Understanding Canada's Loyalty Evolution in 2025: Insights on Travel, Value, and Engagement

New iSeatz "Tipping Point" Study Highlights How Brands Can Win Loyalty in Canada's Value-Conscious Economy

NEW ORLEANS, Jan. 30, 2025 /CNW/ -- iSeatz, the technology company powering travel experiences that inspire loyalty, has released its first report, The Tipping Point: Inside Canada's Changing Loyalty Landscape, examining the Canadian travel loyalty market. The report outlines strategies for brands to drive engagement in a value-conscious market shaped by rising consumer expectations and economic constraints as part of the company's ongoing Tipping Point for Loyalty series.

A Market Defined by Pragmatism

Based on surveys of 1,136 Canadian loyalty program members and 116 industry professionals, the research reveals a nation of enthusiastic loyalty participants—54% of Canadians belong to three to five programs. However, loyalty isn't assured; Canadians are highly cost-conscious, with price and savings as primary motivators.

Travel Loyalty: Aspirational Yet Underused

While travel loyalty programs hold strong appeal, they remain underutilized. Only 21% of Canadians are aware of their loyalty programs' travel booking features, despite 96% of brands claiming to offer them.

User experience is a significant barrier: 58% of Canadian consumers report frustrations with user experience-related issues such as clunky platforms and confusing redemption processes. Addressing these gaps represents a considerable opportunity for brands to enhance visibility and usability, driving program engagement.

Tailoring Loyalty to Generational and Lifestyle Preferences

Survey data shows Canadian loyalty programs falling short of delivering the customized experiences members want. Eighty-three percent of consumers value personalized offers, but only 8% receive tailored recommendations between completing their booking and their day of travel. Younger generations, especially Gen Z, show heightened interest, with 30% willing to spend more when personalized options are available. Families also want tailored offers, with 68% of households with children noting the importance of personalized offers and rewards—far above the survey average of 52%.

AI's Growing Role in Loyalty Programs

More brands are exploring how AI can turn vast customer data into actionable insights, enabling them to offer more relevant rewards and improve their members' overall member experience. While 42% of brands acknowledge challenges in implementing AI, many are beginning to invest: 26% are prioritizing AI solutions this year, with 17% focusing specifically on personalization tools.

Providing Everyday Value Beyond Travel

Grocery and food delivery incentives are reshaping loyalty strategies, with 38% and 41% (respectively) of Canadian loyalty programs planning to introduce these options within the next 12 months. Combining these rewards with travel benefits creates a system that balances practicality and inspiration.

"Everyday rewards reflect a fundamental shift in how consumers view loyalty programs," said Larry Wine, President of iSeatz. "When brands align rewards with daily life while offering aspirational benefits, they create deeper, more meaningful connections."

Brands should prioritize resolving key issues in user experience and ensure rewards are relevant and accessible. By focusing on practical improvements, Canadian loyalty programs can better connect with consumers and reinforce engagement without adding unnecessary layers of complexity.

"Brands succeed when they stop viewing loyalty as a transaction and start seeing it as a relationship," added Wine. "Rewards should fit effortlessly into customers' lives while inspiring them to engage more deeply with the brand."

The 2025 Canadian Tipping Point report can be downloaded here; a companion report examining the U.S. loyalty market is also available: The Tipping Point: How U.S. Travel Loyalty is Evolving—A Three-Year Perspective.

To discuss the Tipping Point survey findings or speak with an iSeatz executive, please contact Vanessa Horwell at [email protected] or [email protected].

About iSeatz

iSeatz drives enduring brand loyalty through exceptional, connected experiences. Our digital commerce and loyalty tech solutions enable travel and lifestyle bookings that drive engagement and customer lifetime value. Our clients represent the best in travel, hospitality, and financial services, including American Express, IHG Hotels & Resorts, and Wyndham Hotels & Resorts. Backed by proven deliverability, reliable advanced analytics, and travel lifecycle expertise, iSeatz sets the bar for a superb journey from the first search. Visit www.iseatz.com to learn more.

SOURCE iSeatz