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3 On Your Side: Loyalty Programs Offering More Experience-focused Rewards

By Jim Donovan

PHILADELPHIA (CBS) -- Hotel and airline loyalty programs used to offer very focused perks. The reward for frequent travel was most often more travel. But as 3 On Your Side Consumer Reporter Jim Donovan finds, now companies are stepping up the game with rewards that go way beyond a room or a seat.

At this year's U.S. Open tennis tournament, Starwood Hotels offered their loyalty program members perks beyond hotel rooms, including even the opportunity to take a lesson with a pro. Mark Vondrasek, Starwood Hotels Senior Vice President says, "It's one thing to get good tickets to a concert or good tickets to a tennis venue, but when you can provide experiences and access that's truly once in a lifetime, that's the differentiator for us."

The change is part of a recent move toward better perks for collecting points and experiences beyond free travel. Brian Kelly is known as "The Points Guy" and is an expert in maximizing frequent traveler points.

"Consumers have a hit a melting point where they're sick of being told the word 'no.' There's no nights available, there's no flights available, so these new redemption options for merchandise and experiences allow the programs to make money and differentiate themselves and the consumers are happy," he explains.

Elite customers reap the most benefits, but programs are starting to do more for less-frequent travelers too. According to Kelly, "Some programs are a lot better than others, the amount of miles you need. So there's a lot of different factors, but taking time and investigating can save you thousands and thousands of dollars in the long-term."

Even a customer who stays in a hotel for only five nights a year may be able to cash-in on some sort of reward. That's because more and more companies are realizing that infrequent travelers are more likely to post about those rewards on social media, which can influence friends and family, than a person who travels regularly for business.

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