Travel Loyalty Club

Travel Loyalty Clubs: Understanding Earning, Value, & Redemption

The ability to save up miles through a travel loyalty club is what gets millions of budget-conscious travelers enrolled in them. Many will admit that it is much easier to focus on saving for their next vacation when they receive points or earn miles every time they make a qualifying purchase. Being able to watch what their loyalty is going towards makes joining much more lucrative for a member

However, there are still users tempted to join a loyalty club, only to find it fearfully complex. Blackout dates, tight restrictions or inability to understand their standing within the rewards platform may leave users wary of committing.Reaching these users can be challenging, but providing them security and simplicity in their membership will give them much more confidence in joining and becoming a valuable loyalty member.

Who is the ideal user?

Every loyalty reward program is different. Generally speaking, the latest mile-based reward programs are different from their traditional counterparts making them ideal for people who meet the following criteria –

  • Flexible travel destinations
  • Prefer simplicity and predictability of program
  • No airline preference
  • Generous travel benefits
  • Travel dates are often flexible
  • Often travel internationally
  • Enjoy receiving value-added benefits

Earning

Loyalty club members can earn miles or travel club loyalty points on purchases by simply providing their membership details while completing the purchase. Some loyalty programs also throw in additional perks such as seat upgrades, airport lounge access, free meals, extra legroom, baggage rebate and more to their elite members. This adds flexibility for travelers who wish for upgrades nonetheless without paying from their own pocket.  As the world “shrinks” due to travel becoming more convenient, travel-based rewards become much more valuable.

Value

Loyalty cubs incentivize frequent or elite members to remain loyal with membership status tiers. Membership tiers are assigned as per their spending behavior and the number of purchases. Each tier progressively attracts more benefits and perks such as priority boarding, complimentary stays, spa packages and luxurious benefits such as member-only discounts on luxury purchases at the high end. 

Redemption

A key for user convenience and satisfaction is allowing them to redeem miles directly on the original booking platform, ideally your brand’s travel club or loyalty platform. In addition to miles, hotels and car rentals often market their rewards as ‘points’ which can be exchanged further for add-ons such as complimentary stay, free breakfast, car rental upgrades and more. Loyalty conversions can vary widely, but allowing users to spread out their points and even mix them with part-cash gives them satisfaction through savings and engagement through using your site to book their travels.

Above all, users are seeking a loyalty program that they feel provides real value and is worth their time and money they are spending in order to receive the benefits in the first place. So take into account the value and redeeming aspects when planning how to reward your most engaged users.