New report identifies four elements of an effective travel loyalty program

Travel brands looking to
optimize their loyalty programs to attract and retain customers should focus on
four areas: sustainability, lifestyle rewards, personalization and integration
of fintech tools.

That is the finding of an
analysis by iSeatz based on its survey of more than 150 loyalty program managers and more than 2,000 consumers
in the United States and compiled in a report, The
2024 Loyalty Trends: The Role of Travel Loyalty Programs in the New Value
Economy.

The
report details the changing dynamics of loyalty programs for airlines, hotels
and financial services companies and alignment between brand offerings and
consumer expectations and desires.

“The findings in our 2024
Loyalty Trends Report underscore the need for brands to adapt to [and align
with] shifting consumer priorities. It’s not just about offering rewards; it’s
about creating a seamless, personalized and value-driven loyalty experience,”
said Kenneth Purcell, CEO of iSeatz.

The
survey found value is a critical factor for travel loyalty programs. Nearly
half (49%) of consumers said saving money on travel was the most important
part of their loyalty program, and 65% said they would engage more with their
loyalty program if offered better discounts. 

Sustainability
is also top of mind for travelers. More than half (55%) of consumers said they
would choose one program over another if it prioritized sustainability, and 60%
of brands saw reduced churn and increased retention after implementing
sustainability initiatives. 

Lifestyle
rewards are also important to consumers, especially those that complement the
travel experience – and travel companies are listening. More than a third of
companies surveyed plan to invest in tours and activities over the next year,
compared with just 15% in 2022.

And
consumers also indicated a desire for fintech tools that make their travel more
affordable or that take the risk out of purchasing a trip. Almost three-quarters
(73%) of consumers said they would be more likely to book travel with their
loyalty programs if those programs offered services such as price alerts,
price-drop guarantees, “cancel for any reason” or buy now, pay later.