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Growing Loyalty Programs Mean More Travelers Competing for Perks
By Sean Cudahy 
Friday, 28th July 2023
 

If you thought it's been harder to get upgrades or lounges have been more crowded lately, you're not alone.

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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, according to a 2022 study.

And travel rewards programs are growing especially fast. Earlier this year, American Airlines reported first-quarter enrollments in its AAdvantage frequent flyer program were up 60% compared to pre-pandemic 2019. United Airlines said sign-ups for its co-branded credit cards were up 30% year-over-year. And Hilton reported membership in its Hilton Honors program grew at a 60% clip compared to last year.

What’s behind the explosion? One reason could certainly be the continued, heavy demand for travel in the face of inflation.

“I think people want to stretch their dollars further,” says Marcus Collins, a clinical professor in marketing at the University of Michigan’s Ross School of Business.

But this growth in travelers getting savvy with points, perks and credit cards also means more competition among consumers for many of the programs' ever-changing benefits. It’s a phenomenon that begs the question: With more travel loyalty members than ever, how do you get ahead?

Why are more people joining loyalty programs?

Not only do customers want to save money on travel, but companies are giving them incentives to join, too.

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