Loyalty Programs Abound, But True Loyalty Is Rare—Australia’s Biggest Study Reveals Why

A new national study by Honeycomb Strategy, titled “The Science of Loyalty – From Situationship to Relationship,” has uncovered a revealing truth about Australia’s loyalty landscape: while travel companies are exceptional at attracting members, few succeed at maintaining their loyalty. The report—Australia’s largest of its kind—shows that despite the growing number of loyalty programs across travel, retail, and financial sectors, real consumer devotion remains elusive.

The Loyalty Paradox: Many Members, Little Loyalty

The research examined 52 major loyalty programs across a wide range of industries, including travel, retail, telco, and finance. It found that Australians are enthusiastic joiners but disengaged users. While most adults belong to at least one loyalty program, the study revealed that the average Australian actively engages with only five programs at any given time.

This trend exposes a paradox that many travel brands face: high membership does not equal strong loyalty. Programs such as frequent flyer clubs, hotel memberships, and reward platforms attract sign-ups quickly but struggle to sustain interest over time. Many customers enrol for an immediate benefit—such as a discount or welcome bonus—then lose interest once the rewards become harder to access or less meaningful.

In fact, 70 per cent of respondents said they expect instant value from a loyalty program, and 63 per cent would disengage if they didn’t continue to see relevant offers or rewards. The implication is clear: in a competitive travel market, loyalty cannot rely on points alone—it must deliver ongoing, tangible value.

The Cost of Complacency

The study also highlighted that many travel programs focus on the wrong success metrics. Membership figures, while impressive, often act as “vanity metrics.” They make programs look successful on paper but fail to reflect real engagement or spending behaviour. Without sustained participation, membership numbers are meaningless—and brands risk investing heavily in programs that generate little return.

This was evident among several major travel loyalty schemes, including Emirates Skywards, Marriott Bonvoy, and Singapore Airlines KrisFlyer, which were noted for their large member bases but relatively low ongoing engagement levels. Many participants reported joining these programs only to forget about them or use them infrequently due to limited perceived value.

However, some smaller, niche programs are finding success by offering tailored and practical incentives. For instance, Corporate Keys, an Australian accommodation group, has built its loyalty offering around real-world value for frequent business travellers. Instead of relying solely on points, the program rewards returning guests with exclusive upgrades, flexible booking options, and personalised service—benefits that directly enhance the travel experience. This customer-first approach reflects the study’s core finding: true loyalty is cultivated through relevance and recognition, not just rewards.

As Honeycomb’s research director explained, “Loyalty isn’t about how many people sign up—it’s about how many people stay, engage, and spend. True loyalty is built through trust, relevance, and emotional connection, not just transactional rewards.”

What Makes Loyalty Programs Work

The study identified three key traits shared by loyalty programs that successfully foster genuine engagement: simplicity, immediacy, and consistency.

1. Simplicity: The most effective programs are easy to understand and use. Complex point systems or confusing tiers discourage participation. Travellers want clear, transparent reward structures that make it easy to see the benefit of staying loyal.
2. Immediacy: Australians have grown increasingly value-conscious, particularly in the post-pandemic economy. Programs that deliver instant rewards—such as upgrades, vouchers, or early access to deals—perform far better than those requiring months of accumulation.
3. Consistency: Ongoing engagement is critical. The most successful programs continually remind members of their value through personalised offers, regular updates, and experiences that strengthen the brand connection.

By contrast, programs that are “set and forget” often fade from customers’ minds, reducing long-term effectiveness.

The Emotional Side of Loyalty

Beyond discounts and rewards, the study also emphasised the emotional dimension of loyalty. Travellers want to feel recognised and appreciated, not just marketed to. Brands that create memorable experiences, provide excellent service, and reward consistent engagement cultivate deeper relationships that go beyond financial incentives.

This is particularly true in the travel sector, where experiences often carry emotional weight. A personal touch—such as a surprise room upgrade for a returning guest or a thank-you message after a long flight—can make a far stronger impression than points alone.

Turning Programs into Relationships

Honeycomb’s research challenges the travel industry to rethink what loyalty truly means. Rather than chasing large membership numbers, brands should focus on creating meaningful relationships that drive repeat business and advocacy.

To achieve this, the report recommends that travel companies:

• Offer instant, visible rewards that deliver real value from day one.
• Simplify program structures to remove friction and confusion.
• Use personalized communication to keep members engaged throughout their journey.
• Measure success through engagement and spending, not just sign-ups.

Ultimately, the study concludes that true loyalty cannot be bought—it must be earned. The difference between a customer who signs up and one who stays loyal lies in how consistently a brand rewards trust, convenience, and emotional connection.

For Australia’s travel industry, this research serves as a timely reminder: loyalty is not about collecting members—it’s about keeping hearts.