In 2025, the market size of global Tourism Industry Loyalty programs was valued at USD 30 billion and is projected to reach USD 65 billion by 2035, at a significant CAGR of 8.1% over the forecast period. The increasing need for customized experiences, incorporating smooth digital interactions, and adopting AI-driven incentives are changing the market dynamics.
Top companies like Marriott Bonvoy, Hilton Honors and Delta SkyMiles are revolutionizing loyalty programs with blockchain-based solutions to streamline the redemption process, real-time customer engagement and more sustainable-focused options. The new players in emerging markets; the UAE, China and Brazil are utilizing data analytics and AI to optimize their customer loyalty strategies, which help improve retention rates and engaging the travelers more effectively.
Market Snapshot
| Attribute | Details |
|---|---|
| Current Global Tourism Industry Loyalty Programs Sector Size (2024A) | USD 28 Billion |
| Estimated Market Size (2025E) | USD 30 Billion |
| Projected Market Size (2035F) | USD 65 Billion |
| Value CAGR (2025 to 2035) | 8.1% |
| Market Share of Top Operators (2024) | ~55%-60% |
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As the world moves forward from the COVID-19 pandemic, travel loyalty programs were greatly affected, causing millions to lose program engagement and point redemptions. The market grew at a moderate CAGR of 5.4% between 2020 and 2024, as global travel recovered and flexible redemption policies were introduced.
By 2025, the market will grow to more than USD 30 billion, driven by AI-based personalization, blockchain-based point security, and alliances with fintech companies. Skywards (by Emirates) and American Express’ own Membership Rewards, both of which now feature crypto-based rewards and real-time spend analysis to supercharge the engagement of the traveler. Moreover, eco-friendly rewards such as carbon offset incentives, are becoming more popular among green tourists.
| Country | Active Loyalty Program Members (2024) |
|---|---|
| United States | 150 Million |
| China | 120 Million |
| United Kingdom | 60 Million |
| UAE | 45 Million |
| Brazil | 40 Million |
| Australia | 35 Million |
| India | 70 Million |
| Germany | 50 Million |
| France | 45 Million |
Personalized AI-Driven Rewards
AI is already reinventing the interaction between travelers and loyalty programs with precision, data-driven and personalized rewards. The customer behavior will be analyzed in real time to customize offers and experiences. For instance, Marriott Bonvoy’s artificial intelligence-driven system tracks booking behavior and dynamically alters the loyalty benefits, providing members with hotel upgrades or special deals based on previous visits.
Likewise, Delta SkyMiles employs AI to offer real-time mileage boosts, based on having created a profile of customers, their flight history and spending habits. Loyalty apps featuring AI-driven virtual assistants offer tailored travel recommendations and promotions, enhancing traveler engagement.
With developments in AI technology, reward systems will be honed ever more, keeping incentives relevant to travellers. By understanding the unique needs of the travelers, loyalty brands can build a closer bond between travelers and loyalty brands which leads to higher customer satisfaction and increased retention.
Blockchain-Powered Redemption Systems
It plays a transformative role in the development of loyalty programs, offering greater security, transparency, and flexibility in the reward process. For instance, Singapore Airlines’ KrisFlyer program has embraced blockchain-based secure wallets, offering travelers the ability to store and redeem points without the risk of fraud or misuse.
Fintech-led startups are creating decentralized ecosystems, in which travelers can redeem loyalty points without a hassle, across airlines, hospitality brands, and even ride-sharing services. This removes any intermediaries and administrative costs and ensures customers get the true value of the rewards. For example, firms such as Loylogic are embedding blockchain-enabled solutions that enable consumers to exchange miles for cryptocurrencies or gift vouchers.
With blockchain systems, point expirations and fraudulent transactions are no longer causes for disputes, leading to better customer trust. With the adoption of blockchain by more companies, loyalty programs will become interconnected reward ecosystems where points can be transferred seamlessly and securely between different industries.
Subscription-Based Loyalty Models
Companies are transitioning from traditional point-based rather than recurring income models to subscription-based loyalty programs. One such service would be Amazon Prime Travel, which provides travel benefits including flight discounts and hotel perks for a set monthly fee, ensuring consistent customer engagement. At Hyatt, members pay an annual fee for Prive benefits that include priority check-ins, room upgrades, and free meals.
Through subscription-based loyalty programs with instant, time-sensitive perks that require little activity on the customer side given the high frequency usage of the core service, cryptocurrencies are nothing like old-school models where the actual reward is minimal compared to the time invested in the use of the program.
These programs specifically cater to business travelers and high-value customers looking for exclusive perks without the limitations of earning points. Businesses drive revenue through predictable deviations and victories through customer loyalty by weaving premium into loyalty.
As convenience and exclusive experiences become a priority for travelers, subscription-based loyalty programs will continue to evolve, effectively merging with traditional rewards systems to create a hybrid model that more effectively meets the varied needs of their travelers.
Sustainable Loyalty Incentives
One such emerging concept is sustainability-based loyalty programs that reward eco-conscious choices. Lufthansa’s Green Fares program, for instance, incentivizes customers to choose lower-carbon flights by giving them extra points for making decisions motivated by sustainability. Guests who participate in the green initiatives - for example, reuse their towels and choose digital check-ins instead of paper ones - get bonus points, Hilton Honors says.
Others bundle in carbon offsetting, allowing travelers to redeem points for solutions like reforestation or renewable energy projects. Members of Marriott Bonvoy, for example, are able to donate their points towards carbon offset projects, supporting sustainability initiatives within the travel industry.
As consumers become more eco-minded, companies that incorporate green initiatives into loyalty rewards systems will boost their brand reputation and win over eco-friendly travelers. This means that sustainable incentives are likely to drive more loyalty program innovation in 2022 and beyond, supporting not only business growth but also ecological and social responsibility.
Future Outlook: Trends Shaping the Next Decade
| Factor | Impact on Loyalty Programs |
|---|---|
| AI-Driven Personalization | Enhancing customer engagement and retention |
| Blockchain-Based Security | Ensuring transparent and fraud-proof point systems |
| Digital Wallet Integrations | Streamlining point accumulation and redemption |
| Subscription-Based Loyalty Models | Providing steady revenue streams and premium experiences |
| Sustainability Incentives | Encouraging eco-friendly travel behaviors |
The most common format in Tourism Industry Loyalty programs is the point (or reward) based program that is being used due to the program flexibility, familiarity, and ability to retain customers. These programs allow travelers to earn points for purchases made on air travel, hotel accommodations, and other travel-related expenses and use the accruable points to pay for free services, upgrades, or discounts.
Top-tier airlines, including Delta SkyMiles and Emirates Skywards, have successfully applied point-based models to improve customer retention and spur repeat bookings. The power comes from the fact that airlines reward us with miles for every mile that we fly, so they are giving us what we want - the ability to roam and travel - while also incentivizing us to spend more money at the same time.
In the hospitality industry, Marriott Bonvoy had Hilton Honors have mastered point-based rewards by offering things like free nights, exclusive experiences and upgrades to swankier accommodation. The beauty of these programs is they create long-term customer engagement simply by making travelers feel that they’re getting far more value out of participating in these programs than what they put in.
These point-based programs also tie in naturally with financial services. Co-branded credit cards from places like American Express, Chase and Citibank allow travelers to rack up points through everyday spending, creating more access and creation in these loyalty programs. Customers can earn points not just through those purchases, but also through other travel, dining, shopping and partner programs.
Digital transformation has also made point-based programs more bite-sized through real-time tracking, personalized offers, and instant redemptions. AI-powered algorithms also analyze traveler behavior, enabling companies to provide tailored promotions and time-sensitive point-enhancing opportunities. Now secured by blockchain technology, transactions and cross-platform point conversions are only gaining in transparency.
As competition in the travel sector continues to grow, point-based programs will also remain as an important tool for customer retention and engagement. The travel and tourism sector, being a repeat-purchase sector, will keep its significant loyalty share expanding as these new entries ramp up.
Reap the rewards of travel Loyalty programs are built on the backs of frequent fliers; they produce revenue for airlines, hotels and travel-related businesses. High-performing customers prioritize convenience, special rewards, and easy travel, making them a perfect target audience for loyalty program operators.
Airlines like Delta and Emirates serve the top segment as they have elite status tiers in their loyalty program, allowing for premium benefits including priority boarding, lounge access and free flight upgrades. Tangible rewards are received with frequent flyer miles, and these programs are designed to encourage advances through loyalty to a specific brand and a repeat journey.
Hotel chains use frequent travelers to turn a profit, too. Both Marriott Bonvoy and Hilton Honors offer free stays and late checkouts to loyal guests and concierge services. Business travelers, who may be staying in hotels for at least one night multiple times a month, accrue this same volume of points and attain luxury experiences like penthouse suite upgrades and executive lounge access. Airlines extend these exclusive offerings to form closer ties with travelers, strengthening long-term loyalty.
And co-branded credit cards make the allure of loyalty programs even more tempting for frequent travelers. Cards from American Express and Chase are geared toward travelers and reward users with double and triple points on purchases for flights, hotel stays and meals.
Cardholders receive benefits like travel insurance, waived foreign transaction fees and complimentary elite status in hotel and airline programs. Combining Financial Incentives and Loyalty Rewards helps realize Continuous Value for Frequent Travelers
On top of that, tech-driven personalization builds engagement with repeat travelers. Loyalty apps powered by A.I. track users’ travel preferences, sending real-time recommendations about potential hotels, restaurants and flights based on past booki.. Delta’s AI-powered platform proposes optimized travel itineraries, and Hilton Honors personalizes offers on previous visits. With predictive analytics paired with rewards, travelers can experience engagement with a loyalty program and keep a seamless experience generated through predictive analytics in the future.
With travel rebounding post-pandemic, frequent travelers still represent one of the largest pools of revenue. The companies that will continue to win and hold on to this marketable segment, are those that invest in personalized experiences, streamlined reward redemption and tiered benefits.
These aspects have contributed to the USA's dominance globally in terms of Tourism Industry Loyalty programs, which can be attributed to the country's well-established transportation infrastructure, high consumer expenditure, and a broad range of hotel and airline loyalty schemes. Titans such as Marriott Bonvoy and Hilton Honors as well as Delta SkyMiles and American Express Membership Rewards own the market with the most features and best rewards transfer capabilities.
Unlike its competitors, Marriott Bonvoy partners with some of the best credit card companies such as Chase and American Express, meaning travelers can earn points on various spending categories. Priority room upgrades, VIP concierge services, and special access to luxury properties greet frequent business travelers. A similar strategy that builds loyalty for Hilton Honors encourages customers to use digital check-in, keyless entry, and AI-powered personalization of reward suggestions.
Within the airline industry, Delta SkyMiles stands out as a powerful player, offering loyal passengers Medallion Status tiers that grant free upgrades, access to Sky Club lounges and priority boarding. The program fits perfectly into its ecosystem via co-branded American Express credit cards that enable members to earn miles on everyday expenditures. United MileagePlus and American Airlines AAdvantage also have strong positions in the market, offering innovative redemption options, including experiences and point transfers into partner airlines.
At the same time, financial services companies steeped in loyalty have become even more entrenched. American Express Membership Rewards lets cardholders transfer points into airline miles, hotel stays and special travel benefits. Given the emergence of a number of digital payment integrations, Apple Wallet and Google Pay provide users with an instantaneous display of loyalty points that customers can redeem upon booking trailheads.
Through this competitive travel landscape, the USA government also encourages loyalty program growth. Like premium credit card perks, the Transportation Security Administration’s (TSA) PreCheck program and Global Entry initiative provide frequent travelers with faster airport security and immigration clearance.
But as the USA travel industry recovers, company loyalty programs are evolving, incorporating artificial intelligence-powered personalization, blockchain-integrated security and sustainability-minded perks into their offerings. The United States also remains the largest national market by both consumer spend and loyalty program breadth, driven by the market’s maturity, high adoption rates, and sustained investment in digital transformation.
The United Kingdom boasts a tourism loyalty program that is second only to the United States, with an airline and a hospitality industry focused on customer retention. British Airways Executive Club is one of the forerunners of airline loyalty and awards members with Avios points, allowing travelers to cash in for flights, seat upgrades and hotel stays. Members can enjoy more rewards worldwide through the program’s vast partner network, which includes Iberia and Qatar Airways.
In the UK, the hotel loyalty landscape is just as competitive, with IHG Rewards and Accor Live Limitless (ALL) capturing a share of the market. Travelers choosing IHG Rewards, covering chains such as InterContinental and Crowne Plaza, can benefit from exclusive rewards like early check-ins and free suite upgrades. Accor Live Limitless also appeals to the upper echelon of travelers with its to blend hotel perks with exclusive cultural activities, and VIP access to concert and sporting events.
Banks are an important segment of the UK’s loyalty program landscape. The American Express Preferred Rewards Gold Card is a great way for travelers to earn points on everyday purchases that can be converted into Avios, Virgin Atlantic Flying Club miles or hotel stays. Barclaycard, for example, also partners with Hilton Honors and Emirates Skywards, offering co-branded credit cards to drive further customer engagement.
For example, the UK government encourages the adoption of travel loyalties through initiatives like the Registered Traveller Service, which allows regular international travelers to pass through borders more quickly. There are also sustainable tourism initiatives, including BA’s Carbon Offset scheme, which rewards passengers with points for selecting lower-emission travel alternatives.
As Businesses speed up digital transformation, UK based loyalty programs are combining AI-fueled personalization with blockchain-backed rewards. Businesses that focus on facilitating easy redemption and customer-first incentives will be employees of innovation in this dynamic ecosystem.
The global Tourism Industry Loyalty programs market is majorly fragmented, and the key players have used various strategies such as new product launches and regional expansion to enhance their presence in this market. Established players like Marriott Bonvoy, Hilton Honors, Delta SkyMiles and Emirates Skywards solidify their market position via a cycle of improvements to their rewards offers and growth of co-branded partnerships.
Take Marriott Bonvoy, for example, which works with American Express to issue premium credit cards that reward members with higher points earning rates, elite status perks, and travel experiences exclusively available to cardholders.
Traditional loyalty models are being disrupted by new entrants and startup solutions built around decentralized and scalable loyalty reward systems. Blockchain-based loyalty programs like Stash Rewards and Revolut Travel Rewards allow users to consolidate their points across different travel brands, which decrease fragmentation in the system. They give travellers more flexibility and enable them to redeem rewards without restrictions tied to a single brand, which makes these innovative models more attractive.
Data-driven engagement for greater customer retention has also become priority for airlines and hotels. Delta SkyMiles uses AI-driven analytics to monitor spending patterns and provide dynamic, real-time reward incentives. Hilton Honors, for instance, applies machine learning to determine which redemption offers will be available, based on previously observed preferences of each guest, thereby ensuring optimal customer satisfaction.
Additionally, the popularity of digital wallets like Apple Wallet and Google Pay integrations has made it even easier for customers to track and redeem loyalty points, enhancing customer engagement.
While the well-known players are consolidating the market, regional loyalty programs flourish due to addressing niche customer segments. In Asia, Singapore Airlines’ KrisFlyer and the Alibaba-backed Fliggy Loyalty have made their mark with region-specific rewards and exclusive partnerships across brands. Likewise, Middle Eastern airlines like Qatar Airways Privilege Club lure high-net-worth travelers with luxury perks like chauffeur-driven transport and VIP airport lounges.
As the landscape matures, competition will also become fiercer, compelling organizations to embrace AI-driven personalization, blockchain-based security, and integrated multi-brand reward programs. The competitive edge will continue to lie with those players investing in leveraging digital proliferation and customer-centric loyalty strategies within the increasingly competitive mini market of Tourism Industry Loyalty programs.
Recent Developments in the Global Tourist Loyalty Programs Market
| Attribute | Details |
|---|---|
| Forecast Period | 2025 to 2035 |
| Historical Data Available for | 2020 to 2024 |
| Market Analysis | USD Billion for Value |
| Segments Covered | Program Type, Traveler Profile, Region |
| Key Companies Profiled | Marriott Bonvoy, Hilton Honors, Delta SkyMiles, American Express Membership Rewards, Emirates Skywards |
The market is valued at USD 30 billion in 2025 and is projected to surpass USD 65 billion by 2035, growing at a CAGR of 8.1%.
Rising demand for AI-driven personalization, blockchain-based security, sustainable travel incentives, and the shift toward subscription-based loyalty models are fueling market expansion.
North America, Europe, and Asia-Pacific lead the industry, with the USA, China, UAE, and India driving innovation in digital-first and experience-based loyalty rewards.
Blockchain-secured point transactions, AI-powered customer engagement, real-time redemption analytics, and digital wallet integrations are revolutionizing loyalty program operations.
Leading programs incorporate sustainability incentives such as carbon offset rewards, eco-friendly hotel partnerships, and green travel promotions to attract environmentally conscious travelers.
Top operators include Marriott Bonvoy, Hilton Honors, Delta SkyMiles, American Express Membership Rewards, and Emirates Skywards.
Challenges include data privacy regulations, point devaluation risks, and competitive differentiation. Companies are responding with enhanced digital security, dynamic rewards systems, and personalized customer engagement strategies.
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Tourism Industry Loyalty Programs Market
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