Let’s face it. Among the hardest hit of all pandemic-affected economies, the travel industry continues to endure unimaginable financial losses. According to a McKinsey report, available seat miles on US airlines were down 71% in April 2020 from the previous year. Hotels worldwide were operating at 29% compared to 2019’s occupancy rates of 72%. In 2019 (try to remember), according to the World Tourism Organization, the urge to explore our planet internationally drove 1.4 billion individuals to travel abroad.
Now, most people have spent a year reminiscing about past vacations or contemplating when their next one might happen. And for the most avid travelers engaged in airline, credit card, and hotel loyalty programs, 2020 provided extremely limited opportunities to maintain status, earn points, or redeem travel rewards. To address this vacuum, leading travel brands have revamped their loyalty programs, shifting away from spend-and-get models toward personalized value-based loyalty programs.
Travel loyalty reimagined
Travel loyalty programs matter to consumers, and so do their responses to the pandemic. A survey by Data Axle finds that most consumers (83%) say that receiving loyalty rewards influences their decision to patronize a travel or hospitality brand. For decades, travel companies zeroed in on experiential and aspirational marketing campaigns, but now, that experience requires an honest indication that safety, mediation, and consistent attention to customer welfare have become the new normal. A study by Deloitte finds that 40% of consumers say they will purchase more in the future from brands that responded well to the crisis. The ideal response should take on many forms of customer communication, follow-through, and improvements to the experience.
Let’s take a look at how some airlines, hotels, and travel credit card companies are transforming their loyalty programs to…