With the increase in travel and growing reliance on credit for experiences, one might expect brand loyalty to become more straightforward. However, consumers continue to prioritize finding the best deals even during times of inflation to make their desired experiences possible.
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GLOWith the increase in travel and growing reliance on credit for experiences, one might expect brand loyalty to become more straightforward. However, consumers continue to prioritize finding the best deals even during times of inflation to make their desired experiences possible.
American Express’ latest earnings results show that its growth is largely driven by younger consumers. The company witnessed a 10% increase in consumer billed business, reaching $155 billion, with overall card spending reaching a record high. Travel and entertainment-related expenses also surged by 14% when adjusted for foreign exchange fluctuations.
American Express emphasized that over 60% of new consumer accounts were associated with millennials and Generation Z, contributing to a significant 21% increase in their overall spending compared to the previous year.
While Delta Air Lines and American Express have reported growth in travel and spending from young consumers, it’s important to remember that these are just two examples in a competitive landscape. Various factors and players shape the dynamics and trends in the travel and payments industry.
Recent times have shown that maintaining loyalty is challenging, but one factor consistently stands out: bargain prices, especially for the ever-changing and unpredictable consumer demographic.
Ennismore, a global lifestyle hospitality company, believes that fostering loyalty is achievable by aligning with consumer habits. They have launched a unique travel and food membership program called Dis-loyalty, which rewards consumers for embracing new adventures and exploring. Unlike traditional loyalty programs, Dis-loyalty doesn’t require accumulating points or progressing through tiers; members receive instant perks from sign-up and enjoy flexibility in bookings and benefits.
As inflation prompts consumers to be more discerning with their spending, retailers have an advantage over brand loyalty. Ulta Beauty’s Ultamate Rewards loyalty program, with over 40 million members, exemplifies success in engaging consumers through personalized offers and rewards. The program’s focus on delivering continuous value and tailored experiences has resulted in 95% of Ulta Beauty’s sales being linked to its loyalty program.
