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Loyalty is Broken. Here’s How Travel & Dining Brands Can Fix it
Acquisition costs are up 35 percent. Lifetime value? Just 4.5 percent. This report shows how leading brands are winning loyalty with AI, first-party data and better recovery despite today’s travel chaos.
A loyalty reckoning for travel and dining brands
From 2020 to 2025, the travel and dining industries were pushed to the brink. Customer expectations soared. Service was shaky. Economic pressures kept mounting. And legacy loyalty strategies cracked under all that weight.
New research from Adobe, Publicis Sapient and Incisiv shows just how much the game has changed: Customer acquisition costs are up 35 percent, but customer lifetime value has barely moved—just a 4.5 percent increase. Many brands are overspending to keep the customers they already have, while missing the mark with a rising generation of travelers who expect more.
What the leaders are doing differently
But not every brand is stuck.
The ones pulling ahead are leaning into AI-driven personalization, the smarter use of first-party data and faster recovery when things go wrong. This report lays out a roadmap for transforming customer relationships—from acquisition through retention—in a world where loyalty is harder than ever to earn.
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