However, across the travel, hospitality, and payments sectors, companies are now fostering loyalty based on a broader concept of value, which goes beyond just points and cashback to encompass personalized experiences, flexibility, and exclusive access.
Experts indicate that modern travellers are assessing rewards ecosystems in a more comprehensive manner.
“Loyalty is no longer solely defined by points accumulation; it’s about how relevant and flexible those rewards are in enhancing the overall experience,” said Karthik Venkataraman, Chief Product and Revenue Officer at VeTravel – Vernost, a holistic B2B travel technology platform.
He noted that while travellers still appreciate savings and rewards, they increasingly expect these to mesh with convenience and tailored travel experiences.
This shift is also evident in hospitality.
Hotels and travel firms are now focusing on curated stays, local experiences, wellness programs, and seamless service to deepen customer engagement.
“Today’s savvy traveller isn’t motivated solely by points accumulation or transactional rewards; they look for connections, meaning, and memories that last beyond their stay,” stated Vikram Puri, Managing Director at Archer Hospitality, a hospitality firm in India.
Puri explained that hospitality brands are working to build loyalty through personalized and experience-driven offerings rather than relying on traditional reward systems alone.
He mentioned that guests in the premium segment want their payments to “unlock something unique, not merely something redeemable.”
Puneet Sethi, Managing Director at Kaara Hotels, a hotel management company, remarked that the industry is gradually shifting from “transactional loyalty to relational loyalty,” where emotional connections drive repeat engagement more effectively than discounts or point collection.
“Unlike points, which can easily be compared among brands, experiences are much harder to replicate,” Sethi stated. “They are linked to how a guest felt during their stay, and that emotional connection becomes the strongest motivator for repeat visits.”
Premium cards are selling access
Travel-oriented credit cards have changed significantly in recent years. Previously, rewards programs mainly competed on points and redemption values.
Now, banks are rebranding premium cards around lifestyle and travel ecosystems.
Access to airport lounges, concierge services, hotel memberships, premium dining privileges, travel insurance, airport transfers, and curated experiences have become essential differentiators.
“People prefer cards that enhance the experience, not just those that maximize the points,” remarked Dhruv Verma, CEO of Thriwe, a global technology-driven B2B consumer benefits and loyalty program provider.
Verma noted that many consumers now assess premium cards more for their ability to simplify travel rather than just for reward calculations.
Travel platforms are observing similar trends emerging.
“While rewards and loyalty programs are still important, they are no longer the primary factor in travel decisions,” commented Bernard Corraya, General Manager at Wego, a global travel metasearch engine and online marketplace.
Satheesh Satchit, Co-Founder and Chief Product Officer at Verteil Technologies, a travel tech company, noted that travellers are looking beyond the lowest fares.
“Many are willing to invest a bit more if it offers them better flight times, enhanced comfort, flexibility, or simply a smoother journey,” he stated.
Why card issuers are quietly scaling back rewards
While premium travel benefits are becoming more appealing, the financial viability behind them is increasingly challenging for issuers.
Credit card companies have adjusted travel programs by cutting certain benefits, tightening eligibility criteria, and altering redemption structures as costs rise.
Several issuers have implemented higher annual spending thresholds to unlock accelerated reward points, hotel memberships, or complimentary travel benefits.
Transfer partnerships have also evolved.
For instance, Axis Bank has removed several hotel and airline transfer partners from some premium offerings, including those linked to hotel and airline loyalty systems. Revisions have also been made to reward structures in milestone spending benefits and redemption values.
These changes reflect a broader challenge within loyalty programs: premium experiences such as airport lounges, hotel partnerships, and travel privileges are considerably more expensive to maintain compared to traditional reward structures.
As usage escalates, banks are navigating the balance between customer acquisition, benefit costs, and profitability.
What should cardholders do?
For consumers, this evolving landscape raises the question: how should travel cards be assessed when perks and reward structures might change?
Experts recommend focusing less on superficial benefits and more on actual usage.
Instead of pursuing every premium card or heavily relying on a single rewards ecosystem, consumers might find it advantageous to diversify their spending across a select few cards that align with their purchasing habits.
Cards co-branded with travel or hospitality brands may also prove more valuable for consumers who frequently use specific hotel chains or airline networks.
Simultaneously, experts warn against allowing rewards structures to dictate spending behavior.
“The experience economy hasn’t altered the fundamentals of personal finance,” Verma remarked. “It has merely shifted what people prioritize.”
Satchit echoed similar sentiments, noting that experience-driven spending is most effective when it is planned rather than impulsive.
