The loyalty program benefits people value most, according to our survey
Free flights and hotel nights may be the first things that come to mind when you think of loyalty programs. But from airlines and hotels to restaurants, retailers and gas stations, people have different ideas about which rewards and benefits are most valuable.
For TPG's inaugural State of Loyalty report, we partnered with YouGov to survey 2,158 U.S. adults about how they use and value loyalty programs. In this companion story, we'll take a closer look at which benefits the people value most across seven loyalty categories and what their favorite programs do to keep them coming back.
Most valuable loyalty program benefits
Here's a look at what loyalty program users across seven categories believe are the most valuable benefits, including the percentage of those people who ranked each perk among their top three most valuable benefits for that category.
| Category | Most frequently included in the top three | Second most frequently included in the top three | Respondents |
|---|---|---|---|
Airline | Fee waivers (69%) | Seat upgrades on existing bookings (58%) | 671 |
Hotel | Free award nights (73%) | On-property tier perks (64%) | 666 |
Rental car | Complimentary vehicle upgrades (71%) | Elite counter-skipping privileges (54%) | 404 |
Credit card | Cash back (84%) | Gift cards (48%) | 807 |
Dining | Free food items (84%) | Dollar-amount discount on check (74%) | 721 |
Retail | Instant checkout discounts (78%) | Points/cash back for free items (69%) | 756 |
Fuel | Cents-off-per-gallon savings at the pump (88%) | Convenience store discounts (62%) | 745 |
Throughout this story, our findings reflect responses from people who reported actively earning rewards in the relevant loyalty category and were selected to answer detailed questions about that category, rather than all survey participants. The number of respondents for each category is shown above.
Airline loyalty programs
Here are the rates at which people who use at least one airline program — such as Delta SkyMiles or American Airlines AAdvantage — included specific benefits among their top three when asked about the most valuable ways they like to use their rewards:
- 69%: Fee waivers, including for checked bags
- 58%: Seat upgrades on existing bookings
- 51%: Economy award flights
- 31%: Premium cabin award flights
- 25%: Companion certificates
- 20%: Lounge access
- 18%: Other rewards
- 16%: Partner perks and cross-brand benefits
- 12%: Elite status tier benefits
Although economy award flights ranked third among airline benefits based on how often respondents included them in their top three, they were the most popular first-choice benefit. Specifically, 29% of airline loyalty program respondents ranked economy award flights as their most valuable benefit, compared with 23% who ranked fee waivers, such as waived checked bag fees, as their most valuable benefit.
But what motivates people to use a specific airline loyalty program? 46% of people agreed that the points or miles they can earn are the primary reason they fly with certain airlines, while 32% agreed that benefits are the primary reason.
Airline status isn't necessarily the benefit people value most. Although 37% of airline respondents said that actively pursuing elite status describes them at least somewhat, only 12% ranked elite-status tier benefits among their three most valuable airline rewards.
When asked about what their favorite airline programs do to keep them loyal, the most common answers were as follows:
- 48%: Make the ticket booking and points or miles redemption process fast and easy
- 45%: Give me access to preferred seats or complimentary upgrades
- 36%: Provide onboard perks, such as free Wi-Fi or discounts on inflight food and drinks
- 26%: Ensure customer service and reservation change interactions feel personal and prioritized
- 24%: Provide early or exclusive access to flight sales or offers
Related: 17 best airline credit cards
Hotel loyalty programs
The following are the rates at which people who use at least one hotel loyalty program, such as Marriott Bonvoy or Hilton Honors, include specific benefits among their top three when asked about the most valuable reward types within their loyalty programs:
- 73%: Free award nights or room point redemptions
- 64%: On-property tier perks
- 60%: Complimentary room upgrades
- 51%: Special members-only promotional discount rates on room bookings
- 22%: Preferred customer service lines and personalized support
- 17%: Cobranded partner perks
- 14%: Other rewards
Free award nights were the most popular hotel loyalty program benefit, with 73% of respondents including them in their top three and 35% ranking them first. And TPG agrees: Award nights are among the best reasons to carry a cobranded hotel credit card and are usually the best way to redeem hotel points.
Meanwhile, 66% of hotel loyalty program respondents said the idea of choosing where to stay based on whether they can earn points or build a stay history with a specific hotel chain describes them at least somewhat.
When asked about what motivates their hotel choices, 52% of respondents agreed that earning points is a primary reason they stay with certain brands. Separately, 41% agreed that loyalty benefits, including elite status perks, are a primary reason.
When asked about what their favorite hotel loyalty programs do to earn their business, the survey respondents gave the following most common answers:
- 50%: Give me access to preferred rooms or complimentary upgrades
- 49%: Make the room booking, mobile app key check-in and points redemption process fast and easy
- 36%: Give special tier status, welcome amenities or milestone recognition for being a long-term customer
- 30%: Give me enhanced rewards earning rates or a faster track to elite status
- 29%: Ensure customer service and reservation change interactions feel personal and prioritized
People clearly value getting upgraded rooms and enjoying seamless and easy booking and customer service interactions.
Related: 7 of the best hotel credit cards that come with an annual free night
Rental car loyalty programs
Here are the rates at which users of at least one program included specific benefits among their top three when asked about the most valuable reward types within rental car loyalty programs:
- 71%: Complimentary vehicle-class upgrades
- 54%: Elite counter-skipping privileges
- 53%: Free rental days paid entirely via point redemptions
- 52%: Guaranteed vehicle availability or priority booking windows during peak periods
- 30%: Preferred customer service lines and personalized support
- 27%: Cobranded partner perks
- 13%: Other rewards
Free rental days and complimentary upgrades were virtually tied at 25% as the most valuable first-choice rental car benefit, even though upgrades appeared more frequently in respondents' top three.
But what motivates people to use a specific rental car loyalty program, such as Avis Preferred or Hertz Gold+? 54% of respondents said that rental car loyalty program benefits are the primary reason they use certain rental car brands, and 47% said the points they can earn are the primary reason. However, 66% of people reported that credit card benefits at least somewhat influence their choice.
When asked about what their favorite rental car loyalty programs do to earn their continued business, people gave the following most common answers:
- 53%: Give me access to complimentary car-class upgrades or priority pickup lanes
- 38%: Make the digital mobile app booking, vehicle lot bypass and e-receipt distribution process fast and easy
- 33%: Ensure location-level customer service, garage exit-gate and customer support interactions feel personal and prioritized
- 30%: Give me enhanced rewards earning rates or a faster track to elite status
- 30%: Give special tier-status recognition, dedicated service phone lines or milestone perks for being a long-term customer
Related: The best credit cards for rental car elite status
Credit card loyalty programs
When asked about the most valuable benefits within credit card loyalty programs, users of at least one program included specific benefits among their top three at the following rates:
- 84%: Cash back
- 48%: Gift cards
- 44%: Other rewards
- 43%: Purchase protections and insurance benefits
- 42%: Statement credit for travel, retail or dining purchases
- 26%: Transferable points or miles
- 14%: Experiential perks or status recognition
Diving deeper, a massive 62% of credit card loyalty program users cited cash back as their most valuable benefit, while 11% listed gift cards.
Many of TPG's editorial experts aim to extract maximum value from their credit card rewards by using the card that earns the most on each purchase and taking advantage of perks such as airport lounge access. However, only 17% of credit card loyalty program respondents said that frequently switching cards to maximize rewards at checkout describes them completely, while another 26% said it describes them somewhat.
Our survey shows that people also place a high value on simplicity. In fact, 83% of credit card loyalty program respondents agreed that the easier it is to redeem rewards and use card perks, the better. And 78% said that being willing to pay a higher annual fee for more premium benefits and exclusive access doesn't describe them at all.
When asked about what their favorite credit card loyalty programs do to keep them as cardholders, people gave the following most common answers:
- 68%: Make the payment and points redemption process incredibly fast and easy
- 32%: Seamless app or digital experience
- 26%: Ensure customer service and card dispute interactions feel deeply personal
- 22%: Surprise or unexpected rewards (e.g., bonus points and random perks)
- 18%: Easy no-friction annual fee justification
This strong desire for fast and easy point redemptions is likely why so many people redeem for cash back and gift cards.
Related: TPG's 10 commandments of credit card rewards
Dining loyalty programs
When asked about the most valuable reward types within dining loyalty programs such as MyMcDonald's Rewards, Chipotle Rewards and Domino's Rewards, users of at least one program included specific benefits among their top three at the following rates:
- 84%: Completely free food items, snacks, sides or beverages earned directly via points
- 74%: Straightforward dollar-amount price discounts applied to an entire meal check
- 48%: Punch card loyalty programs, where I receive a significant discount or free item after making a certain number of confirmed purchases
- 28%: Order prioritization and speed convenience
- 24%: Exclusive or early access to secret menu items, limited-time promotional flavors or seasonal releases
- 23%: Subscription-based recurring perks
- 19%: Other rewards
By far, what people value most in dining loyalty programs is the ability to redeem rewards for free food and drinks. A clear second is earning straightforward dollar amounts off their bill.
Related: Which coffee loyalty program is best: Starbucks, Dunkin' or Dutch Bros?
65% of dining loyalty program respondents said that downloading a restaurant's app or joining its loyalty program to get an immediate reward on an upcoming visit describes them at least somewhat.
But what motivates people to use a specific dining loyalty program? 51% of people said the points, cash back or discounts they earn are the primary reason they choose to eat or drink at certain places, and 49% said that loyalty program benefits are the primary reason they eat or drink at certain places.
When asked about what their favorite dining loyalty programs do to successfully maintain the relationship, people gave the following most common answers:
- 53%: Give me enhanced reward-earning rates that help me earn free purchases faster
- 42%: Make mobile app preordering, custom ingredient adjustments and cash register point-scanning fast and easy
- 39%: Give special tier benefits, visit-streak perks or celebratory milestone recognition for being a frequent guest
- 32%: Send me highly relevant, timely mobile app push alerts or discount codes
- 28%: Remember my customized meal modifications, historical meal preferences or typical order times
Enhanced reward-earning opportunities and easier ordering are the things dining rewards programs must get right to keep people coming back.
Related: The dining statement credits that save me over $1,000 every year
Retail loyalty programs
Here are the rates at which users of at least one program included specific benefits among their top three when asked about the most valuable reward types within retail loyalty programs:
- 78%: Immediate price discounts or cash-off coupons applied directly at checkout
- 69%: Store points or cash-back balances accumulated over time to buy completely free items
- 53%: Free shipping, fast home delivery or priority order pickup options
- 47%: Member benefits, such as birthday rewards, free items and complimentary services
- 20%: Early access to holiday sale events, clearance inventory or limited product drops
- 19%: Cross-brand partner perks
- 15%: Other rewards
People find discounts and the ability to accumulate rewards toward a free item as the most valuable perks of retail loyalty programs. But a decent subset of people also appreciates delivery benefits.
But what motivates people to use a specific retail loyalty program? 60% of people said the points, cash back or coupons they earn are the primary reason they choose to shop with certain brands, while just 46% said benefits are the primary reason they shop with certain brands. Meanwhile, 57% of retail loyalty program respondents said credit card statement credits or perks at least somewhat influence where they shop.
When asked about what their favorite retail loyalty programs do to earn their business, people gave the following most common answers:
- 59%: Make digital coupon clipping, app scanning and point redemption at the cash register fast and easy
- 51%: Give me enhanced rewards earning rates that help me earn free purchases faster
- 42%: Give special tier status, birthday surprises or milestone recognition for being a long-term customer
- 27%: Provide early or exclusive access to peak holiday inventory or online shopping portals
Related: The best credit cards for online shopping
Fuel loyalty programs
When asked about the most valuable reward types within fuel loyalty programs, users of at least one program included specific benefits among their top three at the following rates:
- 88%: Direct cents-off-per-gallon savings rolled back immediately at the pump terminal
- 62%: Inside-the-store convenience store discounts
- 49%: Milestone fuel vouchers or completely free single-tank fill-up rewards
- 43%: Stackable partner savings
- 37%: Other rewards
- 21%: Subscription-based fueling perks
Fuel loyalty program members believe that getting direct cents-off-per-gallon discounts at the pump is the most valuable reward. 79% of fuel loyalty program users said the per-gallon discount they receive is the primary reason they choose to fuel up at certain gas station brands.
When asked about what their favorite fuel loyalty programs do to keep them coming back, people gave the following most common answers:
- 53%: Make pump screen authorization, app payment scanning and member ID pin entry fast and easy
- 28%: Provide exclusive members-only pricing windows, club days or temporary price protection locks
- 24%: Send me highly relevant location-based alerts regarding local pump prices and fast-track reward offers
- 22%: Ensure the in-store cashier transaction, beverage station service or attendant interactions feel welcoming and personal
People want ease when using their fuel loyalty at the pump. However, 33% of fuel loyalty program users said they're overwhelmed or annoyed by complicated pump prompts, mandatory app barcode entries or restrictive gallon limits per fill-up.
Related: The best gas credit cards to add to your wallet
Bottom line
Our survey shows there's no single definition of a valuable loyalty program benefit. Credit card and fuel loyalty program members overwhelmingly favor straightforward savings, while airline, hotel and rental car loyalty program members value a mix of award redemptions and practical perks, such as waived fees and complimentary upgrades.
However, one theme consistently emerges across categories: People appreciate programs that make earning and redeeming rewards simple. Ultimately, the best loyalty programs offer rewards and benefits you'll actually use without requiring more effort than they're worth.