Emirates, Cathay Overhaul Loyalty Programs as 77% Abandon Faster
Emirates launches NFT tiers, Cathay adds calendar tracking as 50% of APAC loyalty points go unused. How airlines combat defection with fintech partnerships.
Major Asia-Pacific airlines are overhauling their loyalty programs in response to mounting member defections and unused points, with Emirates Skywards launching NFT-based tiers in May 2025 and Cathay Pacific announcing calendar-year status tracking for 2027. The moves come as industry data reveals 50% of loyalty points go unused across APAC travel programs, while 77% of consumers now abandon programs faster than three years ago.
Airlines Lower Barriers to Redemption
Emirates Skywards introduced NFT-based membership tiers and cross-brand rewards partnerships in its May 2025 update, aiming to increase redemption flexibility beyond traditional flight bookings. The Dubai-based carrier's strategy reflects broader efforts to combat low engagement rates that have plagued traditional point-accumulation models.
Mission Media
TravelBrands reduced its redemption threshold to 2,000 points for $25 travel certificates in 2025, making rewards accessible at significantly lower earning levels. The Canadian tour operator's move signals a shift toward immediate gratification over long-term point hoarding.
Cathay Pacific will implement calendar-year status tracking starting in 2027, allowing Diamond-tier members to bank unused status years for future use. The Hong Kong carrier's overhaul addresses retention challenges as high-value customers increasingly defect to programs offering more flexible benefits.
Fintech Disruptors Target Fragmentation
Singapore-based fintech HeyMax raised $11 million in Series A funding in January 2026 to consolidate fragmented loyalty points across travel and retail sectors. The startup's platform addresses a key pain point for APAC consumers who struggle to maximize value from multiple disconnected programs.
Coalition models enabling cross-industry redemption have delivered 100% redemption growth, according to Mastercard data. Open-loop systems allow members to use airline points for groceries, ride-hailing, and other everyday purchases, dramatically increasing perceived value.
Singapore Airlines expanded its KrisFlyer program through a partnership with Langham Hotels running from October 2025 through February 2026, offering 500 bonus miles for three-night stays. The collaboration illustrates a trend toward integrating hotel and flight rewards within unified ecosystems.
Balance Sheet Pressures Mount
Unused loyalty points represent growing liabilities on airline balance sheets, as carriers must reserve funds for future redemptions that may never materialize. The 50% unused rate suggests billions in locked capital across the industry, creating financial pressure to either drive redemption or risk regulatory scrutiny over point expiration policies.
Programs maintaining high eligibility thresholds face particular challenges. Hyatt's Globalist tier requires 60 qualifying nights for benefits including complimentary breakfast, a barrier that may discourage casual travelers from sustained engagement. Hong Kong's Dorsett Rewards enables point earning across properties but lacks transparency on expiration terms, contributing to member frustration.
The loyalty crisis reflects deeper shifts in consumer expectations shaped by mobile-first commerce and digital-native behaviors across Asia-Pacific markets. Travel brands now compete not just with airline rivals but with retail and fintech platforms offering instant gratification and transparent value.
Industry observers note that repeat cash bookings after point exhaustion remain the ultimate loyalty metric, demonstrating genuine preference beyond transactional rewards. Programs failing to drive this behavior risk becoming cost centers rather than revenue engines as member acquisition costs rise alongside churn rates.
Want to stay up-to-date on the stories shaping Asia's media, marketing, and comms industry? Subscribe to Mission Media for exclusive insights, campaign deep-dives, and actionable intel.
