BackExpanding Customer Engagement Beyond Discounts
Retail loyalty programs have long relied on price reductions to keep customers engaged, but consumers today expect more than just savings. In an era of declining brand loyalty, companies must rethink their strategies—and travel rewards could be the missing piece.
Arrivia’s latest study, Travel Rewards in Retail: An Overlooked Strategy for Building Stronger Loyalty, surveyed over 1,000 U.S. consumers to gauge their interest in travel-based incentives within retail loyalty programs. The results suggest a significant opportunity for retail brands to deepen customer engagement and drive long-term value.
The Demand for Travel Rewards is Growing
A striking 75% of respondents indicated they would be likely to book travel through a loyalty program if given the option. Nearly half (49%) said access to travel rewards would make them much more engaged with their preferred retail loyalty program.
This enthusiasm aligns with broader consumer behavior. Travel remains a top spending priority, with 84% of global travelers planning to maintain or increase their travel budgets in 2025. For retailers, integrating travel rewards could provide a compelling reason for customers to stay loyal, even as economic concerns persist.
Aligning Rewards with Consumer Preferences
The survey identified key demographics most interested in travel rewards: Millennials and Gen Z, who prioritize experiences over material goods, and families with children, who value cost savings on travel. Additionally, frequent travelers were more likely to engage with programs offering a broad selection of travel options, flexible payment methods, and opportunities to redeem points for travel-related purchases.
Some retail categories stand to benefit more than others. Luggage and outdoor brands, for example, already cater to travel-minded consumers, making travel rewards a natural extension of their loyalty programs. Among respondents, 89% of luggage buyers and 66% of outdoor enthusiasts expressed strong interest in using travel rewards, indicating a direct path to increased engagement and repeat purchases.
An Upgraded Approach for Retail Loyalty programs
Retailers looking to enhance their loyalty programs must consider more than just discounts. Personalization and convenience matter. Nearly 40% of surveyed consumers said they would be more likely to book travel through a loyalty program if they had access to better pricing, flexible payment options, and exclusive travel opportunities.
Additionally, loyalty programs that incorporate travel rewards can serve as a powerful differentiator in a crowded retail landscape. Retailers can strengthen their customer relationships by curating travel benefits that align with their brand values, whether that means offering discounts on eco-friendly travel experiences, exclusive hotel partnerships, or bundled incentives for high-value purchases.
By leveraging technology, brands can create intuitive travel booking experiences that integrate directly into their existing loyalty programs. AI-driven recommendations, dynamic pricing models, and flexible redemption options can further enhance the value proposition for customers, ensuring that travel rewards are both accessible and compelling.
The Future of Retail Loyalty: A Call to Action
As competition intensifies, loyalty programs must evolve beyond transactional discounts. Travel rewards present a unique opportunity to create deeper connections with customers, offering experiences that go beyond price savings and tap into their aspirations.
Brands that hesitate to innovate risk losing valuable customers to competitors who recognize the power of travel rewards. Forward-thinking retailers should explore strategic partnerships, invest in loyalty technology, and develop travel reward programs that meet the diverse needs of their customer base.
For brands willing to embrace this shift, the rewards extend far beyond customer retention. Travel-based loyalty strategies can unearth new revenue streams, increase brand affinity, and position retailers as partners in their customers’ broader lifestyle journeys.
Discover the full insights on travel rewards and their impact on retail loyalty programs.
Download Travel Rewards in Retail: An Overlooked Strategy for Building Stronger Loyalty here.