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Australians still collect points, scan their member cards, and keep an eye out for the next freebie. Yet their patience is wearing thin. Rising costs and fast-moving AI are forcing brands to prove that loyalty schemes offer real value, not just another password to forget.

Household budgets put points to the test

New research from the Australian Loyalty Association paints a blunt picture. Eighty per cent of Australians expect better offers when they join a loyalty program. Another 72 per cent expect better service. More than half, or 52 per cent, say their household budget is under serious pressure.

That squeeze is changing how people shop. The research found 86 per cent are comparing prices, buying on sale, choosing home brands or taking other steps to cut costs. The customer may still like a brand, but the weekly bill is making a strong case for shopping around. aches well beyond the supermarket aisle. Travel, hotels, car hire, dining, finance, retail, leisure, power and phone firms all depend on repeat trade. When every dollar counts, points with little real worth can start to look like bright confetti.

Australian Loyalty Association Founder and CEO Sarah Richardson said brands could no longer treat loyalty as a sure thing.

“Brands can no longer assume loyalty is a given. Consumers are under pressure, they are actively comparing alternatives and they expect tangible value in exchange for their engagement,” Richardson said.

“The reality is that many loyalty programs were designed for a very different economic environment. Today’s customers expect relevance, personalisation and immediate value. If brands fail to deliver, customers have more tools than ever to find alternatives.”

AI becomes the new front door

One of those tools is AI. The ALA found 41 per cent of Australians had used AI to help research a purchase in the past year. That is a clear change in how people find goods, check prices, and make choices. The old sales funnel is starting to look more like an airport board in a summer storm. A buyer can ask an AI tool to compare options, summarise reviews, identify hidden costs, and suggest other brands before visiting a company’s website.

Richardson said AI was becoming a new entry point to the customer journey.

“AI is becoming the new front door to the customer journey. Consumers are increasingly using AI tools to compare products, research purchases and seek recommendations before they ever reach a brand website. That has profound implications for loyalty, acquisition and customer retention strategies.”

“The brands that thrive in the next decade will be those that can demonstrate value at every customer interaction. Loyalty is no longer just a rewards strategy. It’s becoming a business-wide growth strategy.”

That is the heart of the issue. A loyalty scheme cannot fix a poor product. It cannot hide weak service or make a high price look charming. It must be part of a wider plan built on trust, fair value, useful data and timely care.

Personal offers will matter, but brands must know where to draw the line. A customer may welcome a deal that suits their needs. They may be less pleased when a company seems to know more about their Tuesday night than their family does.

Trust takes centre stage on the Gold Coast

Trust will be a key theme at the 2026 Asia Pacific Loyalty Conference. The event will run from 28 to 30 July at the JW Marriott Gold Coast Resort & Spa.

The latest conference material promotes more than 400 loyalty professionals, over 200 brands, more than 30 exhibitors and more than 30 expert speakers. These current figures replace the earlier attendance estimates contained in the original announcement. Vice President, Loyalty Asia Pacific at Mastercard, is among the confirmed speakers. The ALA’s conference release names her as the opening speaker. Her session will examine trust, market shocks and the need to rewrite old loyalty rules as buying habits, regulation and technology change. y subject. Economic uncertainty can push customers towards the cheapest offer, while poor data practices can send them running in the opposite direction. Trust is no longer a pleasant brand value to print beneath the corporate logo. It is now a hard commercial asset.

The wider program covers behavioural science, AI and technology, loyalty economics, data and privacy, customer life cycles, campaign results and schemes launched or relaunched in 2025.

Senior leaders from Flight Centre, Adairs, Schnitz, Qantas, Telstra, Luxury Escapes, Accor Plus, Westpac, Myer and other organisations are listed to speak. The mix spans travel, airlines, retail, quick-service restaurants, banking and telecommunications. loyalty faces its own reckoning

For travel firms, the debate could not be more timely. Airlines, hotel groups, agents and car-hire brands have spent years building points, status tiers and member perks.

Yet a traveller using AI to compare fares may value a clear price, fair terms and quick help more than a reward that needs a small degree in accounting to redeem.

That does not mean points, miles or status benefits have lost their appeal. Far from it. It means their value must be clear, useful and easy to access. A reward that exists only in theory is unlikely to inspire much devotion.

The best schemes will make their worth plain. That may mean lower member rates, easier redemptions, useful perks at the right time or better help when a trip goes wrong. It may also mean knowing a customer’s history without having them retell the whole tale at the counter.

Customers increasingly expect recognition across the full journey. A frequent hotel guest does not want to be treated as a stranger because they booked through a different channel. Nor does a long-standing airline member want loyalty to vanish the moment a flight is delayed.

The commercial case is straightforward. Useful benefits can protect repeat business when rivals cut prices. Good service can limit customer losses after a problem. Relevant offers can increase spending without filling an inbox with daily digital wallpaper.

Data demands care, not clever tricks

Brands will also need to use customer data with care. AI can help identify needs, predict when a customer may leave and shape better offers. But it does not remove duty or good sense.

A system may be able to send thousands of personal messages in seconds. That does not mean those messages will be welcome, useful or even correct.

Bad data, weak consent or clumsy targeting can ruin trust faster than a points-expiry email sent on Christmas Eve. Privacy must therefore be built into the program rather than applied as a legal patch after the machinery is running.

Marketers will also need to explain what customers receive in return for their information. The old bargain, hand over your details and perhaps receive something useful later, is wearing thin.

People want a fair exchange. They expect brands to protect their data, respect their choices and provide benefits that are worth the intrusion.

The old rule still wins

The lesson is almost old-fashioned: loyalty must be earned. AI can improve the tools, but value, service and trust still do the heavy lifting.

As budgets stay tight and AI makes price checks easy, brands will have fewer places to hide. Programs that reward people in a clear and useful way should build stronger ties.

Those that offer little more than a digital member number may find that today’s customer is quite ready to swipe left.

The 2026 Asia Pacific Loyalty Conference will be held at the JW Marriott Gold Coast Resort & Spa from 28–30 July 2026. The ALA has also published its current confirmed speaker list.