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Selectable Benefits: A Win-Win for Airlines & Travelers.

Letting members choose their rewards increases satisfaction, personalization, and perceived program value.
LPS Employee
A couple being happy about their travel loyalty benefits.

Selectable Benefits in Airline Loyalty: Why Giving Customers a Choice Pays Off

Loyalty is no longer just about earning miles and unlocking fixed rewards. In today’s fast-changing travel landscape, passengers expect experiences that reflect their individual preferences. Selectable benefits are a direct response to this shift. By letting members choose the rewards they actually value, airlines can strengthen engagement, improve satisfaction, and stand out in a competitive market.

More airlines are embracing this approach and not only for high-tier members. Selectable benefits are becoming a strategic component to drive member engagement independent of tier thresholds (e.g. via milestone choice benefits).

Why Do Selectable Benefits Matter?

More Relevance, More Satisfaction

Every traveler is different. One may want an upgrade voucher for long-haul travel. Another might prefer additional bonus miles or a Wi-Fi pass. Offering selectable benefits ensures that each member receives something that is perceived meaningful and valuable – not just what the airline assumes is relevant. This kind of flexibility leads to a more personal and rewarding experience. Proactively choosing one‘s benefits creates stronger emotional connection between the traveler and the airline, which is exactly what loyalty programs are designed to achieve.

Better Control Over Cost and Breakage ​

From an airline’s perspective, selectable benefits offer an opportunity to manage costs more effectively. Not all rewards cost the same to deliver. Allowing members to choose lets the airline influence reward selection patterns, steer members toward high-perceived-value options with lower actual cost and better predict financial liability. This enables programs to optimize perceived value relative to reward costs.

It also helps reduce unused benefits. Instead of pushing a lounge pass on someone who never uses lounges, you give them a choice that they are more likely to use – and value.

Increased Retention and Loyalty Stickiness ​

Programs that offer choice often see better engagement. When members feel that they are part of a personalized experience – rather than just recipients of generic perks – they are more likely to stick with the airline, engage more frequently, and stay loyal even when competitors offer tempting alternatives.

Designing a Selectable Benefit Program

For selectable benefits to work, they need to be thoughtfully designed and integrated into the broader loyalty strategy. Here are some best practices:

Tie Selection to Loyalty Tiers

The number and type of selectable benefits can scale with status. Entry-level tiers might receive one basic option, while top-tier members can choose multiple rewards from a wider portfolio of premium benefits. This reinforces the value of climbing the loyalty ladder and makes higher status more aspirational.

Define the Right Timing

Most programs offer selection either upon qualification or renewal. Others are exploring mid-year selections based on changing travel behavior. This adds a layer of flexibility, particularly for members whose travel patterns vary over the year.

Curate a Balanced Portfolio

Offer a mix of practical and emotional benefits. Typical options include:

  • Upgrade certificates
  • Extra baggage or lounge access
  • Bonus miles
  • Priority services
  • Wi-Fi or food vouchers
  • Carbon offset donations
  • Status gifting
 

The list should be short enough to avoid overwhelming members but wide enough to offer real choice.

Make It Simple and Digital

A seamless digital experience is essential. Members should be able to make their selections easily via the airline’s app or loyalty portal. Reminders, confirmation emails, and simple explanations of each option help improve uptake and satisfaction. If the process is confusing or hidden, even the best benefits can lose their impact.

Real-World Examples

Several airlines have already introduced selectable benefits as part of their elite status programs:

  • United Airlines gives Premier members flexible PlusPoints that they can exchange for perks such as TravelBank Cash, Bonus Miles or tier level qualifying currencies.
  • Alaska Airlines lets its MVP Gold 100K members pick one of six high-value perks such as lounge access, bonus miles, upgrade certificates, unlimited Wi‑Fi, or gifting status plus milestone-based selections at other elite thresholds.
  • Delta Airlines offers Choice Benefits to Medallion Members, including upgrades, bonus miles, and status gifting.
  • Finnair allows tier members to select extras like upgrades, lounge access, or carbon‑offset contributions.


These examples show that selectable benefits are no longer just a trend – they’re becoming a core mechanic in successful loyalty programs.

Challenges to Keep in Mind

While the benefits are evident, there are also a few areas that require attention:

Operational readiness

The loyalty system must facilitate the flexible definition, evaluation and awarding of choice benefits, including the configuration of choice options, selection periods and redemption settings.

Communication

Members need to understand what they can choose and how to do it.

Simplicity

Too many options can create confusion. The benefit catalog should be curated, not crowded, because complexity diminishes the advantages of choice
Getting these elements right ensures that the program delivers on its promise – for both the customer and the airline.

Final Thoughts

Selectable benefits are a powerful way to make loyalty programs more personal, flexible, and engaging. They allow airlines to acknowledge the different needs of their travelers while managing costs and increasing program efficiency. Most importantly, they help turn the focus of loyalty programs from transactions towards thoughtful and relevant experience.

Whether you’re looking to revamp your elite tiers, introduce more flexible reward options or offer engaging milestone rewards, selectable benefits are a smart and future-proof choice.

LPS FLITE provides all the key capabilities needed to implement selectable benefits at scale.

Get in touch with us to explore how we can help you bring flexible, member-first loyalty experiences to life.

Conclusion

Selectable benefits are helping reshape the loyalty experience by giving airline customers more control, more relevance, and more satisfaction.

They offer a win-win: travelers feel better understood, while airlines can better manage cost and engagement. If you’re looking to modernize your loyalty program and create a more flexible, member-centric experience, this model is worth serious consideration.

For further insights take a look at our Consulting Services!

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