Loyalty programmes reshape Australian travel choices

The Australian Loyalty Association has published research showing loyalty programmes are reshaping travel purchasing and customer engagement, with findings pointing to growing demand for more personalised travel experiences.

Its data shows airline loyalty programmes remain among the top three membership categories for Australians, underlining their continued role in the sector. But only just over one-third of travel spending currently earns rewards, suggesting a large share still sits outside formal loyalty schemes.

That gap is significant for airlines and other travel operators trying to deepen customer relationships beyond single bookings. While many travellers have a preferred airline brand, a large proportion are not yet concentrating enough of their travel activity with one programme to maximise rewards.

The research also suggests loyalty now extends beyond air travel. In areas such as hotels and car hire, 64% of consumers said loyalty programmes had become more important in their buying decisions.

Participation among younger travellers appears especially strong. Gen Z consumers are leading engagement across hotel and car hire loyalty categories, reflecting broader expectations that travel brands should offer joined-up benefits across the whole journey, not just on flights.

Sarah Richardson, Chief Executive Officer at the Australian Loyalty Association, said loyalty programmes are changing as customer expectations shift.

"One of the things that became clear early on is that loyalty is far more than points and rewards. When done well, it becomes a strategic growth lever that influences customer behaviour, strengthens relationships and drives long-term profitability," Richardson said.

"Customers increasingly expect value beyond discounts, and programmes are evolving to offer experiences, partnerships, recognition and convenience, not just transactional rewards. At the same time, technology and data are enabling far more sophisticated levels of personalisation. Martech platforms, AI and predictive analytics are helping brands move from broad segmentation to genuinely contextual engagement," she said.

Audience shifts

Separate audience data from Nexxen adds another layer to the picture, suggesting travel brands may need to rethink broad loyalty offers aimed at a single mass market. The analysis found travel interest spread across age groups, with the strongest demand among people aged 25 to 44 and notable representation among travellers aged 55 and above.

The data also suggests the modern Australian traveller is slightly more likely to be female, at 52%, than male, at 48%. The single largest age cohort was 25 to 34, accounting for 28% of the audience.

Travel planning habits also varied by time and platform. Online research peaked at 8am and from 5pm to 11pm, with the strongest activity between Tuesday and Thursday, while desktop remained the main device during the decision-making process.

Advisory, passport and government travel websites were identified as important influences alongside airline and destination sites. Lower engagement on video and mobile during trip planning suggests practical information and comparison activity remain central to how many consumers organise travel purchases.

Those patterns reinforce a broader issue for travel marketers. If preferences differ by age, gender, life stage and booking behaviour, loyalty strategies based on generic rewards may struggle to hold attention.

AI uptake

Research cited from Amperity found artificial intelligence is becoming more widely used across travel businesses as companies try to tailor customer interactions more closely. According to its State of AI in Travel report, 41% of hotel and airline companies use AI daily or several times each week, while a further 19% use it weekly.

At the same time, one in five organisations still do not use AI at all. That points to a widening divide between businesses integrating data-driven personalisation into customer communications and those yet to begin.

For travel operators, the issue is not only automation but how effectively they can connect data from bookings, loyalty accounts, service interactions and browsing behaviour. Organisations most able to create a single view of the customer are likely to be better placed to target offers, address service issues and encourage repeat bookings.

Bel Lloyd, Customer Success Lead at Amperity, said the industry is under pressure to improve customer interactions while managing tight margins.

"The travel industry is having its AI moment," Lloyd said.

"Hotels and airlines face increasing pressure to balance rising guest expectations with tight operating margins. Every interaction matters, whether it's the booking page that anticipates a traveller's needs, the in-trip message that solves a problem before it escalates, or the loyalty offer that provides genuine value. These moments dictate whether a guest stays loyal or books elsewhere," she said.