For years, airlines and hotel chains have leaned on loyalty programs to retain frequent travelers, especially in premium markets. But in Europe, loyalty has always been more fluid — and that trend is accelerating. Even as travel demand rebounds post-pandemic, European consumers are signaling a clear shift in mindset: loyalty is no longer earned by points alone.
Our latest research reveals a growing trend of loyalty leakage across the region. Frequent flyer programs and hotel memberships are increasingly being bypassed in favor of flexibility, price transparency, and convenience — with online travel agencies capitalizing on the shift.
A Soft Loyalty Base in Europe
The U.S. has around 55% of travelers enrolled in loyalty programs, and many European markets aren’t far behind on the surface — France and Spain, for instance, hover near 50%. But the story isn’t just about enrollment rates. It’s about who is participating and how engaged they are.
In the UK, only 35% of travelers report being members of any airline or hotel program. Across Europe, engagement is lower among younger travelers (18–24) and older ones (65+), with the 35–44 age group most likely to be enrolled. Interestingly, mid-income travelers (€25,000–49,999) show higher membership rates than both lower- and higher-income groups — a reversal of the U.S. pattern, where loyalty participation typically increases with income.
These patterns highlight a key insight: the very segments loyalty programs have traditionally targeted — younger and affluent travelers — aren’t consistently engaging in Europe. That’s a serious challenge for travel brands looking to build long-term relationships in a fragmented and price-sensitive market.
From Status to Savings
What’s driving the shift?
For European travelers, price has overtaken perks as the primary loyalty driver. Among recent program joiners, nearly half (45%) say they signed up purely to save money. The appeal of upgrades, lounge access, or elite status has diminished — just 7% say they join for premium experiences.
This marks a fundamental departure from the traditional loyalty model, which has long been centered on exclusivity and long-term reward accumulation. Today’s travelers — particularly younger ones — want immediate value, not aspirational perks.
Hotels Are Struggling More Than Airlines
While airline loyalty is eroding, hotel chains are under even greater pressure. According to Skift Research’s proprietary Loyalty Stickiness Index, European travelers give hotel loyalty programs a weaker score (53 out of 100) compared to airline programs (62) — and the gap is widening.
The Index tracks traveler behavior by analyzing two things: how often they book within their preferred program, and how frequently they book outside it. A lower score signals a higher tendency to shop around — and less brand commitment.
Hotels are particularly vulnerable. The rise of vacation rentals, metasearch tools, and bundled offerings by online booking platforms has made comparison shopping effortless. As price competition becomes frictionless, the value of staying loyal to a single hotel brand diminishes — and loyalty becomes one of the first casualties.
Recent innovations also show how some brands are trying to combat this trend. For instance, Mandarin Oriental’s revamped app and loyalty program is designed to improve digital engagement and capture more direct bookings. These types of digital investments indicate a broader shift toward creating more personalized and frictionless loyalty experiences.
Why Loyalty Doesn’t Stick
Even among enrolled members, many programs struggle to convert sign-ups into repeat bookings. Convenience routinely outweighs brand allegiance — travelers prioritize better schedules, prime locations, and seamless booking experiences over staying within a loyalty ecosystem.
Many also find program benefits misaligned with their travel style. For price-sensitive travelers, lower fares or room rates elsewhere often trump future rewards. Redemption hurdles, limited inventory, and the rise of attractive competitor incentives — such as cashback and status matches — further erode stickiness.
Loyalty, in short, has become transactional, not emotional.
British Airways, for example, has recently ramped up its loyalty messaging to reassure frequent flyers amid increased competition and consumer uncertainty. This suggests that while engagement may be waning, brands still recognize the value of emotional reassurance and direct communication in retaining loyalty.
The Road Ahead: Reinvent or Be Replaced
Is this the end of loyalty as we know it? Not necessarily. But it’s clear that the old model is no longer working — especially in Europe.
Travel brands must redefine loyalty around what today’s travelers value most: flexibility, simplicity, and immediate benefits. Programs with no-barrier rewards, transparent pricing, and seamless integration with online travel agencies or co-branded fintech offerings are likely to see stronger engagement.
While the U.S. model of status-driven loyalty might still hold sway domestically, European travelers are voting with their wallets. In this environment, loyalty is no longer a habit — it’s a deliberate, value-based choice.
The European loyalty landscape is undergoing a quiet but seismic shift. Traditional programs must evolve from being status clubs to value engines. If they don’t, travelers won’t think twice before walking away — regardless of how many points they’ve earned.
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