- The 2025 Tipping Point Report reveals a surge in travel loyalty programs in the U.S., with AI and personalization playing significant roles in consumer engagement.
- There is a notable shift in performance metrics, with brands focusing on customer satisfaction and profitability.
iSeatz recently unveiled its third annual Tipping Point report. This comprehensive study aims to explore the evolving dynamics of the U.S. travel loyalty marketplace.
Based on surveys of 256 loyalty program decision-makers and 4,341 U.S. consumers, the report delves into year-on-year changes in consumer behavior, program design, and technology adoption. It provides valuable insights into the reshaping of loyalty programs, highlighting opportunities for reward diversification and user experience enhancements.
Key findings from the report underscore the increasing role of artificial intelligence (AI) and personalization in engaging significant consumer segments. Brands have shown a shift in their performance metrics, emphasizing their travel loyalty programs’ long-term impact and profitability.
For instance, 47% of brands, including 79% of North American programs with over 50 million members, measure program success through customer lifetime value (CLV), and 43% rely on the net promoter score (NPS). This indicates a shift toward profitability-focused strategies.
However, despite consumers ranking savings on travel as the most valuable benefit of their loyalty programs, 62% report user experience issues when booking travel through these programs. This highlights a glaring disconnect between consumer needs and brand priorities, with only 6% of brands viewing user experience as a challenge.
The report also indicates that incorporating AI tools and personalized offers may help brands engage their customer bases more effectively. Almost half of consumers (47%) say they have used AI to plan travel within their loyalty programs, while 45% of brands cite integrating AI into their loyalty strategy as a top challenge.
Larry Wine, President of iSeatz, commented on the findings, “Our survey data makes a compelling case for investing in adaptable, innovative travel technology that meets the expectations of American consumers and enhances the value of brands’ loyalty programs.”
The full 2025 U.S. Tipping Point report is available for download here. A companion report exploring the Canadian loyalty market, The Tipping Point: Inside Canada’s Changing Loyalty Landscape, is also accessible at the same link.
