flyer programs today still suffer from a rewards hangover: think generic catalogues full of uninspiring items (yes, including that infamous kitchen pot). 

However, a new crop of loyalty startups is flipping the script by tailoring rewards to the individual, rather than the average.

At the heart of this category is personalization, the idea that loyalty rewards should reflect a traveler’s unique preferences, behaviors, and context. 

• Instead of redeeming points for random household items, travelers might now unlock a cooking class in Tuscany, a surprise room upgrade at their favorite boutique hotel, or VIP access to a local concert at their destination. 
• In short, rewards become part of the journey, not an afterthought.

For airlines, this shift couldn’t be timelier. 

Too often, the flight is viewed as merely the functional aspect between departure and destination. 

But if rewards become part of the travel memory, they can help airlines reposition themselves as emotional brands, not just logistical ones.

One startup at the forefront of this movement is Superlogic , a loyalty tech company that turns rewards into real-world experiences:

• The platform lets brands (like airlines) integrate their white-label solution and offer their customers high-end, experiential redemptions, including courtside NBA seats to behind-the-scenes museum tours.
• Under the hood, the platform tokenizes loyalty points using blockchain, enabling more flexible, transparent redemption.
• The platform has an AI engine that personalizes rewards based on individual behavior and past redemptions, increasing emotional engagement and reducing churn.

With $13.7 million USD in Series A funding raised in early 2025, Superlogic is a strong signal of where loyalty is heading next: 

Away from points-as-currency, and toward experiences-as-connection.

2. Instant Rewards: From Delayed Gratification to In-the-Moment Delight

One of the biggest frustrations with traditional airline loyalty programs? 

You wait. And wait. And wait...

You spend months or even years accumulating miles, only to be met with uninspiring merchandise or blackout-date-limited redemptions that feel far removed from the magic of travel.

But the new wave of loyalty startups is flipping that model on its head.

• Instead of delayed gratification, they’re delivering instant rewards, so perks that activate in real time, right when travelers need them most.
• Consider extras such as extra baggage allowance, seat upgrades, or lounge access, but not at the time of booking (when most people are still weeks away from departure and not yet thinking about baggage), but rather at the airport or mid-trip.

And one startup is taking this logic a step further: Arcube .

• Arcube is turning the entire structure of loyalty programs upside down. 
• Rather than focusing on redemptions before or during a journey, Arcube activates rewards after a trip is completed, when travelers are still mentally in “travel mode” and most receptive to relevant upgrades for their next journey.

Another key feature?

Allowing travelers to convert unused frequent flyer miles – often left to expire under traditional programs – into personalized ancillary services for future flights.

For travelers, it’s a win. For airlines, it’s a revenue engine. 

• Its dynamic pricing model ensures that each offer feels personalized and timely, boosting conversion rates and incremental spend.
• From a tech standpoint, Arcube also offers a B2B white-label solution, with flexible configurations (UI and CLI) that airlines can fully customize or plug into existing rules engines.

It’s already making waves: 

• Etihad became Arcube’s first major airline partner and reported a 10%+ uplift in average order value during a pilot rollout.
• Recognition followed fast: Arcube was crowned “Best Loyalty Startup of the Year” at the Golden Loyalty Awards, won the Technology Category at the 2024 Venture Further Awards, and was a startup pitch winner at Phocuswright 2025.

3. Fintech Focus: Where Payments Meet Points

The next wave of travel loyalty is (also) being driven by fintech.

Rather than focusing on airline perks alone, a new class of startups is blending loyalty with payment technology, unlocking ways to earn and redeem points in more flexible, everyday contexts.

At its core, this trend is about expanding the utility of loyalty rewards beyond the airline itself. 

• Traditionally, frequent flyer points could only be redeemed within tightly controlled ecosystems.
• But these fintech-driven models are rewriting that rulebook.

Today, loyalty currencies are being unbundled.

Instead of letting your miles sit idle or tying them to limited flight-based redemptions, you can now use them in more dynamic ways: from retail purchases to digital services. 

Imagine booking a trip with airline points, then using leftover rewards to shop on Amazon.com.

One company championing this shift is Pointspay , a Swiss-based platform that allows users to earn and redeem loyalty points directly at e-commerce checkouts, bringing travel rewards into the world of everyday spending.

Another standout player is Cardless , a U.S.-based white-label provider building co-branded credit cards with built-in loyalty functionality.

• Its platform enables airlines to embed credit cards directly into their websites or mobile apps, streamlining both sign-up and usage.
• Cardless has already partnered with major carriers like Qatar Airways, LATAM Airlines, and TAP Air Portugal.
• The provider recently dropped its “one-card-per-lifetime” rule, allowing travelers to hold multiple airline cards and stack rewards more flexibly.

In late 2024, the company secured $30 million USD in later-stage funding to further expand its fintech loyalty infrastructure.

Both Pointspay and Cardless show that next-gen loyalty approaches are loosening the grip of legacy programs by turning loyalty points into a spendable, fluid currency. Anytime. Anywhere!

4. Metasearch for Loyalty: Navigating the Points Maze

If the loyalty landscape feels increasingly fragmented and opaque, you're not alone. 

For travelers juggling multiple airline or hotel programs, maximizing their points has become a complex game of guesswork and fine print.

Enter loyalty metasearch.

• Much like travel metasearch platforms such as Kayak or Skyscanner solved the flight pricing overload of the 2010s, a new wave of loyalty-focused search engines is tackling the reward system sprawl of the 2020s. 
• These platforms enable travelers to search, compare, and redeem flights, hotels, or services, not based on cash prices, but based on their available points and miles.

By aggregating offers across providers, they bring much-needed transparency to a system that’s long been designed for insiders.

• More importantly, many of these tools offer “earn-and-burn” functionality across brands. 
• That means users not only see where they can redeem rewards, but also where they can continue earning points, all from a single interface. 
• The result: smarter choices, better value, and less friction.

A standout player in this category is Rove .

Founded in 2023, Rove is a universal airline mile platform that functions as a metasearch engine for loyalty rewards.

Some of its key features:

• A browser extension and travel portal that lets users earn points on everyday spending, from online shopping to travel bookings, and convert them into miles or hotel points.
• Full interoperability with 12 global loyalty programs, including Air France-KLM Flying Blue, Qatar Airways Privilege Club, Etihad Guest, and Air India’s Maharaja Club.
• Redemption options across 140+ airlines and 200,000+ hotels, all layered on top of users’ existing credit card rewards.

In other words, Rove turns fragmented loyalty currencies into a unified rewards wallet, making it especially appealing to occasional travelers who want simplicity without sacrificing value.

And that’s exactly where the broader shift is headed: away from complexity, toward clarity.

As travelers grow savvier (and startups get bolder), airlines can’t afford to ignore these emerging models. 

To keep their golden loyalty goose alive, they’ll need to start testing new ideas before someone else wins over their most valuable travelers.

Full Article

Press Picks 

Our Recommended Must Reads 

EUROPE’S DEFENSE TECH PUSH – There was a distinct national-security twist to this year's Paris Air Show, among the highest-profile aerospace get-togethers in the world.

Read more by Axios

INTELLIGENT AIRPORTS – The future of air travel is here: AI-powered baggage handling, biometric boarding, and predictive maintenance are transforming airports into seamless smart hubs.

Read more by GHARAGE

STARTUP COLLABORATIONS – Top mobility firms are rewriting the corporate innovation playbook, scaling startup collaborations to drive faster R&D and market-ready solutions.

Read more by GlassDollar

TESLA’S ROBOTAXI GAMBLE – Wall Street reacts to Elon Musk’s bold Robotaxi launch plan, with investors split on whether Tesla can deliver a driverless future.

Read more by Quartz

AIR FRANCE’S SKY-HIGH DINING – The airline opens a pop-up restaurant on the roof of Paris’ Galeries Lafayette, blending aviation glamour with gourmet cuisine.

Read more here

Deal Tracker 

Most Recent Investment Deals

– VC –

Applied Intuition - the US-based autonomous vehicle software developer raised $600M in Series F funding led by Kleiner Perkins and BlackRock, with participation from other investors including Qatar Investment Authority, and Abu Dhabi Investment Council. The funds will be used to support product development and team growth.

Ramp - the US-based corporate travel expense platform, raised $200M in Series E funding led by Founders Fund, with participation from other investors. The funds will be used to support product innovation and platform expansion.

Decagon - the US-based AI-powered customer services agent for travel, hospitality, and other industries, raised $131M in Series C led by Andreessen Horowitz and Accel, with participation from other investors. The funding will be used to expand the team.

Canary Technologies - the US-based hotel guest management platform, raised $78.79M in Series D funding led by Brighton Park Capital, with participation from other investors. The funds will be used to accelerate the company’s expansion.

Zeelo - the UK-based transportation-as-a-service provider for corporates and schools raised $23M in Series B funding led by Blue Earth Capital, with participation from other investors. The funds will be used to strengthen its presence in the UK and Ireland and accelerate commercial growth in North America.

chatlyn - the Austria-based AI-powered customer engagement platform for hospitality raised $9.28M in Series A funding led by Smedvig Ventures, with participation from other investors. The funds will be used to expand its operations in Europe, Asia-Pacific, and the Middle East.

Evera Cabs - the Indian ride-hailing eMobility startup raised $4M in early-stage funding in the form of convertible debt from Mufin Green Finance. The funds will be used to support the expansion of its electric vehicle fleet.

umob - the Netherlands-based sustainable mobility app aggregator raised $3.98M in early-stage funding from undisclosed investors. The funds will be used to accelerate the growth of sustainable mobility in Europe through partnerships with international providers.

Juno - the US-based corporate guest travel expense platform, raised $3.66M in early-stage funding in the form of a simple agreement for future equity, from Avid Ventures and others.

Ara - the US-based in-car commerce platform for drivers to earn additional income, raised $2M in later-stage funds in a combination of debt and equity from undisclosed investors.

Truliv - the India-based co-living platform offering affordable and community-oriented living spaces raised an undisclosed amount of funds in Series A funding. The funds will be used for expansion across new Indian cities. 

Phycobloom - the UK-based biofuel company using algae oil to produce SAF joined Moeve as a part of its Light Up acceleration program. No equity or funding was exchanged as a result of this program.

SquadTrip - the US-based automated payment provider for group trips joined the Plug and Play Tech Center accelerator program. No equity or funding was exchanged as a result of this program.

– M&A –  

SevenRooms - the US-based reservation and guest management platform was acquired by DoorDash, the online food order aggregator, for $1.2B.

Godo - the Iceland-based hospitality resource planning services provider was acquired by Visit Group, the e-commerce packaging and distribution platform for the tourism industry, for an undisclosed amount.

FlightorFight.ai - the US-based online flight complaint platform that enables travelers to submit complaints and request reimbursements, was acquired by airfairness , the online platform that helps air travelers determine their eligibility for flight compensation, for an undisclosed amount.

Vikey - the Italy-based online self-check-in and check-out platform for vacation apartments was acquired by Zucchetti, the software company focused on improving business operations, for an undisclosed amount.

Luxtripper - the UK-based luxury travel platform was acquired by Moresand, the operator of a travel agency, for an undisclosed amount.