Why Travel Rewards Are Now a Must-Have for Loyalty Success

This sponsored content was created in collaboration with a Skift partner.

In today’s loyalty landscape, maintaining a strong travel rewards offering is essential for any brand looking to gain a competitive edge. Travel rewards are one of the most sought-after loyalty program offerings because of the emotional connections travel creates for consumers of all ages. Unlike traditional loyalty rewards, like cash-back or product discounts, travel rewards are tied to unique, unforgettable experiences.

As a result, consumers now see travel perks as a fundamental expectation instead of an optional extra. According to research by Expedia Group, 85 percent of leisure travelers seek to book various trip elements and shop with travel brands using rewards.

“As brands aim to maintain competitiveness in their respective sectors, they are increasingly leveraging travel’s universal appeal to rise above the noise and drive deeper engagement and loyalty with consumers,” said Alfonso Paredes, president of Private Label Solutions at Expedia Group.

What’s more, consumers expect to be able to receive travel perks from travel-related businesses and non-travel companies alike. According to Arrivia’s 2024 Travel Loyalty Outlook Report, 95 percent of brands now offer travel rewards within their loyalty programs, a 20 percent increase since 2021. Additionally, 84 percent of loyalty programs provide travel booking capabilities, up 23 percentage points since 2021. 

SkiftX spoke with Paredes about the importance of integrating travel into loyalty programs of all kinds, the challenges of realizing that collaborative vision, and the opportunity it presents for brands within and beyond the travel industry.

Technology Powers Modern Brand Experiences — But It Can Be Costly

Today’s brands know seamless technology is the cornerstone of great customer experiences. But, according to Loyalty360, 67 percent of loyalty providers say tech integration and management is a significant challenge. “Tech is costly and time-consuming for brands to implement on their own,” Paredes said. “It takes brands years to gain program loyalty. Integrating technology or adding new offerings shouldn’t take that long.” 

To overcome this hurdle and build effective, tech-enabled loyalty programs, brands must partner with credible technology leaders.

“When it comes to building a well-rounded loyalty program, I like to tell partners they should build a roundtable of experts and save the travel seat for us,” Paredes said. 

Expedia Group Private Label Solutions meets that need by powering more than 60,000 businesses around the world with industry-leading technology. Its automated solutions allow supply partners to supercharge their loyalty programs by extending their reach, increasing visibility among high-value travelers, and accessing new markets. According to Paredes, 30 percent of Expedia Group’s business-to-business bookings come from partner loyalty programs.

Consumers Demand Flexibility From Their Loyalty Programs

As modern loyalty programs continue to evolve, another factor that consumers have come to expect is flexibility. Redeeming points for a variety of purchases, transferring points across multiple travel partners, and earning additional rewards to drive more value are all table stakes today. Loyalty providers are taking note: 56 percent of brands want to introduce new ways to earn and redeem loyalty points, up from 47 percent in 2021. 

Private Label Solutions allows partners to seamlessly introduce flexible earning and redemption options. For example, its White Label Template lets travelers easily switch between cash and points pricing throughout the booking journey.

Another example is Expedia Group’s Rapid API solution and evolving partnership with Microsoft Bing. The two companies recently collaborated to offer travelers additional rewards through both of their loyalty programs. In addition to earning Microsoft Rewards, travelers booking eligible accommodations on Bing Travel also earn rewards through Expedia Group’s brands, including its One Key travel rewards program in the U.S. and the UK. 

Customer Service Should Never Suffer From Scope Creep

The more loyalty programs grow, the more challenging it is to sustain exceptional customer service. Complex procedures lead to more nuanced customer questions — and higher member numbers likely mean more queries and calls. That’s why 26 percent of brands said their biggest loyalty challenge is maintaining customer service levels, up five percentage points from 2021.

To tackle this challenge, Private Label Solutions offers a wide range of options, combining the core principles of technology and flexibility to provide top-quality customer support. Partner brands can implement self-service options, virtual agent support, and global multilingual contact centers. 

Seventy percent of self-service customer support is now handled through highly efficient, AI-powered virtual agents. That makes it easier for brands to triage inquiries that require a human touch: 90 percent of travelers now connect directly to support within 30 seconds.

“This allows brands to offer a more personalized experience, reduce friction, and ensure a smooth, hassle-free journey for their customers,” said Paredes. “In turn, many of our partners choose to co-brand with us to show Expedia powers their travel platform because we’re so trusted by consumers.”

Private Label Solutions Pairs Expedia Group’s Robust Global Inventory With World-Class Technology

For non-endemic brands, integrating travel rewards into existing programs promises to drive customer engagement and boost brand loyalty. 

In 2023, Private Label Solutions partnered with Walmart to launch Walmart+ Travel via its White Label Template, which gave Walmart+ members the opportunity to book getaways and earn Walmart Cash. Since its launch, Walmart has seen great engagement among Walmart+ members, particularly during events like their 2024 Walmart+ Week, where Expedia Group offered bonus earnings on travel bookings. This partnership is a prime example of how travel can be seamlessly integrated into an existing membership program, enhancing value for members while driving engagement.

Moreover, Expedia Group provides unparalleled scale and reach for non-endemic brands — and their customers — offering access to more than 900,000 properties, 500 airlines, 200,000 activities, and 100 car rental companies. Their results speak for themselves. In 2023, Private Label Solutions powered over 100 million room nights and delivered $25 billion in lodging gross booking value, totaling 35 percent year-over-year growth.

“As we look to the future, one thing is clear,” Paredes said. “Integrating travel rewards isn’t just a trend — it’s a critical opportunity for brands across all sectors to stand out and win consumers. By offering cutting-edge technology and industry-leading inventory, Expedia Group ensures brands deliver unmatched travel rewards to their customers.”

To learn more about how Expedia Group Private Label Solutions is supercharging rewards programs through travel, click here.

This content was created collaboratively by Expedia Group and Skift’s branded content studio, SkiftX.