A new report by Skift and Rocket Travel by Agoda reveals that 77% of consumers now abandon loyalty programs faster than before, urging brands to bridge the growing “value gap” between customer expectations and outdated loyalty models. The guide offers actionable strategies to transform loyalty into a driver of engagement and revenue growth.
MALAYSIA, 7 NOVEMBER 2025 – As travelers demand more meaningful value from loyalty programs, the gap between what brands offer and what customers expect continues to widen. A new report titled “The Loyalty Value Playbook: Redemption Experience and Cash Spend as the New Benchmarks for Customer Growth”—co-developed by Skift and Rocket Travel by Agoda, the strategic partnerships arm of Agoda—identifies key strategies for brands to modernize their loyalty ecosystems.
According to the report, 77% of consumers are now quicker to drop a loyalty program than they were just three years ago, signaling a growing impatience with inflexible or unclear benefits. The study emphasizes that loyalty today is defined not by points accumulation but by the ability to deliver consistent, transparent, and personalized value across the customer journey.
Rocket Travel by Agoda’s new playbook outlines six essential capabilities that enable brands to close the loyalty gap:
- Flexible Commerce Infrastructure – Integrating real-time point balances, instant confirmations, and points-plus-cash options to align with modern checkout expectations.
- Data and Personalization Engine – Leveraging AI-driven insights to tailor recommendations and boost redemption and booking conversions.
- Partner and Inventory Strategy – Expanding exclusive room and experience offerings, with added perks like early check-in and late checkout.
- Marketing Technology and Customer Journeys – Reducing point breakage through lifecycle messaging and clearer communication of reward value.
- Governance and Controls – Ensuring transparent dynamic pricing to sustain customer trust.
- Cross-Functional Collaboration – Aligning loyalty, data, and operations teams to improve metrics such as repeat cash bookings and lifetime guest value.
The report underscores that outdated loyalty models—where points remain unredeemed or rewards take too long to earn—risk losing customer engagement and revenue. Supporting data from Antavo shows only about 50% of loyalty points are redeemed, while Cordial’s findings reveal 43% of participants abandon programs due to slow reward accumulation.
By integrating frictionless redemption experiences, personalized engagement, and transparent governance, Rocket Travel by Agoda’s framework aims to help travel brands—from airlines to hotels—build long-term trust and increase both redemption rates and direct spending.
Damien Pfirsch, Chief Commercial Officer and Head of Rocket Travel at Agoda, said the evolution of loyalty expectations represents both a challenge and an opportunity. “Travelers still want traditional perks, but they also expect more, making loyalty harder to manage. This report gives travel brands a playbook to rebuild guest trust through clear, flexible, and relevant loyalty experiences.”
The Loyalty Value Playbook blends original research, expert interviews, and global case studies, offering travel leaders a roadmap to reimagine loyalty as a true growth engine in a highly competitive market.
