United Kingdom
United States
Asia Pacific
TravelMole Guest Comment: The value of loyalty for travel brands
Wednesday, 09 Oct, 2009
0
Janet Titterton, business planning director of Collinson Latitudelooks at how adding value to loyalty programmes can differentiate travel brands in a crowded marketplace and how partnerships with other reputable brands can increase the value of their offering to customers.
To survive in the current climate, it is crucial for travel brands to not just win and retain customers, but to engender genuine loyalty.
Travellers have been reducing spend on leisure and lifestyle products, so attracting their attention and keeping it is more valuable than ever. Brands must offer customers a way to maintain their preferred lifestyle whilst also providing value for money and a high perceived value proposition.
Loyalty programmes are increasingly valued by professionals and consumers alike.
A recent study by GI Research showed that 95% of Financial Directors and managers considered them crucial in preventing customer defection, gaining and protecting a competitive edge, and ultimately delivering commercial success.
In addition, a survey by the Wyndham hotel group found that for one in five consumers would be unable to take a holiday unless they redeemed loyalty currency.
It is evident that well developed and well run loyalty programmes are highly valuable and provide additional benefits such as helping to build profitable long term relationships with customers and providing real insight into their needs.
However, it is vital that programmes are properly developed. To build long term customer relationships, brands must have a strategy that will not just meet customer needs but exceed them; above and beyond the core services and products offered.
A prime example is Boots recent overhaul of its 16 million strong Advantage Card database, whereby the retailer revitalised its proposition by increasing the number of co-branded promotions.
Co-branding and utilising partnerships can also provide a successful strategy to differentiate between loyalty programmes.
Best Western and Virgin Blue are two brands to recently expand their loyalty offerings by partnering with companies such as Debenhams, Apple and Nike, utilising a platform which allows customers to earn points or cash-back in a trusted and secure brand environment while maintaining their existing relationship with high profile retailers.
The travel sector must offer customers added value and differentiate its loyalty programmes, this is more evident here than in other sectors.
Research by Colloquy showed that travel loyalty programmes have suffered a decline of 31% in active participation since 2007.
Travellers previously used to the benefits of being a ‘preferred guest’ or ‘executive flyer’ are no longer experiencing these perks.
A way to regain these consumers attention could be to offer them the lifestyle previously accustomed to for a small monthly or annual membership fee, making them feel valued while also offering value for money.
To offer this value, travel brands must provide innovative products and solutions that will keep their customers satisfied.
Attempting to generate loyalty by cutting costs is a short term strategy at best.
Those companies that strengthen the relationship they have with their customers by offering them more will be able to protect their loyalty both now, and once the dust has settled on the post-recession economy.
Phil Davies
Tony from Gatto’s Pizza on Columbus’s Unique Pizza Trail
Sophia Hyder Hock on Global Social Inclusion in Tourism
Sustainable Tourism: Don Welsh on Community Values and Global Collaboration
Jane Cunningham: Enhancing European Engagement in Tourism
Kristin Dunne: Navigating Destination Strategy
Revolutionizing Mobile Connectivity: Boris Bijlstra on HUBBY eSIM
Capturing Glasgow’s Vibrancy: An Interview with Susan Deighan, Chief Executive of Glasgow Life
Lebua Hotel & Resorts: Rajan Khurana on Hospitality and Bangkok’s Charms
Sustainable Tourism and Growth: Insights from Chiravadee Khunsub from Tourism Authority of Thailand
Revolutionizing Travel: SmartSIM USA’s Dale Takio Unveils the Power of E Sims
TravelMole Interview with Hishan Singhawansa, Deputy CEO of Cinnamon Hotels & Resorts, Sri Lanka
Unveiling the Essence of Magari Tours: A Dive into Authentic Italian Experiences
EU airports bring back 100ml liquid rule
British Airways passengers endure 11-hour 'flight to nowhere'
CLIA: Anti-cruise demos could cause itinerary changes in Europe
Co-pilot faints, easyJet flight issues ‘red alert’
Dozens fall ill in P&O Cruises ship outbreak