Why it’s Time for Marketers to Rethink Travel Loyalty
Last year the U.S. Travel Association reported $1,036 billion in spending by resident and international travelers and that the high-value traveler purchased an average of seven airline trips and nine hotel bookings. With all that potential revenue in the marketplace and the nearly endless booking options at customers' fingertips, marketers need to find distinctive ways to stand out.
You’d be hard-pressed to find a person who is not familiar with travel loyalty programs, where you earn points to use for flights, hotel stays and more. Historically, these types of programs have driven massive loyalty sign-ups year after year across multiple travel verticals, which is why companies continue to offer them. A majority of high-value travelers — 87 percent — have status with at least one airline or hotel brand, according to research from Google and Greenberg.
However, as individuals sign up for multiple loyalty programs and spread their travel costs across brands, loyalty programs no longer spur the same level of spending with a single hotel chain or airline. And according to Think with Google, these loyalty programs are not even one of the top three considerations when choosing a brand to book travel with.
The most important factors for travelers are customer service, an easy-to-use website and online reviews. Armed with this data, how do travel/tourism marketers adjust their strategy to earn lasting loyalty?