Global Travel Industry Embraces Change as Rocket Travel by Agoda Introduces a Loyalty Framework That Aligns with Modern Travellers’ Demand for Genuine Value

Written By: Ricky Acharjee

Ricky Acharjee

I am travel writer at Travel And Tour World with 3 years of experience covering global tourism, aviation, hospitality, and destination news. Dedicated to accurate reporting and compelling storytelling, Ricky explores the trends, innovations, and developments shaping the international travel industry while delivering engaging insights for travellers and industry professionals.

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October 31, 2025 2:13 PM

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The global travel industry is entering a transformative phase, adapting rapidly to evolving traveller expectations. Rocket Travel by Agoda has introduced a modern loyalty framework that redefines how travel brands connect with customers. This new system reflects a crucial shift from traditional points-based rewards to a model centred on authentic value, flexibility, and transparency. As travellers increasingly prioritise meaningful experiences over transactional benefits, the initiative aligns loyalty programmes with today’s demand for genuine value and personalisation, marking a significant step in the evolution of travel engagement.

As travellers’ preferences change rapidly, traditional loyalty models are being reassessed. Many reward schemes now face a growing “value gap” between customer expectations and brand delivery, according to a recent report co-authored by Skift and Rocket Travel by Agoda — the strategic partnerships division of the digital travel platform Agoda.

Titled The Loyalty Value Playbook: Redemption Experience and Cash Spend as the New Benchmarks for Customer Growth, the report provides an action plan for closing this gap. With nearly eighty per cent of consumers now more likely to abandon a loyalty programme than they were three years ago, the findings reveal that travellers are increasingly drawn to loyalty systems that emphasise clarity, flexibility, and genuine value across their journey.

Rocket Travel by Agoda has introduced a comprehensive guide aimed at helping companies transform underperforming loyalty programmes using measurable strategies. The guide outlines six fundamental capabilities that focus on enhancing redemption experience, usability, transparency, and exclusivity:

• Data and Personalisation Engine: Using behavioural insights and AI-driven data to recommend tailored offers, increasing redemption rates and overall engagement.
• Partner and Inventory Strategy: Expanding access to premium accommodation and experiences, coupled with competitive prices and perks such as early check-in and late checkout.
• Marketing Technology and Customer Journeys: Reducing unredeemed points by improving communication, offering transparent explanations of benefits, and encouraging repeat cash bookings.
• Governance and Controls: Maintaining fair and transparent dynamic pricing policies, supported by clear rules to sustain customer trust and minimise disputes.
• Cross-Functional Collaboration: Uniting teams from loyalty, operations, and data divisions to track and improve key metrics like guest lifetime value and cash booking frequency.

The playbook underlines the growing risk of revenue loss for brands that fail to evolve their programmes. Citing global loyalty studies, the report notes that only half of earned loyalty points are typically redeemed, while a significant share of participants leave programmes due to slow reward accumulation or unclear value propositions.

Through case studies and industry analysis, the research shows that modern loyalty programmes succeed when they foster repeat bookings and higher spending by offering meaningful, friction-free experiences. Powered by AI personalisation and data integration, such systems not only improve guest satisfaction but also strengthen long-term customer relationships.

Ultimately, Rocket Travel by Agoda’s insights demonstrate that loyalty in today’s travel industry depends on more than just points — it hinges on relevance, transparency, and the ability to meet travellers where they are, aligning with Agoda’s wider goal of making travel simpler, smarter, and more rewarding.

“The challenge and opportunity for loyalty programs is that expectations haven’t shifted from one set of benefits to another, they have expanded. Travelers still want the traditional perks, but they also expect more, making loyalty harder to manage,” says Damien Pfirsch, Chief Commercial Officer and Head of Rocket Travel at Agoda. “This report equips travel brands with a playbook to rebuild guest trust through clear, flexible, and relevant loyalty experiences, boosting both point redemptions and cash bookings.”

The global travel industry is undergoing a major transformation as Rocket Travel by Agoda unveils a new loyalty framework tailored to modern travellers’ evolving needs. This innovative system shifts focus from traditional reward points to authentic value and flexibility, empowering travellers to experience greater satisfaction and transparency. It reflects the growing demand for personalised and meaningful travel experiences, aligning perfectly with the new era of conscious and connected tourism.

Agoda’s Rocket Travel uses its deep travel industry knowledge to help partners design loyalty programmes that truly connect with their customers. By focusing on flexibility and personalisation, the company enables brands to strengthen long-term relationships, enhance customer retention, and achieve steady, sustainable growth in a competitive market.