The COVID-19 pandemic not only dramatically limited travel but also caused permanent shifts in traveler behavior, forever changing “business as usual” for airlines. No touchpoints with travelers have changed more profoundly than loyalty programs. In 2020, airline industry revenues totaled $328 billion, about 40% of revenue from the previous year, McKinsey reports. Benefits designed for frequent flyers continue to lose their efficacy as uncertainty around the return of business travel remains. There are predictions that anywhere from 36% to 50% of business travel may never return, according to Forbes, especially as remote conferencing grows in its acceptance. COVID-19 will subside, but airlines may need to come to terms with a fundamental change in how they approach loyalty. Loyalty programs themselves are a business-critical source of revenue, after all, with complex partner ecosystems that depend on frequent traveler activity. But as Forbes describes, “Loyalty programs will change because people will likely be traveling less, and the old rules about what was rewarded and what rewards are desired may also change
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