Do Loyalty Programs Still Reward Loyalty?

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When you hear the term loyalty program, what do you think of?
Most people imagine a system that rewards you for being a loyal customer — which makes sense, since that’s literally what the word means.

Loyal: faithful to a cause, ideal, custom, institution, or product
(Merriam-Webster)

But let’s be honest: do programs really reward us for being loyal anymore?

If they did, they’d reward us for the times we consistently choose the same airline, hotel, or even a coffee chain — even when it’s not the cheapest or most convenient. But in 2025, loyalty isn’t about consistency. It’s about compliance. You’re only rewarded when you spend the way the program wants you to spend.

Airlines: Loyalty Points Aren’t About Flying

It’s kind of ironic that the programs once called “frequent flyer” programs now have very little to do with how often you actually fly.

Take American Airlines, for example. In 2025, earning elite status isn’t about the miles you fly — it’s about the Loyalty Points you earn. And you can rack those up without ever setting foot on a plane.

Sure, you’ll earn Loyalty Points from flying, but you’ll also earn them from using an American Airlines credit card, shopping through their eShopping portal, or booking hotels and rental cars through their partner sites. In fact, it’s entirely possible for someone who never flies at all to hit AAdvantage Platinum or even Platinum Pro status just by swiping their card often enough.

On the flip side, a traveler who takes dozens of short, inexpensive flights might earn barely enough Loyalty Points to make it past the entry-level Gold tier. So the “frequent flyer” who’s actually in the air isn’t nearly as valuable to the program as the one who’s spending heavily on the ground.

That shift shows what loyalty really means today: not consistency, not miles flown, but revenue — and the kind of spending behavior the airline can track and monetize.

And nowhere is that more obvious than with Delta. Delta has led the industry in monetizing loyalty, especially in the front cabin. Instead of prioritizing upgrades for its most loyal flyers, Delta aggressively markets first-class and Comfort+ upgrades for cash — even to non-elites — rather than giving those seats to Medallion members who’ve earned them. If you live at a Delta hub, you already know: don’t even joke about the upgrade list. Your position isn’t about how long you’ve been loyal — it’s about how much you’ve spent.

Delta, American, and United all operate on the same basic principle now: loyalty doesn’t mean flying often — it means paying more. And in 2025, the “frequent flyer” program has become the ultimate spending incentive program.

Hotels: Loyalty Still Counts, But Dollars Count More

To be fair, the hotel world hasn’t drifted quite as far from traditional loyalty as the airlines have. Most programs still hand out elite status based on how many nights you stay — not how much you spend on each stay. So if you spend 60 nights a year at Hyatt or 75 nights at Marriott properties, you’ll earn a top-tier status regardless of whether those nights were at mid-range or high-end hotels. That part still feels like “loyalty.”

But when it comes to earning points, it’s all about the dollars. Every major chain — Hyatt, Marriott, Hilton, IHG — now ties earning rates to the amount you spend, not the number of nights you stay. A week-long stay in a lower-cost market might earn fewer points than a single night in New York City, even though the long-term loyalty looks the same.

And while hotel chains still run promotions, they’ve lost most of their punch. Once upon a time, a promo could make you shift stays — like IHG’s old Accelerate or Hyatt’s Nights for Free Nights offers. These days, most are “double points” or “2,000 points every two nights” — nice to have, but rarely enough to move the needle.

Another major shift: you only earn points, elite night credits, and on-property perks when you book directly with the hotel. If you book through a third-party portal — even one run by your credit card issuer — you’re often treated like a non-member guest. That means no points, no upgrades, and no breakfast, even if you’re a top-tier elite.

It’s a frustrating trade-off. Credit cards like the Chase Sapphire Preferred or Citi Strata Premier give hotel statement credits when booking through their portals, while programs like Delta Stays reward you with miles or credits for doing the same. But if you take advantage of those, you’ll usually lose your elite benefits. So you have to choose: use the portal and get the credit, or book direct and keep your perks.

Even elite status has its limits. Once you’ve hit the threshold for the top tier, there’s often little incentive to keep going. Some programs, like Hyatt, have added incremental Milestone Rewards for every 10 nights beyond status levels — but after a certain point, even the most loyal members are left asking, “Is that all there is?”

The end result? Staying loyal for the sake of loyalty doesn’t get you much anymore. The real rewards come from big spending — whether it’s premium rooms or even a co-branded credit card swipe.

Starbucks: Loyalty That’s All About the Money

Starbucks Rewards used to feel like a simple “buy 10 coffees, get one free” kind of program. It rewarded frequency — not spending power. But like most loyalty programs today, it’s become completely revenue-based.

Now, you earn stars only when you pay with your Starbucks Card or app balance, and the number of stars you earn depends entirely on how much you spend. It’s not about how often you stop by — it’s about how much cash you push through their system. The bigger your tab, the faster you earn.

Even their partnership with Delta SkyMiles follows that same pattern. You don’t earn miles for how many coffees you buy — you earn them based on how much you reload onto your Starbucks Card. It’s another example of loyalty being measured in dollars, not devotion.

And just like airline miles and hotel points, redemptions have quietly been devalued over time. Drinks and food items that once offered decent “sweet spots” now cost significantly more stars, and the good deals have mostly disappeared. The end result? You’re spending more, earning proportionally less, and redeeming for less value than before — all while being told you’re a “loyal” member.

Final Thoughts

Across the board, loyalty programs in 2025 have one thing in common — they’re no longer really about loyalty.

Airlines reward how much you spend on tickets and credit cards, not how often you fly. Hotels still count nights toward elite status, but earning points and bonuses now depends on how much money you drop per stay — and only if you book the “right” way. Even your morning coffee run at Starbucks is just another example of a “loyalty” program that’s become completely tied to revenue.

What’s missing is the sense of appreciation for consistent, repeat customers. You can be loyal for years, but if your spending habits don’t fit a program’s preferred pattern, you’re not the kind of loyal they care about.

Sure, these programs still have value — if you understand how to work within their systems. But genuine loyalty, in the traditional sense of rewarding long-term customers simply for their continued business? That’s become more of a marketing slogan than an actual benefit.

In 2025, loyalty isn’t about relationships — it’s about return on investment. And for most brands, that’s the only kind of loyalty that matters anymore.

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This post first appeared on Your Mileage May Vary