Participation in travel industry reward schemes has declined by 31%, according to the latest trend report from Collinson Latitude, a global provider of incremental revenue products.
Reward schemes see 31% drop in participation
Participation in travel industry reward schemes has declined by 31%, according to the latest trend report from Collinson Latitude, a global provider of incremental revenue products.
With only a third of programme members regularly redeeming their loyalty currency, travel industry firms are being warned of the need to embrace new technologies if they want to reap the benefits of an engaged customer base.
The report, ‘Making your loyalty currency irresistibly valuable every day’, emphasises the need to ensure that loyalty schemes are relevant to their members and different enough from those of competitors if they are going to be successful.
Jane Titterson, Collinson Latitude director, said: “There is significant scope for both hotels and airlines to be much more innovative with evolving technologies.
“The best loyalty platforms need to fit with clients’ existing platforms whilst also being able to respond to – and grow with – further technological advances.”
The report also cites emerging technologies as a key area in which customer engagement can be improved across the travel loyalty industry, with confirmation emails, m-commerce and tailored product recommendations high up the list of desirable attributes for companies wishing to stay ahead of the curve.
Titterson continued: “The Amazon model, for example, has demonstrated to great effect that consumers respond exceptionally well to tailored product recommendations.
“‘Other people who bought this product also viewed these items…’ is a very simple and powerful technique. With the assistance of emerging technologies, airlines and hotels should employ similar tactics.”
