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Travellers have been racking up miles, seeking elite status and pouring their airfare savings into brands that offer the most perks, but sticking with a single airline, hotel or rental car program comes with built-in limitations. Image Credit: Shutterstock

Ever since the first frequent-flyer programs in the late 1970s and early 1980s, travellers have been racking up miles, seeking elite status and pouring their airfare savings into brands that offer the most perks. Yet sticking with a single airline, hotel or rental car program comes with built-in limitations.

“Being loyal to a brand when travelling means narrowing one’s comparison shopping, for one thing, which can effectively increase prices,” explained Sophia Sanchez, travel planning manager at a UAE-based European tour operator.

“A person who’s loyal to an airline or hotel brand might pay more for a flight on the airline in order to earn miles and status. So it’s always financially prudent to evaluate whether the trade-off is worth it. It has to be a really lucrative for you to fly with another airline or stay at the same hotel.”

Big payoffs for big spenders
Experts have often flagged how travel brands maintain their loyalty programs to attract big spenders, particularly business travellers. To this end, loyalty programs will lavish benefits on travellers in proportion to how frequently they travel (and how much they spend).

While this might sound simple, Dubai-based travel advisor and itinerary consultant Richa Dev, further noted how the value of these programs for ultra-frequent travellers are disproportionately relative to leisure travellers.

For example, a traveller with the entry-level status will get about $2 back (Dh7.35) in value for every $100 (Dh367) they spend, according to a NerdWallet analysis, while someone with the eleite-level status will get about $49 (Dh180) in value for every $100 (Dh367) they spend.

Who should bother with travel elite status programs?

“Navigating the miles-for-status trade-offs is fraught for semi-frequent travellers, who may not travel enough to earn high-level elite status perks, but still want to earn and use miles,” added Sanchez, who has been in the industry for over three decades.

“Collecting a few hundred points from a smattering of loyalty programs might be more trouble than its worth, yet sticking with one program can limit travel options. This is why it helps to decide whether going monogamous with a travel brand makes sense.”

So do only frequent business travellers bother with travel elite status programmes? “Semi-frequent travellers who take a few trips per year might see some benefit from loyalty, but these perks are often offset by the cost of limiting one’s choices,” said Dev.

When being loyal to brands while travelling won’t pay off

Sanchez puts it very simply when asked the same question. “It takes a lot of short flights to even reach the lowest rung of the ladder. So you may be foregoing cheaper — and quite possibly better flights — for the potential of a reward in the future,” she explained.

“Because the perks are so valuable for very frequent travellers, it almost always makes sense for them to maintain some travel loyalty, even at the cost of convenience. And sticking with a single brand might make you miss the most magical aspect of travel — the unexpected.”

However, spending on travel brand loyalty programs can make a lot of sense under certain circumstances, especially if you’re a frequent traveller or have specific goals in mind, like getting upgrades, earning rewards, or enjoying exclusive perks.

When not to invest in loyalty programs
Occasional Travelers: If you don't travel often, the benefits of a loyalty program might not be worth the cost of membership or the time spent accumulating points. In this case, it might be better to choose the best deals or the most convenient option without worrying about a loyalty program.

One-time Bookings: If you're only booking a trip once every year or so, loyalty points might not accumulate fast enough to justify membership. Additionally, some loyalty programs have annual fees or require a certain level of spending to gain benefits.

Competing Programs: If you're traveling to destinations where you have no loyalty with the brands, or if there are competing programs offering better benefits for your needs, it may not make sense to tie yourself to a single program.

When else does it make sense to be loyal to a travel brand?

If you're a frequent traveller, whether for business or leisure, investing in a loyalty program can pay off. Brands like airlines, hotels, or car rental companies offer rewards for every booking or stay, and these can accumulate quickly.

“Over time, the points or miles earned can lead to free flights, room upgrades, or even elite status that offers further perks. Many travel brands offer tiered loyalty programs where frequent customers earn elite status like silver, gold, platinum, etc.,” added Dev.

“Higher tiers unlock premium benefits, such as access to airport lounges, priority check-in, extra baggage allowance, room upgrades, and personalized service. If you're able to reach a high enough tier to gain access to these benefits, the value far exceeds the cost of loyalty membership or spending.”

Plan to redeem points or miles for future travel? Then loyalty helps

Sanchez further explained that if you plan to redeem points or miles for future travel it can make sense to focus your spending on one or two loyalty programs to maximise the rewards. For example, amassing miles with an airline can allow you to book free or discounted flights at sales or promotions, she added.

“Some programs also allow you to transfer points to hotel or car rental partners, expanding the utility of the rewards. Loyalty programs often offer exclusive perks that make travel more enjoyable and less stressful.

“This can include things like early boarding, free breakfast, spa discounts, or even late check-outs. These perks are especially valuable if you travel frequently or if you prefer to have a seamless, stress-free experience.”

Bottom line?

Spending on travel brand loyalty programs makes sense if you travel regularly, value perks like upgrades and priority services, or plan to maximise points and miles for future travel. But if you don’t travel often or prefer flexibility over loyalty, sticking to independent booking may be the better choice. Always assess how much you’ll actually use the benefits and whether the costs align with your travel habits.