Loyalty points and rewards can be a source of great savings for travellers. A recent survey called The Tipping Point: Inside Canada’s Changing Loyalty Landscape was conducted by iSeatz, a New Orleans-based company specializing in customizable travel booking solutions and loyalty program integration. Researchers polled 1,136 Canadian consumers enrolled in loyalty programs offering travel-related rewards in November and December last year. Similar research was conducted in the U.S., making cross-border comparison possible.
One key finding from the report is that Canadians are “notably value-conscious, prioritizing price and cost-saving deals above all else.” A finding that’s reflected in their shopping habits. The report states that nearly one-third of Canadians adjusted their product choices in 2024 to maximize loyalty point accumulation, and 45% of Canadians prioritize saving money on travel, slightly higher than 44% of Americans. Additionally, sustainability, personalization, and flexibility (especially in payments) are top priorities for many Canadian consumers.
Other key findings include how Canadians prefer to use loyalty programs as well as some interesting disconnects between the loyalty program providers and users, which demonstrate an opportunity for providers to better align with consumers. Highlights of the report include:
- Travel demand and loyalty program growth: More than half (54%) of Canadians are members of three to five loyalty programs, with the market expected to grow at an 8.7% CAGR, reaching CAD $7.09 billion by 2028.
- Disconnect between brands & consumers: 60% of loyalty professionals believe their program is consumers’ first choice for booking travel, but only 51% of consumers say they visit their loyalty program’s website first.
- The awareness gap: While 96% of brands say they offer a travel booking portal, only 21% of consumers are aware of it.
- User experience is a significant barrier: 58% of consumers report frustrations with loyalty program user experience (UX), yet only 9% of brands see this as a top challenge, and only 27% recognize it as an area for improvement.
- Sustainability matters: 60% of consumers would choose a loyalty program that prioritizes sustainability, rising to 85% among Gen Z.
- Earning & redemption preferences: 20% prefer earning/redeeming points on non-travel purchases (vs. 16% in the U.S.).
- Generational loyalty preferences: Older generations focus on point accumulation and redemption, while Gen Z prioritizes high-quality travel options and is the most likely to engage with loyalty programs offering exclusive personalized recommendations.
Credit cards continue to be a popular way for travellers to accrue loyalty points. For a deeper dive into what’s available, see The Ultimate Guide to Travel Credit Cards (Plus Best Ways to Redeem Points and Miles).
This article was originally published by Travel Pulse Canada on 13th February 2025. View original.
