How and Why The Travel & Leisure Industry should use Loyalty Schemes: The Statistics
Travel and leisure consumers are always keen to get more for their money, especially when spending large quantities on their travel and leisure activities. With around 96% of the UK population being part of a loyalty scheme, it’s clear to see how engaging and alluring a loyalty scheme really is. We are going to take an in depth look at some of the findings from our Travel and Leisure Insights piece in order to decipher how travel and leisure companies should be using loyalty schemes.
“82% OF TRAVEL AND LEISURE CONSUMERS WANT MORE INPUT IN SHAPING THEIR LOYALTY SCHEME EXPERIENCE”
Consumers want their needs to be heard and acted upon, therefore your loyalty scheme should allow for input from the consumer in order to give them the maximum amount of benefit from the scheme. Before beginning any loyalty scheme, you should conduct a vast amount of research, including having a conversation with your audience and finding out what it would take to keep them loyal. You might also want to consider giving your audience various options when it comes to rewards so they can choose which reward is most suitable for them.
“57% OF AIRLINES REWARD CUSTOMERS FOR AT LEAST ONE FORM OF ENGAGEMENT”
In order to determine which actions your customers are rewarded for, you need to know the value of each action. With 57% of airlines and 41% of hotel chains rewarding customers for at least one form of engagement, it’s clear to see that the industry is paying attention to the importance of rewarding certain activities. You may find that your customer’s third interaction is the most valuable to you, therefore you can reward the third action generously. This encourages positive buyer behaviour and gets your customers into the most profitable position within the purchase funnel.
“32% OF AIRLINE CUSTOMERS BELIEVE FLEXIBILITY OF HOW TO REDEEM POINTS IS THE MOST IMPORTANT FACTOR, FOLLOWED BY THE EASE OF THE PROCESS (24%)”
Getting your loyalty scheme’s processes locked down is fundamental to the success of the scheme, from sign up to redemption of rewards. Your scheme should be accessible by mobile, tablet and desktop to suit the requirements of your customers no matter where they are. Flexibility when redeeming rewards allows the customer to participate in the scheme at their own pace, therefore encouraging participation from various audiences.
“33% OF TRAVEL MANAGERS SAY THEY ACTIVELY INFORM TRAVELLERS ABOUT HOTEL LOYALTY PROGRAMS”
Loyalty programs are a real talking point and a differentiator when it comes to the travel and leisure sector. Having a loyalty scheme might just be the deciding factor for a customer when deciding whether or not to choose your services, and with 33% of travel managers’ actively informing travellers about hotel loyalty programs you might find that your loyalty scheme gets you noticed a lot more. 86% of Corporate Travel Managers also agree that hotel loyalty programs play an important role in their negotiations with hotels, therefore a loyalty scheme may also improve your hotels business partnerships.
“MORE THAN 71% OF THOSE MAKING £70,000+ PER ANNUM ARE ENROLLED IN A LOYALTY SCHEME”
High earning customers are always keen to enrol in a travel and leisure loyalty scheme as they realise that the more they spend, the better their rewards will be. This makes loyalty schemes a very attractive offering to the more affluent customers that you may want to reach. Also, 66% of travellers making £140,000+ per annum are likely to spend money when they think they have found a “good deal”, such as those offered to loyalty program members. This really highlights the importance of loyalty schemes when looking to attract more profitable customers.
It’s important for anyone looking to introduce a loyalty scheme into their business to do thorough research first and these statistics can help to shape the loyalty scheme going forward. Of course, you will need to conduct in depth research of your business’s own audience, however as a starting point, please look at our research piece on loyalty schemes within the travel and leisure industry.