Preserving the humanity of travel in the agentic AI era

Travel is fundamentally a human experience, and personalization has always been the ideal: the concierge who remembers your name, the host who anticipates your needs, the perfect room tailored to your preferences. 

But true personalization has traditionally been a luxury, reserved for those with wealth and elite status. Even as technology has enabled mass travel and big data and CRM systems have laid the foundation for personalization, brands have struggled to scale hyperpersonalization to everyone. Loyalty programs have become the industry’s best attempt at bridging this gap: Points and tiers quantify who deserves what, with status serving as a proxy for real relationships and customer understanding. 

Until now. With the introduction of AI agents, hyperpersonalization can scale from the segment level to the individual traveler. Done right, it has the potential to democratize what was once a luxury good: the experience of being recognized. 

Of course, serendipity and delight remain a huge part of the travel experience: unsolicited dinner recommendations from local shopkeepers, wrong turns that lead to hidden gems, and conversations with strangers that become core memories. Our research shows that, especially for Gen Z customers, agency and spontaneity play a big part in shaping their tastes and identities. The opportunity is for AI to know travelers well enough to make their experience feel personal—but also to know when to get out of their way.

Capturing this opportunity means redesigning loyalty so that rewards are legible to agents, personalization scales to the individual, and the system delivers an ecosystem of value matched to what each traveler actually cares about. In doing so, brands can finally deliver the kind of personalization that has always been the industry’s ideal.

The dual audiences challenge

Every travel brand is now designing for two distinct audiences. The first is the person who is comfortably waking up in their hotel bed, enjoying the aroma of morning coffee from the lobby brunch, or grabbing a beer with their new Scottish best friend by Fenway Park. The other is an AI agent that’s handling the searching, comparing, and booking tasks on that person’s behalf. 

These two audiences have different priorities, attention spans, and methods for evaluating information. Hyper-optimize a webpage for one audience, and you may inadvertently block traffic coming from the other.

It’s tempting to treat these dual audiences as a marketing problem—a matter of making pages readable to agents without alienating people. And that is part of it. Stripe has already built a wallet for agents, and AI coworkers are beginning to handle multi-step bookings. But the consumer trust gap is wider than the technology gap. The travel industry has not gathered enough data to determine whether travelers will allow an agent to optimize their preferences about brand, travel occasion, or loyalty points.

As brands strive to cater to both audiences, agents in the funnel are revealing three outdated assumptions baked into the way most travel and hospitality loyalty programs operate. First: transactions are the best measure of loyalty. Second: personalization doesn’t scale. Third: points are the primary reward. Once these assumptions are challenged, a different kind of reward emerges: the reward of travel itself. In the age of AI, loyalty programs should be designed with enough emotional intelligence to preserve the romance of travel while harnessing the superpowers of machine intelligence. 

False assumption 1: Transactions are the best measure of loyalty

When American Airlines launched its AAdvantage program in 1981, it introduced the first large-scale frequent-flyer program by mining its reservation system for recurring phone numbers. This marked the first time the airline could identify returning customers and begin building direct relationships with them rather than with their travel agents. The airline built the program on the data it had at the time: transactions. Forty-five years later, most loyalty programs still follow a similar structure—offering points for spending, tiers for hotel nights, and miles for distance traveled. 

This transactional dynamic is increasingly ineffective. The average American belongs to 17.4 loyalty programs, but actively engages in fewer than half. Many brands claim loyalty membership sizes that rival the entire adult population of the United States. These transactions may look like loyalty, but are they really?

The next generation of travelers will have an agent doing the work that only the most dedicated points gurus do today: discerning what each traveler finds valuable and surfacing the options that match. Imagine a Gold-tier member with a brutal travel schedule who is looking for a hotel close to tourist attractions. In a regular search, they filter by price, reviews, and location. An agent can do that, plus spot the perks that actually matter at six in the morning after a red-eye: early check-in and a quiet room away from the elevators. 

Now, the measure of loyalty broadens beyond the transactional into the experiential and emotional utility of being seen and cared for. Agents simultaneously reveal which programs offer real value and match them to what each traveler values for each and every trip. 

False assumption 2: Personalization doesn't scale

Top loyalty programs like Amazon Prime offer around 30 distinct benefits. They range from free next-day shipping to cash-back options and streaming media subscriptions. Brands surface long lists of these perks because they can’t possibly know which one will land with a given member. The list is often a coping mechanism for the brand’s inability to fully personalize and the consumer’s inability to remember everything the brand offers.

Marketers often use robust quantitative surveys, such as conjoint analyses, to gain insight into consumer preferences. Run enough permutations with enough travelers, and you can statistically estimate which combination of benefits they value most. Marketing teams still debate granular tactics, like the order of perks to list in an email. But those debates are entirely unnecessary when agents can just choose based on the traveler’s preferences.

Consider the scale this can reach. Expedia Group alone encompasses more than 3.5 million lodging and vacation rental properties. One can imagine that in the near future, by analyzing a traveler’s bookings and reviews across this vast selection, an agent can ensure that a guest’s preferences are prioritized for every booking, regardless of who operates the property.

Personalization scales when agents do the matching. The new design challenge is enabling agents to interpret hundreds of personal preference variations and reward ecosystems, making offerings sufficiently readable for an agent to match and communicate well on the consumer’s behalf.

False assumption 3: The points are the reward

Ask anyone who has been a road warrior what real loyalty feels like, and the answer is rarely the points. It’s often Shirley at the front desk, who remembers you like a higher floor, a firm pillow, and a bigger room rather than a view. The recognition itself was the reward, a relationship rather than a transaction. But for too long, it was too expensive to offer to anyone beyond elite travelers. 

Now, the behaviors that used to earn that recognition are fading just as technology is emerging to recognize customers without them. Today’s consumers are less loyal and less inclined to align themselves with a specific loyalty program or brand because they value choice, flexibility, simplicity, and convenience. The number of people who used to go on mileage status runs in December just to hit status is decreasing. Instead, they’re seeking something more, and brands are increasingly able to provide it, thanks to advancements in AI.

Expedia’s recent partnership with CLEAR offers a glimpse into the future of travel loyalty: It is evolving from individual brand perks to an integrated ecosystem of complementary benefits that enhance each step of the journey (think: Apple ecosystem logic, but applied to travel). For example, CLEAR offers Expedia members discounted memberships to CLEAR+ lanes and access to its Concierge services, providing VIP treatment as they head to their next destination. What stitches the ecosystem together is the underlying agent layer. It reads each traveler’s  preferences across the partner brands and surfaces the right benefit at the right moment, without the traveler having to coordinate it themselves. No longer just a perk for road warriors, recognition becomes an experience any traveler can enjoy at every stage of their journey.

The opportunity to make travel more human

People often talk about compound interest when it comes to money. You invest a small amount, it grows over time—that’s the magic of compound interest. But we believe the memories, stories, and friendships formed through travel compound even harder. Years later, a distinctive smell, a friend, a menu item—whatever—can magically transport you back to that travel moment. 

Loyalty has never really been about earning points. It’s about the memories of being cared for while away from home, discovering something new and unexpected, and feeling seen and recognized. It’s about the desire to return because those memories capture the joy of travel.

Nights, miles, and dollars are the receipts for a trip. They are not what the trip leaves behind, which is more sensorial and more personal than anything a tier structure has ever captured. The next era of travel loyalty will be about making travel more human, powered by the combined strengths of machine intelligence and emotional intelligence.