Airlines and hotel companies have long used loyalty programs to keep travelers coming back, but research suggests customers are increasingly willing to spread their spending across brands.
Airline, hotel, and cruise loyalty-program members typically belong to several programs, while the median share of a customer’s spending going to their preferred brand was just 60% for airlines and 50% for lodging, according to a 2023 McKinsey survey of 3,200 U.S. travelers.
McKinsey said travel companies should cultivate partnerships that “add personalization and value for loyal customers” and create richer connections with consumers. It offers the Uber-Marriott loyalty linkage as an example of a partnership that connects two large customer bases while making the travel experience more convenient.
“Loyalty programs have evolved from a nice-to-have perk into a powerful driver of customer choice. They drive where customers stay and how they book, unlocking both incremental demand and more profitable distribution,” said Kristi Gole, EVP Strategy at Global Hotel Alliance.
The new Delta-Hyatt deal is the latest example of travel companies trying to transform fragmented loyalty into a more connected customer relationship.
Delta Air Lines teams up with Hyatt, linking customers’ air and hotel experiences
Delta Air Lines and Hyatt have announced a long-term strategic partnership that integrates their loyalty programs. Launching in the coming months, the exclusive collaboration will connect Delta SkyMiles and World of Hyatt.
Consumers will mostly benefit from a new “Dual Earn” feature that lets elite members of both loyalty programs earn rewards simultaneously. Delta Medallion members will earn airline miles on qualifying Hyatt hotel stays, while World of Hyatt elite members will earn hotel points on qualifying Delta flights.
Both companies also promise future benefits, including exclusive access to personalized, once-in-a-lifetime experiences.
“Flying Delta creates experiences and opportunities that can’t be found anywhere else. Hyatt shares that same premium approach to everything from travel and dining to entertainment and accommodations, and it’s what makes them such a natural fit,” Delta CEO Ed Bastian said in the official press release.
What does the Delta-Hyatt deal mean for travelers?
The move is designed to cater to modern travelers who move fluidly between business and leisure. It aims to close a gap in premium travel by creating a connected experience where both the airline and the hotel recognize a traveler’s loyalty status.
Travel experts are already noting that this partnership brings back one of the most beloved perks in consumer travel: the “double-dip.”
Here’s some of my other recent travel news coverage:
- Marriott finally fixes major pain point for key travelers
- TSA finally lifts an annoying airport restriction after 25 years
- Americans losing more protection over delayed flights
The new arrangement allows travelers to stack their earnings across two highly valuable programs, notes Sean Cudahy, senior aviation reporter at The Points Guy.
Cudahy highlighted that Hyatt points are incredibly lucrative for consumers, valuing them at roughly double the worth of a Marriott Bonvoy point and about four times the value of a Hilton Honors point.
This new alliance also serves as a nostalgic win for longtime frequent flyers.
The partnership closely mirrors Delta’s fan-favorite 2013 Crossover Rewards partnership with Starwood Hotels, according to Gary Leff of View from the Wing.
With Hyatt now stepping into the role that Starwood once occupied, Delta flyers are getting back a highly rewarding hotel partnership model that many thought was a thing of the past.
How to maximize Delta-Hyatt loyalty perks
Leff breaks down what the new Delta-Hyatt partnership really means for loyalty members:
- Hyatt elites flying Delta: High-tier members can accumulate valuable Hyatt points directly through Delta airfare purchases without extra hotel stays, adding nice value for existing Delta flyers, although this is unlikely to spark a carrier switch on its own.
- Delta elites staying at Hyatt: Frequent flyers get a true “double dip” by earning bonus SkyMiles on top of their standard Hyatt points, replacing the old system where travelers had to choose between earning miles or hotel points.
- The credit card shortcut: World of Hyatt cardholders who hold automatic Discoverist status might easily qualify for points on Delta flights, though Leff cautions that extra SkyMile alone aren’t valuable enough to justify booking unnecessary hotel nights.
- Source: View From The Wing
Travelers want connected air-and-hotel rewards
Industry data reveals that consumers are increasingly seeking overlap between their flight and hotel rewards. In fact, 73% of travelers stated they want the ability to spend airline loyalty points on hotel accommodations, according to travel firm OAG’s annual loyalty research.
A global loyalty study published by the Global Hotel Alliance also revealed that 71% of respondents find a loyalty program significantly more appealing when it includes partner benefits outside its core business, such as cross-earning status and travel-related perks.
“Today’s travelers are very clear about what they value in a loyalty program — it’s not complexity or novelty, but generosity, simplicity, and benefits they can immediately understand and use. At the same time, expectations are expanding beyond the stay, with travelers increasingly looking for programmes that deliver broader lifestyle value through meaningful partnerships,” said Gole.
Delta’s recent key moves
As one of the dominant U.S. airlines, Delta frequently updates its offerings and enhances its services.
Amid fierce competition in the industry, Delta is updating its offerings through various partnerships. For example, this July, the airline brought back its Starbucks partnership, allowing members to earn 1 mile per dollar spent on daily coffee runs.
Earlier this year, the airline rolled out “Delta Concierge,” available to all SkyMiles members in the Fly Delta app. This AI-powered assistant lets passengers handle flight cancellations, track lost bags, and navigate delays directly from their phones, according to Delta’s official announcement.
As part of my recent travel coverage for TheStreet, I reported on Delta CEO Bastian explaining how the airline’s use of AI tools is driving a major shift in ticket pricing.
While the technology has faced political scrutiny over fears of individualized price gouging, Delta maintains that the AI analyzes macro supply and demand rather than personal data.
By better predicting traveler behavior and reallocating seat inventory, the AI can open up more lower-priced seats to price-sensitive customers, allowing the airline to maximize revenue without broadly discounting fares for travelers willing to pay a premium.
Related: Marriott finally fixes an annoying part of hotel rooms
