Travel Passions Are Reshaping Loyalty Engagement

The report highlights that travel motivations are now the strongest indicator of how consumers engage with loyalty programs, influencing how they earn, redeem, and perceive value. Across APEC, Food & Dining, Nature & Sightseeing, Shopping, Cultural Immersion, and Recharge & Disconnect emerge as the leading travel priorities, with Food & Dining standing out as the strongest driver of both travel and hotel loyalty engagement. Nearly two-thirds of travelers prioritise culinary experiences when planning trips, and this segment demonstrates particularly strong loyalty behaviours through food-related earning opportunities and F&B-focused redemptions, positioning dining as one of the most scalable engagement levers for hotel brands.

At the same time, travellers seeking Recharge & Disconnect experiences represent a major growth opportunity for hotel loyalty programs. While these travellers are comparatively less likely to initially enroll in hotel loyalty programs, they show high levels of engagement once on-property, particularly through stays, spa experiences, and dining. The findings suggest that for this segment, hotels and resorts are increasingly viewed as destinations in themselves rather than simply accommodation providers.

Hotel Loyalty Remains the Anchor Category

Hotel loyalty programs continue to hold the strongest position within the broader loyalty landscape across APEC, engaging 66% of travelers and outperforming airline, retail, and dining programs. Retention levels also remain strong, with most members staying enrolled for more than two years, reinforcing the role of hotel loyalty as a central driver of long-term brand relationships and repeat engagement.

The report reveals that practical, everyday value has become non-negotiable for travelers across APEC. Consumers increasingly expect loyalty programs to extend beyond aspirational rewards and deliver immediate utility through everyday earning opportunities. Redemption behaviors also reflect this shift, with most travelers preferring smaller, instantly accessible rewards, while others continue to value high-ticket redemptions and exclusive experiences. These patterns indicate that successful loyalty strategies must strike a balance between practical value and aspirational engagement.

Partnerships Are Expanding Loyalty Ecosystems

The growing importance of partnerships is another defining trend shaping hotel loyalty across the region. Travellers are actively seeking more ways to earn and redeem points beyond hotel stays, with demand rising for broader partner ecosystems and more flexible redemption opportunities. Loyalty earning across APEC is driven primarily through property stays and co-branded credit card spending, followed closely by food delivery, dining, retail, and e-commerce partnerships. On the redemption side, travelers most frequently use points for property upgrades, food and beverage indulgences, and practical travel enhancements, reinforcing the importance of rewards that directly improve the travel experience.

Despite high overall participation rates, loyalty motivations differ significantly across APEC markets, with the report identifying three distinct traveler mindsets shaping engagement behaviors. In mature markets such as Japan and South Korea, travelers demonstrate highly strategic and disciplined loyalty behaviors, engaging with programs primarily as tools for maximizing value through optimised earning and practical redemptions.

In markets including Singapore, Australia, and Thailand, travellers adopt a more pragmatic approach, engaging selectively with loyalty programs that offer tangible travel enhancements, flexibility, and visible savings. Meanwhile, high-growth markets such as India, Indonesia, and Vietnam display stronger emotional and aspirational engagement, with travelers placing greater emphasis on exclusivity, status, partnerships, and memorable experiences as part of the loyalty journey.

Strategic Implications

The findings reinforce that loyalty growth across APEC will not be driven by a single regional strategy but by the ability of brands to adapt to highly localised consumer behaviours and evolving expectations. For hospitality brands, future competitiveness will increasingly depend on creating flexible loyalty ecosystems that integrate seamlessly into both travel and everyday life, while delivering personalized experiences, stronger local partnerships, and rewards that balance aspiration with utility.

As noted by John Toomey, long-term loyalty success in APEC will depend on how effectively brands evolve alongside travelers and build relevance through localized experiences, partnerships, and ecosystem-driven engagement.

 Key Loyalty Trends in India

• Most likely to travel for shopping 
• 93% participate in loyalty programs (#2 in APEC) 
• 69% redeem points for big ticket items – highest in APEC 
• More likely to earn points through bank transfers compared to the rest of APEC (43% vs 36% APEC average) 
• 41% stay active in loyalty programs because they give access to exclusive experiences