The way Aussies plan and book their holidays has undergone a seismic shift. Gone are the days of flipping through glossy brochures or being tied to rigid, pre-packaged deals from a local travel agent. Today’s travellers are digital natives, armed with smartphones and a keen eye for value, navigating a landscape of apps, credit card rewards, and sophisticated price comparison tools. Now, a new wave of research indicates that loyalty programs are no longer just an afterthought; they’re an integral part of a strategic approach to maximising travel benefits.
A comprehensive, multi-part consumer study conducted by market research firm Phocuswright has unveiled some fascinating insights into modern travel habits. It found that a staggering 84 per cent of leisure travellers in the past year actively engaged in some form of “loyalty gaming” – essentially, strategically using rewards programs to their advantage.
Beyond Brand Allegiance: The New Face of Travel Loyalty
The research strongly suggests that traditional notions of unwavering loyalty to a single airline, hotel chain, or online booking platform are becoming increasingly rare. Instead, travellers are adopting a more pragmatic approach, viewing loyalty benefits as one piece of a larger puzzle that also includes price, convenience, and availability when making their booking decisions.
The study highlights that even among those who identify a preferred airline, hotel, or online travel agency (OTA), a significant portion – ranging from 57 to 68 per cent – still booked elsewhere in the previous year. The primary drivers for these detours? Better pricing and more favourable scheduling, underscoring the enduring importance of value for money.
Madeline List, manager of research and special projects at Phocuswright, commented that discussions around travel loyalty often become narrowly focused on accumulating points and miles, thereby missing the broader context. While travellers might be highly engaged with these programs, she asserts that engagement alone doesn’t equate to genuine loyalty.
Instead, the research indicates that travellers overwhelmingly prioritise value, fair pricing, reliability, and ease of use over the allure of loyalty benefits when selecting a brand.
Credit Card Rewards: A Growing Contender in the Loyalty Game
The way travellers earn and utilise points is also being reshaped by the increasing prominence of credit card rewards. The Phocuswright study revealed that a substantial 39 per cent of travellers charged gift cards to their credit cards specifically to accrue points for future use. Furthermore, 27 per cent admitted to opening credit cards with the express intention of reducing their spending or closing the account shortly after receiving a welcome bonus. An additional 16 per cent reported making purchases on behalf of others solely to generate rewards.
Adding further weight to this trend, a separate survey conducted this year by Skift Research, a division of the US-based travel industry news group Skift, found that for many American travellers, credit card rewards are now perceived as more valuable than traditional airline or hotel loyalty programs.
While similar credit card-linked programs exist in Europe, they generally offer less generous benefits. This is largely attributed to EU caps on interchange fees, which limit the funding available for substantial bonuses and high earn rates compared to their US counterparts.
How Rewards Are Shaping Travel Choices Today
Points and miles are not just about earning; they are increasingly influencing when and where people choose to travel. Phocuswright’s research indicated that half of travellers who redeemed points or miles on a recent leisure trip were visiting a destination for the first time. This suggests that rewards are opening up new travel horizons and encouraging exploration beyond familiar territories.
Generational Divides in Loyalty Strategies
The study also identified clear generational differences in how travellers approach loyalty programs. Roughly half of Gen Z and Millennial travellers indicated that variety was more important to them than sticking with the same brand. This implies that switching between airlines, hotels, or booking platforms can be a deliberate and strategic choice, rather than a consequence of dissatisfaction with a particular provider.
List reiterates that true loyalty isn’t born from a single interaction with a program; it’s the cumulative effect of all brand interactions throughout a customer’s lifetime. “Points and perks can reinforce that relationship,” she explains, “but without strong product quality, fair pricing, and well-executed experiences, there’s no reason to expect a loyalty program to meaningfully influence behaviour.” The modern traveller is discerning, and while rewards offer an incentive, they are by no means the sole determinant of their allegiance.
