US$1t unused points risk losing redemption value

Almost US$1 trillion in airline and hotel loyalty points is sitting unused globally.

The question is: who really controls that value?I'm delighted to share my latest interview with Asian Banking & Finance, where I discuss why loyalty points are evolving from a marketing reward into something much closer to a financial asset.Globally, hundreds of millions of travellers are accumulating points across airline and hotel programmes, yet many don't realise that the value of those points can change through expiry policies, redemption rule changes, and programme devaluations.

In the interview, we explore:
Why airline and hotel loyalty programmes increasingly resemble large financial ecosystems
How consumers can lose value when points sit idle or redemption rules change
Why loyalty balances may become relevant in tax, estate planning, divorce settlements, and corporate reporting
How AI could transform the way travellers and businesses evaluate points versus cash decisions in real time here is also an important

Australian angle. As Australia prepares for major RBA payment reforms, a bigger question is emerging: what happens to loyalty economics when the revenue streams that help fund rewards programmes come under pressure? The next phase of loyalty may not just be about earning more points but understanding how quickly their value can change.The travel industry has spent decades helping travellers earn points.

The next decade may be about helping them understand, value, and actively manage those points.

Thank you to Asian Banking & Finance for highlighting this important discussion.

Click on the video to watch in full.