Weighing travel rewards

When does loyalty to one brand make sense?

Travel brand loyalty is nothing new. Ever since Texas International Airlines and American Airlines created the first frequent-flyer programs in the late 1970s and early 1980s, travelers have been pouring their airfare dollars into brands that offer the most perks.

Yet sticking with a single airline, hotel or rental car program comes with limitations. It narrows one’s comparison shopping, for one thing, which can mean higher prices.

Here’s how to decide whether going monogamous with a travel brand makes sense.

1 Big payoffs for big spenders

Travel brands like United Airlines and Marriott maintain their loyalty programs for a simple reason: They want to attract big spenders, particularly business travelers. To this end, loyalty programs will lavish benefits on travelers in proportion to how frequently they travel (and how much they spend).

This might sound simple, but it affects the value of these programs for ultra-frequent travelers relative to leisure travelers. For example, a traveler with Hilton’s lowest-level status will get about $2 back in value for every $100 they spend, according to a NerdWallet analysis, while someone with the highest-level status will get about $49 in value for every $100 they spend.

2 Worth the squeeze?

The enormous gulf between status holders highlights how the juice might not be worth the squeeze for those with low-level status. Katy Nastro, a travel expert at flight deals website Going, emphasized that the same goes for airline elite status, which disproportionately rewards high rollers.

Because the perks are so valuable for very frequent travelers, it almost always makes sense for them to maintain some travel loyalty, even at the cost of convenience.

3 Other trade-offs to consider

While limiting one’s loyalty to a single travel brand can offer benefits for frequent travelers, it also has hidden drawbacks. Claire Sturzaker, who writes about travel on her blog Tales of a Backpacker, began traveling full-time seven years ago. Yet despite her bona fide frequent traveler status, she mostly avoids loyalty programs and the status rat race.

So, who should bother with elite travel programs? Travelers for whom they were designed — frequent business travelers. Semi-frequent travelers who take a few trips per year might see some benefit from loyalty, but these perks are often offset by the cost of limiting one’s shopping choices.