As genAI assistants play a more prominent role in shopping, retailers and brands will have to rethink how their loyalty programs support direct consumer relationships, and how loyalty benefits can be surfaced in AI conversations.

Many of the trends that dictated travel spending in 2025 will remain in play in 2026, including market bifurcation, AI influence, and anti-US sentiment.

The fourth quarter is shaping up to be a strong season for travel companies catering to affluent consumers—but an uncertain one for everyone else. From the perspective of the Big Four airlines—American, Southwest, Delta, and United—holiday demand looks strong. But hotel operators are warning of weakness as interest in US travel declines. And while affluent consumers are driving travel spending, much of that money is being spent on international trips. That’s small consolation for the many retailers and restaurants that are counting on domestic demand to make up for declining inbound tourism.

Delta expects another record-breaking holiday season as the airline’s affluent customer base spends big on domestic and international travel. However, the travel industry is in a far more uncertain state than Delta’s upbeat earnings suggest. Softening demand from low- and middle-income consumers and international visitors is weighing heavily on the airline and hospitality industries, while the government shutdown could also prove painful.

United Airlines teamed up with Instacart to give its loyalty program members sweetened perks like free grocery delivery and bonus miles. The $0 delivery fee—what United calls a first for an airline—applies on orders placed just before, during, or shortly after a domestic flight. Loyalty program participants can also earn miles for setting up new Instacart+ memberships and for linking their United and Instacart accounts.The United-Instacart collaboration is more than just a marketing tie-up. It shows how companies are responding to the desire for more flexible loyalty programs and sets the stage for more cross-industry ties among retailers, travel companies, and other industries.

While dynamic pricing has been around for decades, Delta Airlines has recently come under fire for announcing that it would increase its use of generative AI for flight pricing from 3% to 20% of domestic flights by year-end.

In this podcast episode, we discuss the backlash to Delta’s decision to use personalized AI pricing, how consumers feel about dynamic pricing, and if there is a way for retailers to implement it without losing shopper trust. Listen to the discussion with Analyst and guest host, Rachel Wolff, Vice President of Content, Suzy Davidkhanian, and Senior Analyst, Zak Stambor.

Retail media is not just for retailers anymore. US commerce media ad spending is projected to hit $118.4 billion by 2029, growing at a 15.3% compound annual growth rate (CAGR), per a May EMARKETER forecast.

The insight: Travel demand has stabilized after a turbulent start to Q2, Delta CEO Ed Bastian said in an interview with CNBC. As a result, the airline reinstated its profit outlook for the year. It had withdrawn its forecast after President Donald Trump’s Liberation Day tariff announcements. Our take: The summer travel season is shaping up to be better than airlines expected at the beginning of Q2—but demand remains constrained by uncertainty as consumers debate whether to indulge now or conserve their resources in anticipation of future financial strain. Airlines can either juice demand by lowering prices, or protect their bottom lines by cutting capacity and doubling down on premium experiences.

Delta SkyMiles members can now earn points on Uber and Uber Eats: The tie-up aims to cement loyalty at a time when consumers are increasingly price-sensitive.

Delta expects 2025 to be a bumpy ride: Travel demand is cratering as the Trump administration’s policies create chaos and consumers brace for a recession.

Other airlines like Alaska Airlines have also pushed into the premium space as the cards can bring in higher volume and revenues

Airlines expect robust travel demand in 2025: United and Alaska echoed Delta’s bullish forecast following record Q4 performances.

Delta expects 2025 to be its best year yet: The airline is confident travel demand will soar as wealthy consumers and business travelers increase spending.

American Airlines earned almost $1 billion in loyalty reward revenues in Q3 2024, which made up over 7.2% of its total operating revenue, according to public filings.

The card’s unique waitlist promotion can help the card gain a sizable user base

Delta expects demand from high-income consumers to boost revenues in 2025 and beyond: More than half of its ticket sales will come from premium seats by 2027 as travelers splurge on comfort.

US travel media network (TMN) ad spend will reach $2.13 billion this year and increase to $2.96 billion in 2026, per our September 2024 forecast.

They seem to be responding well to Amex’s 40 product revamps this year, shrugging off higher annual fees

The annual charges increased across all six cards, but Amex is hoping the enhanced rewards will offset the added consumer costs