loyalty programs at a tipping point
For decades, loyalty programs were among the most powerful tools in travel. They shaped behavior, influenced booking decisions, and generated significant ancillary revenue. But in recent years, the shine has worn off.
Why?
- Point inflation has eroded trust; when everyone prints points, their value drops.
- Redemptions have become harder, with blackout dates, higher thresholds, and endless restrictions.
- Financial accounting pressures force programs to treat loyalty currencies as liabilities rather than opportunities.
- Competitors, from OTAs to low-cost carriers, now attract customers with simpler, more transparent models.
The consequence: What was once aspirational has become transactional. Loyalty feels less like a privilege, and more like a burden.
The New Move: Lufthansa Meets Marriott
The recent announcement that Lufthansa Miles & More and Marriott Bonvoy will join forces looks, at first glance, like a smart play. Status matching, expanded earning opportunities, and new touchpoints are all logical steps. But let’s be clear: these are program mechanics. They may create short-term excitement, but they won’t solve the structural issues facing loyalty today.
Mechanics Don’t Create Loyalty, But Meaning Does
The critical mistake many brands make is assuming that more mechanics equal more loyalty. In reality, they only equal more complexity. True loyalty emerges when customers feel understood, recognized, and valued. It’s not about the spreadsheet, it’s about the story.
Consider this: years ago, at The Chedi Muscat, I was surprised with complimentary laundry as part of my status recognition. A trivial cost for the hotel, yet a memorable moment for me. That gesture was worth more than thousands of points. This is the future of loyalty: small, intentional experiences that make travel easier and more personal.
What Lufthansa x Marriott Must Get Right
If this partnership is to transcend mechanics, it must:
- Embed real customer value: Benefits that save time, reduce friction, and feel personal.
- Integrate seamlessly: Recognition should travel with the customer, not require them to “opt-in” repeatedly.
- Surprise and delight: Through gestures that can’t be replicated by OTAs or credit card programs.
Anything less will risk being another tactical announcement in an industry already flooded with them.
The Bigger Picture
The battle for loyalty is no longer about points. It’s about trust, emotion, and anticipation. The brands that win will be those that move beyond transactional mechanics and create emotional contracts with their customers. Partnerships like Miles & More x Bonvoy have the potential to set a new standard, but only if they dare to reimagine loyalty as more than a balance sheet game.
Final Thought & Takeaway
Loyalty in 2025 is not about accumulation. It’s about connection and extraordinary customer experiences . Those who understand this will thrive. Those who don’t will continue to inflate their points and deflate their brand.
👉 My Service
If you are currently rethinking your approach to loyalty to become more relevant, economically sustainable, and customer-centric, let's connect. I would be happy to discuss how I can support.
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