The loyalty program as we know it was pioneered by American Airlines over 30 years ago. A lot has changed since then. As travel has become commoditized in many areas, suppliers and retailers have become more innovative and creative about attracting, retaining, and rewarding customers. While customers have become savvier about maximizing and sometimes even gaming the system. The premium credit card companies have added their own layers of complexity. And of course, the pandemic accelerated many changes to the structure of loyalty programs that were already being tested.
So what does the state of loyalty look like in travel today and where is it heading? How do brands think about lifetime value, rewards, and community? How is that changing with the increased focus on Gen Z and millennial travelers? In an environment where nearly everyone has some form of “elite” status and loyalty points as a currency can get devalued, what exactly are travelers “loyal” to anyway?
And what are the most innovative brands in our industry doing about it? Innovations that include traditional loyalty offerings but go much further with subscriptions, personalization, and more.
We talk to two experts who have the inside scoop on what loyalty means in travel these days.
Follows:
Gilad Berenstein - host
Cara Whitehill - host
Brett Catlin - guest
Ryan Smith - guest
Go Deeper:
- Travel invented loyalty as we know it. Now it’s time for reinvention. / McKinsey
- Why I Won’t Chase Airline Status, The Points Guy
- This luxury hotel group wants to charge you $200 to join its loyalty program—it just might be worth it, Fast Company
- U.S. to Investigate Airline Loyalty Programs, Skift
- Too many elites: Why you might want to be a free agent and skip elite status next year, The Points Guy
- Alaska Airlines Debuts Subscription Model for Flights - Skift