BackLoyalty runs deep in travel. Among U.S. travelers, 77% are currently enrolled in a loyalty program. It’s no surprise, given that 8 in 10 view loyalty programs as critical when selecting travel destinations — let alone where they’ll stay or how they’ll get there. But with 30% of travelers now limiting program sign-ups, brands must work harder than ever to earn and maintain that loyalty.
That begs the question: What are the most effective member retention strategies for travel brands?
In today’s blog, we’ll explore actionable strategies for travel brands to exceed evolving customer expectations and build lasting loyalty in 2025 and beyond. From embracing customer-centric travel solutions to adopting engagement-boosting technologies, these insights help empower travel loyalty programs to strengthen connections, retain valuable members, and maximize long-term value.
The Importance of Member Retention Strategies in Travel
Retention has never been more critical for travel brands. At a time when customer bases naturally shrink by 22.5% annually, and another 20% of customers are lost due to neglected relationships, company profit and growth potential are under immense pressure. Not to mention, acquiring a new customer costs five to seven times more than retaining an old one, further straining the bottom line.
However, that doesn’t quite answer the key question on most decision-makers’ minds: Why is membership retention important for travel companies in 2025? For one, it takes far more resources to convert a new lead versus retain an existing member — think marketing, sales, and onboarding efforts, areas which 71% of CMOs already cite an insufficient budget as a roadblock to achieving goals.
There’s also a delay before new members start contributing to profits, during which it’s difficult to upsell or cross-sell like you would with existing members. Seeing that U.S. consumers belong to nearly 18 loyalty programs but only actively participate in half of them, customer retention in travel loyalty programs is essential to staying top-of-mind, turning profit, and fostering lasting brand loyalty.
Leverage Data for Personalized Travel Experiences
Nearly one-third of global consumers want loyalty programs tailored to their preferences. Fortunately, this presents an opportunity to transform travel loyalty programs into powerful tools for deeper engagement. Using data to personalize experiences — like rewards, offers, and itineraries — can turn one-size-fits-all programs into meaningful membership benefits for travelers.
But how can travel brands personalize member experiences to boost loyalty? One way is by using predictive analytics to anticipate when members might disengage. These insights allow brands to deploy proactive tactics, such as exclusive offers for high-value customers, rather than reactive ones. Audience segmentation based on data-driven preferences and travel habits also ensures perks feel relevant, which is the key to member retention strategies that keep members engaged and returning for more.
Here are a few examples of how data can create personalized travel experiences:
- Tailored Offers: Surprise members with deals based on their favorite destinations or frequently booked services, like a complimentary massage at their go-to hotel.
- Customized Itineraries: Recommend activities and travel plans that match their previous searches, past trips, or hobbies — like winery tours for food and wine enthusiasts.
- Flexible Loyalty Rewards: Let members choose rewards that fit their lifestyle, such as free upgrades for luxury travelers or theme park tickets for families.
- Dynamic Pricing: Offer personalized point conversion rates for flights, hotels, or activities that adapt to demand, ensuring members always see value in their rewards.
By leveraging data to craft experiences that feel personal, brands can craft stronger connections that ultimately retain their members.
Offer Relevant Membership Benefits for Travelers
While personalization leads the pack for effective member retention strategies in travel loyalty programs, it’s far from the only tactic. A May 2023 survey revealed that a lack of relevance is the leading factor for brands failing to engage and, ultimately, retain their customer base. Yet, relevance doesn’t rely purely on personal preferences — it’s also based on travel industry trends for 2025.
Sustainable Travel Membership Benefits
Sustainability is no longer a buzzword; it’s a deciding factor for brand loyalty. Research shows that 55% of consumers would choose one travel loyalty program over another if it prioritizes sustainability, with Millennials and Gen Z leading the charge. Co-branding opportunities with eco-conscious companies—like tree-planting initiatives or carbon-offset programs—can offer sustainable membership benefits for travelers that demonstrate your brand’s commitment to greener travel.
Reimagined Cruise Travel Opportunities
Cruises are riding a wave of popularity in 2025, with 73% of first-time passengers considering their debut voyage and 85% of experienced cruisers eager for their next. Exclusive cruise perks, such as early boarding, last-minute deals, or loyalty-exclusive packages, could redefine membership benefits for today’s travelers. After all, nearly half of travelers said they’d sail away immediately if they spotted a great last-minute deal.
Flexible Cashback on Travel Purchases
Travel trends come and go, but cashback reigns as the king of member retention strategies, with nearly 70% of consumers calling it the most valuable reward. It’s easy to see why: 76% of travelers say they couldn’t imagine their trips without loyalty program perks. Flexible cashback not only helps members afford their next getaway but also keeps your brand top-of-mind for future travel plans.
Enhance Customer Engagement Through Technology
Ongoing engagement is vital to retention; when members go dormant, their loyalty often disappears with them. With 76% of global travelers appreciating apps that reduce stress, technology has become a cornerstone of travel customer engagement strategies. From AI to chatbots, technology creates seamless member experiences that keep them connected at every stage of their journey.
Real-time engagement tools like mobile apps, digital wallets, chatbots, and augmented reality (AR) empower customer-centric travel solutions. These innovations simplify rewards, personalize experiences, and encourage loyalty by meeting travelers wherever they are — online, on their phones, or even on the go. It’s a winning formula for customer retention in travel loyalty programs.
Customer engagement technology that is paving the way for impactful member retention strategies includes:
- AI-Powered Recommendations: Suggest personalized travel itineraries, hotel stays, or activities based on past behavior and preferences.
- Digital Wallets: Let users earn and redeem rewards automatically, access exclusive travel offers, and pay securely with a tap.
- Chatbots: Provide 24/7 customer support to resolve booking issues, recommend upgrades, or offer reminders about program benefits.
- Augmented Reality (AR): Overlay maps with destination details or animate historical sites to make trips more interactive and memorable.
Measure and Optimize Customer Lifetime Value (CLV)
To ensure member retention strategies are actually working, measuring customer lifetime value (CLV) is essential for gauging progress. Travel brands should track key metrics such as average purchase frequency, total spending over time, and reward redemption rates. By analyzing this data, companies can identify high-value members and pinpoint behaviors that contribute to retention rates, such as frequent bookings, early renewals, and regular engagement with loyalty rewards.
How can travel brands measure and improve customer lifetime value (CLV)? Start by tracking engagement data like purchase patterns, renewal rates, and reward usage to understand each member’s value. Improving member lifetime value involves incentivizing behaviors that drive long-term loyalty, such as offering personalized travel experiences or exclusive perks for frequent engagement. By continuously optimizing membership loyalty tactics, travel brands can maximize long-term value.
Future-Proof Membership Retention Strategies with arrivia
In today’s increasingly competitive travel market, where consumers are selective about which loyalty programs they join and continuously engage with, member retention strategies are non-negotiable. Not only does solid customer retention in travel loyalty programs save money, but it also boosts long-term revenue — turning loyal customers into your most valuable assets.
Now is the time to explore customer-centric travel solutions for membership loyalty, and no provider offers a more reliable product suite than arrivia. As the world’s largest stand-alone travel loyalty provider, arrivia offers your members the flexibility and options they want, with a competitive global travel portfolio that can be curated to meet your customer’s unique preferences.
Ready to elevate your travel membership retention? Learn how arrivia helps travel brands build lasting loyalty today.
