Loyalty programs are everywhere—but loyalty itself is increasingly rare. As consumers face a barrage of choices, traditional programs are failing to capture attention or deliver value. A “sea of sameness” characterizes today’s offerings, cluttered with uninspired, one-size-fits-all rewards like earned discounts with the brand or generic travel perks that leave customers indifferent. In fact, most marketers acknowledge the need to evolve their loyalty strategies to meet increasing consumer expectations.
by Aleks Kaczmarek
The challenge isn’t just meeting rising expectations—it’s breaking free from monotony to deliver what truly matters to consumers. Many loyalty programs fall short, failing to differentiate themselves or provide members with everyday value that keeps them engaged. Amid this struggle, though, an often-overlooked opportunity is hiding in plain sight: car rentals. 
Car rentals are the unsung heroes of the modern full-featured loyalty program. They are integral to travel–there’s a reason you often hear air, hotel, and car rental spoken in the same breath; they are an extremely valuable everyday benefit for a surprisingly large segment of loyalty program members. According to Driving Loyalty: Market Insights on Car Rentals & Reward Programs, a recent report by CarTrawler, one-quarter of U.S. loyalty program members rent cars annually, and nearly half (about 27 million people) are interested in booking through their loyalty program.
Despite this demand, only 12% of those who rented a car in the past year did so through a loyalty program, revealing a significant opportunity for brands to improve loyalty interactions and tap into this customer segment. With the car rental market projected to reach $44.7 billion by 2028, the potential is clear—but offering rentals alone won’t drive success. Loyalty programs must deliver high-quality car rental options that align with customer needs. Below, we explore findings from the CarTrawler survey and outline four strategies to capitalize on this opportunity.
Meeting Consumer Needs with Personalization
When renting a car, consumers prioritize price, vehicle suitability, and trust in the rental provider. Beyond these core considerations, varying loyalty member demographics have different preferences for car rentals. For instance, 55% of car renters under 50 prefer EVs, compared to just 27% of those aged 50 and older. Loyalty programs can leverage their member data to tailor their car rental offerings to individual members, enhancing convenience and greater trust.
Advanced personalization driven by AI also creates new opportunities for smarter upselling. For example, a family of five booking a trip through their loyalty program is unlikely to engage with a promotion for a two-door compact car. By tailoring car rental options to the context of the trip, loyalty programs can drive more completed bookings and deepen member engagement, underscoring the critical role of personalization.
Delivering Flexible Earning and Payment Options
Few things frustrate loyalty members more than not having enough points for redemption. Our report found that 63% of members frequently combine points and cash for redemptions, underscoring the demand for flexible payment options. Programs that enable this flexibility make it easier for members to maximize the value of their accumulated points, which is crucial for customer satisfaction, especially when renting a car.
Flexibility isn’t the only draw. While 62% of consumers are motivated to book car rentals through loyalty programs to earn points, only 20% have done so recently, highlighting an area ripe for development. By positioning car rentals as both point-earning and point-redeeming options, loyalty programs can deepen engagement and drive greater member activity.
Offering Member-Exclusive Perks and Ease of Use
From online travel agencies to the rental companies themselves, consumers have many options when booking a car. To become the ‘go-to’ option for members, loyalty programs must offer a superior customer experience, at a quality level at least on par with what consumers might expect from a direct supplier. What does that mean? The survey identified three key criteria consumers value: members-only discounts (42%), a seamless booking experience (39%), and transparent pricing (32%).
These insights underscore the importance of value and building trust. Loyalty programs that emphasize exclusive benefits, easy online booking, and consistent pricing will exceed expectations and outperform other booking channels.
Going Beyond Traditional Travel Needs
The report also reveals a surprising opportunity: the growing demand for non-travel car rentals. Nearly a quarter of respondents have rented cars for everyday needs like errands, family visits, or moving. Addressing these year-round use cases allows loyalty programs to diversify their offerings and provide value beyond seasonal vacation period, ensuring they remain relevant to members throughout the year.
This strategy opens a steady revenue stream and aligns with the trend toward practical, local use cases. It’s important to note that these consumers are often more price-sensitive and more likely to book directly with rental companies. To win this audience, loyalty programs should leverage their data capabilities and integrate AI-driven tools to anticipate members’ needs and deliver targeted, relevant offers at the right time.
Integrating car rentals into loyalty programs goes beyond being an added feature; it’s a strategic move that reflects modern consumer needs and strengthens member connections. With car rental technology that enables personalization, flexible earning and payment options, exclusive perks, and support for diverse rental purposes, loyalty programs can unlock significant opportunities. In fact, given that the US car rental market is expected to surge to $44.7 billion over the next five years, capturing consumers who have shown a willingness or intent to rent a car through a loyalty program represents a $20 billion opportunity. By meeting members where they are—whether for travel or everyday needs—loyalty programs achieve the growth they are looking for.
The question is: will more programs tap into the growing demand and elevate car rentals from a transactional benefit to a core driver of long-term member engagement and loyalty? Our answer is yes.
Aleks Kaczmarek, VP of Loyalty Partnerships at CarTrawler has over 13 years of experience in loyalty, specialising in identifying, launching, and growing strategic partnerships across the travel, financial services, and retail sectors. He has previously held roles at IAG Loyalty (Avios) and Affinion International (CX Loyalty). Currently, Aleks serves as the VP of Loyalty at CarTrawler, the world’s leading B2B technology provider of car rental and mobility solutions to the global travel industry.
Photo by Hyundai Motor Group on Unsplash
