The contest for customer loyalty among card issuing banks has moved well beyond points, as institutions confront a market where rewards have become routine and differentiation increasingly elusive.
For issuers, the challenge is no longer how to attract cardholders with incentives, but how to retain them through sustained engagement. Banks must reconsider the structure of loyalty programs and the role those programs play in broader customer relationships.
Vinita Savani, executive vice president of cards and loyalty at Royal Bank of Canada, described the current environment in direct terms. “The reality is that rewards have become table stakes. Every program offers value and most cards offer points,” she told PYMNTS.
Engagement Moves to the Center
In this setting, the emphasis has moved toward maintaining an ongoing connection with customers rather than relying on periodic redemption activity. Issuers are seeking to ensure that loyalty programs are continuous.
“What separates leaders,” said Savani, “is the depth of the experience wrapped around them. It’s not just about offering perks, but becoming fully integrated in how our clients or members live their everyday lives,” she said.
Programs that succeed, she said, are those that “capture more of the customer journey, and anticipate their needs before they’re articulated and use data to personalize offers and simplify decisions.”
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A Crowded Field
Nowhere is the competition more pronounced than in travel, long regarded as the anchor of credit card rewards. The proliferation of points-based programs has left issuers offering similar redemption options, often with comparable airline and hotel access.
Travel remains central, but the focus is shifting from redemption to the entire journey. “For travel specifically, which is such an important aspect of credit card loyalty, the differentiation comes from moving beyond the redemption moment. It’s not enough anymore to just help people cash in points,” she stated.
Issuers are expanding the scope of their offerings, layering in booking tools, pricing insights and flexible options that extend the value of rewards beyond a transaction.
At the same time, consumer expectations are changing in ways that are reshaping how loyalty offerings must be designed.
RBC’s Hopper Partnership and the Travel Pivot
RBC’s recent collaboration with Hopper Technology Solutions reflects these evolutions. The initiative aims to integrate a more advanced travel booking platform into the Avion Rewards ecosystem, expanding the role of loyalty in planning and purchasing travel.
The platform will allow members to use points across flights, accommodations and other travel categories, while introducing features such as flexible booking and pricing insights based on historical and predictive data.
Savani framed the partnership in terms of aligning with changing customer behavior. “We needed a platform that matched that new reality,” she said, noting that travel planning tools have advanced significantly in recent years.
The emphasis is on decision support rather than simple transactions. “Their tools help people make smarter decisions, which is exactly what our cardholders are asking for,” she told PYMNTS.
The shift is also evident in how the value proposition is being articulated. “These features shift the conversation from ‘here’s what you can redeem for’ to ‘here’s how we help you travel smarter,’” Savani said.
The broader strategy points to a redefinition of loyalty as a mechanism for deepening relationships rather than driving isolated transactions.
“This partnership signals that travel is evolving from a redemption category into a strategic pillar for building deeper customer relationships,” Savani said.
For issuers, the next phase will likely hinge on how effectively they can integrate data, tools and services into cohesive platforms that support customers from planning through purchase and beyond. That will require continued investment in technology and partnerships, as well as a willingness to rethink traditional program structures.
Savani indicated that the objective is to extend the bank’s role. “Success in the next phase belongs to banks who integrate data-driven tools that help clients make informed decisions and who build platforms that connect across the full journey,” she said.
“What we’re ultimately delivering is confidence in value, in options, and in making smart choices,” Savani told PYMNTS.
