Loyalty Doesn't Come From a Program
Airlines and hotels use what's technically called a 'token economy.' Points are accrued like money and can be spent on various services.
Token economies operate a bit differently from other reward programs. They have a variable nature, and points can be equated to dollars. Due to their prevalence, token economies have become a commodity in a way other reward systems haven't.
Nearly every airline and hotel has a point reward system. The system itself is no longer a differentiator. I belong to every reward program known to humanity. So it doesn't really matter where I stay or what airline I use. I accrue points all over the place. If I use one airline for a long time and accrue a lot of miles, my loyalty to that airline diminishes after I cash in the points. The playing field is again leveled against all other programs. Many hotels and airlines wish they could get out of point systems altogether.
Unfortunately, they can't. Point systems have become a cost of doing business for those industries. Having one isn't a differentiator, but not having one is a detractor. One thing's for certain: they're no longer the most effective loyalty builders.
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