AI, Loyalty Shifts, and the Future of Travel Marketing

This week we hosted events in New York and London to talk about our annual Megatrends report and hear from other leaders in the travel industry. I was able to attend both events alongside our Editor-in-Chief Sarah Kopit , who did most of the work on stage explaining the trends and leading conversations with leaders from KAYAK , Tourspain , and more. Below you’ll find some takeaways from those events, as well as other news the Skift edit team covered this week.

1. British Airways’ Loyalty Shake-Up: Key Lessons for Marketers

British Airways recently announced changes to its loyalty program, sparking heated debate among customers. The shift includes:

• A greater emphasis on revenue-based rewards, aligning points more closely with spending.
• Fewer redemption opportunities for lower-paying travelers, raising concerns about inclusivity.

While the backlash is significant, the move underscores a broader trend: loyalty programs are becoming tools for deeper personalization. Businesses can take away a critical lesson here – transparency and thoughtful communication are essential when overhauling benefits.

2. AI’s Transformative Role in Travel Search and Deals

From Kayak’s CEO predicting a watershed moment in AI-driven travel booking to Altimeter Capital’s insights on how AI is reshaping search, it’s clear that artificial intelligence is redefining how consumers find and book travel.

Expect more intuitive, personalized, and dynamic search experiences. AI-driven platforms may soon integrate real-time data to curate hyper-relevant offers, making static pricing models obsolete.

For businesses, it’s time to explore how AI tools can enhance customer experiences, from recommendations to seamless transactions.

3. TikTok’s Bold Move into Travel Marketing

TikTok is launching a travel-specific advertising product designed to connect brands with its massive user base. This offers:

• A unique opportunity for travel marketers to engage younger audiences through immersive content.
• Enhanced targeting capabilities to reach users actively planning trips.

With its focus on video storytelling, TikTok is poised to become a critical platform for destination marketing and product discovery.

4. Cultural and Operational Shifts in Hospitality

OYO’s New Policy in India: OYO has implemented a rule banning unmarried couples from staying at hotels in select cities, starting with Meerut. This raises questions about the balance between local cultural norms and broader market inclusivity.

Malaysia’s Tourism Goals: With a target of 35.6 million arrivals by 2026, Malaysia is doubling down on infrastructure and marketing. The strategy highlights a focus on eco-tourism and regional partnerships, offering a roadmap for other nations looking to boost tourism post-pandemic.

5. Travel Emissions Aren’t Slowing Down

Devastating natural disasters transformed cities including Los Angeles, California and Valencia, Spain over the last six months, and things aren’t getting any better. Skift’s new climate reporter Darin Graham reported on Friday that the news is indeed bad. In his words:

Our world was hotter in 2024 than any other year on record, the United Nations, the European Commission, and NASA said on Friday.

And:

Despite many efforts and pledges from within travel and tourism, UN Tourism projects that the emissions from this sector will rise 25% by 2030.

We’re optimistic that the industry and the larger transport and technology ecosystem is going to innovate when it comes to cutting fossil fuels from the supply chain. So let’s get to work.

– Jason Clampet

What are your thoughts on these trends? Are there shifts you’re seeing in your corner of the industry? I’d love to hear your perspective