In the world of travel, is loyalty falling apart?

This is a topic on the minds of many travelers during an unprecedented summer.

Andy Abramson felt this frustration when American Airlines postponed his flight from Orlando to Las Vegas. When told by a staff member that his lack of status barred him from an earlier flight, he declared, “That was it for me.”

Abramson, a communications consultant based in Las Vegas, stated he’ll steer clear of American Airlines in the future, opting instead for Southwest, Delta, or any alternative airline.

New studies indicate Abramson is not alone; many travelers are feeling similarly frustrated. A study by XM Institute, a customer experience consultancy, revealed that about 10% of consumers had negative experiences with airlines or hotels this year, with roughly half reducing or ceasing their business with those companies.

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The government is paying attention, too. The Department of Transportation recently initiated an investigation into the loyalty programs of the four major airlines in the U.S. to ensure customer rewards remain safeguarded against “any actions that could undermine their worth, advantages, or accessibility.”

Ari Lightman, a digital media and marketing professor at Carnegie Mellon University, pointed out that insufficient customer support, declining service standards, and poor views of travel companies are prompting customers to rethink their loyalty.

“This is especially prevalent among younger travelers who feel less connected to any singular brand,” he noted.

American Airlines stated that Abramson’s situation was due to maintenance issues and insisted that all passengers receive the same treatment regarding rescheduled flights. “Our commitment is to provide care for all our customers,” a spokesperson expressed.

What’s pushing travelers to their limit?

There are two primary factors leading travelers to reconsider their loyalties.

First, travel companies are overly focused on profits. The soaring demand for travel and reduced competition have enabled businesses to exploit this seller’s market by hiking prices and providing decreased services. The situation is quite dire.

“Cost-cutting during an era of slim margins and industry consolidation has led to intense prioritization of profit,” stated customer service specialist Chip Bell.

Second, loyalty programs offered by travel companies are becoming less valuable and even more complicated. Gone are the days when points could quickly be redeemed for free flights or hotel stays.

Nowadays, you almost need to be part of the inner circle to gain any advantage from a loyalty program, according to experts like Tim Hentschel, the CEO of HotelPlanner.

“Concerns are also rising about loyalty points losing value over time or sudden changes in rules that undermine the program’s worth,” he added.

Should you switch your travel provider?

If you’re reconsidering your travel loyalties, you’re not alone. Here’s how you can tell when it’s time to make a change.

• When service is consistently poor. Frequent delays, cancellations, and unhelpful customer service should prompt you to consider switching providers, advised Mario Matulich, president of CMP, a customer service consultancy. “If a competitor offers much better rewards, lower fares, or superior services, changing your provider is a no-brainer,” he noted.
• If your company shows no regret for mistakes. “Service recovery” involves how a business makes amends to customers, such as sending an apology or reversing fees. If your airline or hotel company isn’t interested in compensating you when issues arise, it might be time to consider a different option, according to Rob DelliBovi, CEO of RDB Hospitality. “If there’s no effort to recover, switching is advisable,” he suggested.
• If you receive a better offer. If another provider offers better service or incentives, it may be worth making a move, said Melissa Copeland, a principal at Blue Orbit Consulting, a customer service advisory. “You’ll realize it’s time to switch when your travel experiences become disappointing,” she remarked. She recently transitioned from a hotel chain she had loyally used for years after enjoying a better experience with a new brand.

Ultimately, you’ll know when it’s time to make the switch.

How serious is the situation?

Travel companies are capitalizing on the increase in travel by raising prices and reducing customer service levels. Complaints received by my consumer advocacy nonprofit have more than doubled in the first half of this year as this trend continues to grow.

Many experiences reflect Abramson’s situation. Major travel companies are scaling back their customer service or implementing automated systems, and they are introducing new regulations designed to enhance profits—rules that might benefit the companies but frustrate customers.

However, some companies strive to earn your loyalty. Andrew Jernigan, CEO of Insured Nomads, shares a minor incident that demonstrated that some companies still value their customers.

It occurred after a dinner at a Hilton, which he described as a “not so great” experience. As he was leaving the restaurant, a manager inquired about his dinner, and he casually expressed his dissatisfaction. To his surprise, “Dinner was on the house,” he said.

Can you guess which hotel he chose for his next stay?

You got it—he booked another stay at Hilton.

“Hilton exceeded my expectations,” he remarked.

My suggestion: Invest some time in researching companies that genuinely value your business and will not take you for granted. They are still available.

Christopher Elliott is an author, consumer advocate, and journalist. He founded Elliott Advocacy, a nonprofit organization that assists with consumer issues. He also publishes Elliott Confidential, a travel newsletter, and the Elliott Report, a website focused on customer service. If you need help with a consumer issue, you can contact him here or email him at chris@elliott.org.