Guest Post: In a transactional travel market, loyalty still wins

Sarah Capjon, product lead at Forge Holiday Group, explains lessons to be learnt

Price matters more than ever in travel. Rising costs and economic uncertainty have made travellers more selective, more deal-driven, and more likely to compare every option before they book.

It’s tempting to think loyalty no longer matters - but it’s not dead, it just looks different.

Today’s loyalty isn’t about points schemes that take years to pay off. It’s about clear, immediate benefits and a frictionless digital experience. When budgets are tight, a smooth, reliable experience and tangible rewards can tip the scales in favour of returning to a brand you know.

From points to personalisation: the evolution of loyalty

Traditional points-based schemes build loyalty over years, but in today’s digital-first market, customers expect instant, transparent value. Long-term accumulation no longer motivates behaviour in the same way. Instead, loyalty has shifted towards immediacy, where benefits must be accessible in the moment, not months down the line. Simplicity is just as important, with clear tiers and intuitive redemption a key element of today’s successful schemes. 

Equally crucial is integration. Loyalty can no longer sit outside the core booking experience - it has to feel embedded into the digital journey. The success of Sykes’ Bloom loyalty scheme illustrates this clearly: discounts and app-exclusive rewards are visible from the start, seamlessly built into the app’s flow. Simplicity and timely savings have helped us attract 100,000 members in just six months, with app users now twice as likely to rebook compared with web-only customers.

Lessons from inside and outside travel

Within travel, we’ve already seen how different brands are rewriting the rules of loyalty. Booking.com’s Genius tiers offer guaranteed discounts and perks that appear automatically - loyalty here is less about effort and more about effortless benefit.

The lessons are reinforced outside the sector too. Starbucks Rewards thrives not because of its points but because ordering, paying and redeeming benefits all happen within a single digital journey. Amazon Prime builds stickiness not through discounts but through bundled convenience - one subscription that eliminates friction across shopping, streaming and delivery. Together, these examples show that loyalty becomes powerful when it is woven into the everyday experience rather than layered on top of it.

Technology as the loyalty engine

Digital design is another important battleground for loyalty. Customers don’t want to be persuaded to be loyal; they want the path of least resistance. Apps that allow offline access to itineraries, predictive search tools that surface the right options quickly, and integrated chat functions that cut customer service wait times all reduce friction and keep travellers coming back.

Artificial intelligence and data science are also reshaping expectations. Personalised offers based on browsing history and AI-powered trip recommendations are raising the bar for convenience. The brands that fall behind on these innovations risk losing loyalty not because their rewards aren’t appealing, but because the experience itself doesn’t keep pace with competitors.

Beyond discounts: the rise of values-driven loyalty

Not all loyalty is transactional. Increasingly, travellers are returning to brands because they reflect personal values. Sustainability is one of the strongest drivers. Operators like Intrepid Travel have seen repeat bookings grow as they foreground carbon reduction, ethical supply chains and community-led tourism. For a growing audience, returning to a trusted, sustainable provider feels like an investment in their own principles as well as their holiday.

That’s why Forge is heavily investing in its impact programme, including supporting important UK biodiversity projects, opening up free holidays to disadvantaged families and cutting carbon across the business.

The future: loyalty as a by-product, not a programme

The lesson is clear: loyalty is no longer a standalone programme, it’s a by-product of a well-designed digital journey. The brands that will win are those that:

1. Remove friction – by focusing on speed, simplicity and convenience within the digital journey
2. Make loyalty visible – customers should see and feel benefits instantly
3. Use data intelligently – personalisation driven by AI that feels helpful, not intrusive
4. Connect with values – giving customers a reason beyond price to come back

In a market where price will always be a major factor, these elements tip the scales towards long-term relationships. When brands get that balance right, they don’t have to fight for loyalty. It happens naturally.