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Travel loyalty programs are prioritizing consumer value and business profitability for sustained success in the year ahead
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GLOKey findings:
- Attracting new members has been a focal point for loyalty programs during 2021 – 2023
- A larger proportion of our 2023 respondents offer travel rewards (95% vs. 65%), programs with travel booking capabilities have significantly increased, soaring from 61% to 84%.
- Companies are also planning to offer new travel rewards or benefits soon (up from 63% to 84%).
- Key objectives of the loyalty programs are:
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- Increasing customers’ lifetime value
- Rewarding high- value customers
- Keeping customers engaged
- Key goals for 2024 are:
- Increase membership
- Introduce new rewards and/ or earning and redemption options
- Increase total spend through the loyalty program
- Biggest challenges for 2024:
- Maintaining appropriate customer service levels
- Attracting new members
- Providing rewards customers find valuable
- Key path to achieve higher engagement is through Intelligent Loyalty Strategy, a Flexible Loyalty Currency, Effective Marketing and Superior Customer Service
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Methodology
The results in this report are from an online survey conducted by arrivia and the research firm, Researchscape, of 101 loyalty program administrators and loyalty professionals in the U.S. and 2,216 U.S. consumers that belong to one or more travel loyalty programs. The survey was fielded in September 2023.
