Loyalty programmes are not what they used to be. The cookie-cutter format is fast replacing a more personalised and tailor-made rewards programme – both for travellers as well as agents. Done right, these programmes can not only bring in more business but can actually retain customers – something that they were created to do in the first place.
TT Bureau
Indians are always looking to maximising value while travelling. The American Express 2025 Global Travel Trends Report reveals that 79 per cent of Indians are planning to use rewards points for leisure travel (such as for flights, hotels and car rentals) in 2025. It adds that 84 per cent of Indians surveyed believe combining credit card rewards with other loyalty programmes provides the best value for international trips, and 50 per cent are linking their credit cards to dining partners in addition to everyday expenses.
Loyalty programmes have become a key part of how Pratik Shah, Founder, APS Destinations, and India Travel Awards 2024 winner, plans both his own travel as well his clients’. “Over time, I have learned that points are not just for free flights or hotel stays—they can unlock real value when used smartly. I often use points for upgrades to business class, unique hotel experiences, or even luxury train journeys and private transfers. Sometimes, saving points for fewer—but more meaningful—redemptions bring the best rewards.” He encourages clients to focus on one airline alliance and one hotel group, and to use co-branded credit cards that help them
earn faster.
Timing matters too, Shah says, and booking during promotions or when availability is high can make points go further. “I also help clients stack benefits, combining points with elite perks or special offers. Personally, I have used points to fly business class on long-haul routes, access premium airport lounges, and enjoy room upgrades. It’s not just about saving money—it’s about enhancing the journey,” he adds.
Speaking about reward programmes that many hotel chains offer for travel agents, Shah explains that Marriott’s ‘Hotel Excellence!’ gives agents discounted rates after certification. Hilton and IHG also offer special agent rates and commissionable bookings. “Luxury programmes like Hyatt Privé, Four Seasons Preferred Partner and Accor’s STEP don’t offer points but provide VIP client benefits like upgrades and credits, helping agents build repeat business. Small Luxury Hotels (SLH) and Preferred Hotels have portals with agent incentives and seasonal bonuses. Consortia like Virtuoso and Signature also include perks, higher commissions and exclusive offers. These programmes reward agents with discounted stays, Fam trip invites and added-value benefits for clients,” Shah adds.
Creating one’s own programme
A few travel agents have also started thinking of creating their own loyalty programme for their clients. Chennai-based Manish Kriplani, Managing Director, BayWatch Stayzz, and India Travel Awards 2024 winner, says, “With so many options available, retaining clients requires more than just good service—it requires giving them a reason to return. Loyalty programmes do just that by rewarding repeat business and encouraging referrals. Even budget carriers like IndiGo, despite having a dominant market share, have introduced their own loyalty initiatives. We believe that offering rewards and appreciation not only helps retain customers but also strengthens our brand’s relationship with them over time.”
Using guest data to tailor rewards
But loyalty programmes have evolved far beyond traditional, points-based systems. Today, they are about building meaningful guest relationships through personalised experiences and seamless digital integration. Amitava Saha, General Manager, Anjushree Hotel, says that their focus is now on using guest data to tailor rewards and understand guests’ preferences to create a deeper emotional connection. “As the hospitality landscape becomes competitive, loyalty programmes are shifting toward offering more experiential, memorable and tech-enabled solutions that enhance guest satisfaction. Moving forward, we plan to explore new ways to further enhance our programme’s impact,” he adds.
AI-powered loyalty programmes
The future lies in AI-powered loyalty programmes that go beyond generic discounts, says Hari
Ganapathy, Co-Founder, Pickyourtrail. “These systems can use traveller behavior and preferences to offer meaningful value—curated deals, early access, contextual offers and concierge-like experiences. Unlike subscriptions, which do not always fit the infrequent nature of travel, AI-based loyalty can deliver relevance without asking for upfront commitment,” he says.
Pickyourtrail’s programme is called PYT Coins—a system designed to reward regular travellers. “These programmes also help us build long-term relationships while nudging conversions for new users by giving them a tangible reason to return or complete their first trip. The most effective way to use PYT Coins is through wallet-based discounts. Customers can accumulate these pointers and redeem them,” he adds.