The silver lining from any period of turbulence–the pandemic included–is that challenge and change give rise to innovation and learning. The topics and takeaways from the recent Skift Travel Loyalty Summit exemplified this buzz of experimentation and excitement for the future of loyalty and the travel industry.
Our CEO Rob MacLean was there to discuss How Loyalty Strategies Are Driving Travel Innovation with SkiftX research editor Dan Marcec. We’ve gathered five key takeaways from the session that forecast where loyalty is headed and what innovations are driving its growth.
Despite travel restrictions, travel brands saw strong engagement between their loyalty programs and their members during the pandemic. In some cases, programs achieved record-breaking points/mileage sales and activity. Loyalty members have a passion for travel, and they held a clear belief that one day, no matter how far off it sometimes seemed, they’d get back to the places and people they love—preferred loyalty programs included!
Loyalty programs are quickly becoming the crown jewel of their parent companies. Over the past two years, rewards programs have outperformed parent company expectations, forcing a shift from being viewed as cost centres to revenue giants. As a result, these programs are garnering the attention and investment needed to develop this line of business and expand its mandates.
Want to accelerate the pace of travel recovery? Look to engage your high-value members. Retailing program points/miles to members is a proven strategy for fostering engagement and securing future bookings and brand affinity. (We’ve actually got a lot to say on that topic if you want to read more.)
Gone are the days of blasting mass communications to millions of members. Today’s member databases are as vast as they are complex. Modern loyalty marketing requires highly skilled teams to determine the right offer, price point, timing, and messaging at a member level. To succeed in the world of overloaded inboxes and crowded media bids, programs need to be a lot smarter and more efficient in their campaigns and communications.
Members don’t want to be pigeonholed into earning and redeeming for flights and hotel stays alone. The pandemic highlighted a growing demand from members who want to engage with their programs and rewards currency on day-to-day perks and unique experiences outside of travel. Being prepared for this consumer shift through strategic partnerships and products will be integral to keeping the best members and acquiring new audiences, like the much-coveted Gen Z and Millennial groups.
For more on these topics and more, watch the full interview below: