Loyalty programs are everywhere, from coffee shops and local businesses to the major airline frequent flyer and hotel programs. In all, 89% of U.S. consumers were enrolled in at least one loyalty program as of 2020,\u00a0according to a 2022 study.<\/p>\n
And travel rewards programs are growing especially fast. Earlier this year, American Airlines What\u2019s behind the explosion? One reason could certainly be the continued, heavy demand for travel in the face of\u00a0inflation.<\/p>\n \u201cI think people want to stretch their dollars further,\u201d says Marcus Collins, a clinical professor in marketing at the University of Michigan\u2019s Ross School of Business.<\/p>\n But this growth in travelers getting savvy with\u00a0points, perks and credit cards\u00a0also means more competition among consumers for many of the program\u2019s ever-changing benefits. It\u2019s a phenomenon that begs the question: With more travel loyalty members than ever, how do you get ahead?<\/p>\n Also see: <\/strong>How to use your credit cards to fight inflation<\/p>\n Not only do customers want to save money on travel, but companies are giving them incentives to join, too.<\/p>\n \u201cIt costs eight times as much to acquire a new customer as it does to retain one,\u201d Collins says, citing his experience working with major brands like Delta Air Lines, Apple It\u2019s a key reason Delta But to support all of the new members, airlines, hotels and other companies had to make changes to how these loyalty programs are structured.<\/p>\n Plus<\/strong>: Is the rewards revolution over? Wine, fitness and other niche rewards cards have become casualties along with crypto cards.<\/p>\n In recent years, many airlines and hotels have shifted how members earn and redeem loyalty currency. For example, instead of charging customers a predictable, fixed number of points or miles for a free flight or hotel stay, many companies now tie redemptions to the same demand-based algorithms that dictate cash prices.<\/p>\n Similarly, some programs now hand out elite status based not just on how many flights or hotel nights a member accrued, but also based on money spent on travel and beyond.<\/p>\n For instance, when American Airlines revamped its AAdvantage program last year, it began awarding elite status based on the number of\u00a0\u201cLoyalty Points\u201d\u00a0a member earns through a combination of not only flying but also spending charged to American Airlines co-branded credit cards and through its online shopping portal, among other places. An AAdvantage member could conceivably reach elite status while hardly stepping foot in an airport.<\/p>\n Other companies\u2019 programs have similar variations of this. Some, like JetBlue But having more elite, card-carrying, club-belonging members has its own implications; Delta and American Express See<\/strong>: How credit cards ruined the airport lounge<\/p>\n \u201cIf everyone is platinum, nobody is,\u201d says Darron Kirkley, an instructor at the University of South Carolina\u2019s College of Hospitality, Retail and Sport Management.<\/p>\n Indeed, navigating such an environment is the reality for members trying to extract value from their loyalty.<\/p>\n With loyalty programs and their elite status tiers packed with members, there are a few things you can do to distinguish yourself from the crowd \u2014 and save money on travel.<\/p>\n Collect transferable points<\/strong><\/p>\n Instead of earning points in one program and never quite accruing enough for meaningful elite status, consider getting a credit card that earns flexible rewards, which can be transferred to many loyalty programs. That can protect you from sudden changes, devaluations (when a program starts charging more points for flights or stays) or lack of availability within any one program.<\/p>\n Treat your points like cash (but use them)<\/strong><\/p>\n Spending your points and miles sooner than later is a surefire way to avoid whatever future moves programs might make to water down their currency\u2019s value. With prices of an award flight or hotel stay now fluctuating more like cash prices, it\u2019s important to know\u00a0the baseline value of your loyalty currency, so you know when to use points (rather than cash) to book.<\/p>\n
\n AAL,
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\n reported first-quarter enrollments in its\u00a0AAdvantage frequent flyer program\u00a0were up 60% compared to pre-pandemic 2019. United Airlines
\n UAL,
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\n said sign-ups for its co-branded credit cards were up 30% year-over-year. And Hilton
\n HLT,
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\n reported membership in its\u00a0Hilton Honors program\u00a0grew at a 60% clip compared to last year.<\/p>\nWhy are more people joining loyalty programs?<\/strong><\/h2>\n
\n AAPL,
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\n and Nike
\n NKE,
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\n DAL,
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\n executives required just one thing for customers signing up for its new\u00a0complimentary inflight Wi-Fi\u00a0\u2014 a SkyMiles frequent flyer membership. Delta said the move helped drive millions of new enrollments early this year.<\/p>\nA changing loyalty landscape<\/strong><\/h2>\n
\n JBLU,
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\n even hand out some limited perks to members who have not quite qualified for elite status. Changes like these undeniably give more customers a taste of status.<\/p>\n
\n AXP,
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\n have levied\u00a0stricter airport lounge access\u00a0rules amid reports of overcrowding.<\/p>\nSo how do you win the loyalty game?<\/strong><\/h2>\n