The full potential of loyalty programs wasn’t realized until 1980s. Today, they are everywhere in the customer-centric industry. But are loyalty efforts profitable? The answer is yes.
The top online travel agencies (OTAs) invest billions of dollars for one purpose – to get the right travel products to the right customers at the right time. Major OTAs like Expedia have been successful by creating multiple brands across different websites targeted to different audience segments.
Travel clubs are undoubtedly the new ‘it’ thing. If you are wondering why, just look into the range of services and features they offer to your business. As a member, you get access to insider deals, rewards, preferential rates, special promotions and more.
Brand engagement is the core of any travel business model. The end goal of travel club membership is to increase customer retention and enhance the lifetime value of your customers. It does so via its loyalty programs that enhance customer engagement and consequently increase repeat purchases.
What led the airline industry to introduce the original “frequent flyer program” (FFP) concept? Remember, this was long before retailers popularized the “loyalty program” concept.
Loyalty can never be truly bought… but it can be earned or built through rich, rewarding customer experiences. The first step to fostering brand loyalty is to produce a solid base of repeat customers – brand loyalists – who are 67% more likely to spend than the new ones.
In the past ten years, services like Airbnb, Lyft and Uber have gone from being the cool/new “disruptors” to being the face of a new economy – a “sharing economy,” as it’s called.
If you’re part of a timeshare company, you know the hard work it takes to run a timeshare successfully. It may be paradise on the actual property, but behind the scenes you’re forever hustling to keep sales high, minimize default rates, and (in your spare time) scouting and acquiring luxury real estate.
Many would argue that American Express and other card companies are really travel and lifestyle clubs at heart. Why would consumers pay hundreds of dollars in annual fees to use an Amex Platinum card, or thousands of dollars to use an Amex Centurion?
The travel industry is one of the biggest sectors in the world, which accounts for almost 10% of the global GDP. Though, in the last few years, we have seen a drastic change in the travel and tourism industry.