Dive Brief:
- About half of consumers say they are extremely or very likely to engage with loyalty programs that offer travel options, according to a survey of 1,094 shoppers released by arrivia last month.
- Consumers showed more interest in travel-based loyalty programs for certain categories. Nearly 9 in 10 respondents said they would be very or extremely likely to book travel through a luggage brand’s loyalty program.
- Nearly half of respondents said they would book travel through a loyalty program if it meant they would access better prices than via other travel websites. Another 2 in 5 said they would be more likely to book with a loyalty program if it provided convenient ways to redeem their points earned through these bookings.
Dive Insight:
Travel options can help loyalty programs stand out by adding an experiential component to loyalty programs, but financial benefits and convenience remain important.
Younger consumers are particularly interested in experiential benefits. More than one-third of millennials and 2 in 5 of Gen Z respondents said they value unique travel opportunities.
“Travel rewards present a differentiated loyalty approach to retail loyalty by moving beyond traditional points and discounts, aligning instead with consumers’ desire for experiential, lifestyle-driven incentives,” Jeff Zotara, chief marketing officer at arrivia, said in an email.
Travel options can also drive customer retention and business results, according to Zotara. More than half of respondents said they would use points from travel bookings to purchase products from a retailer.
Complexity can still be a problem for loyalty programs with both travel and retail benefits. If the rewards feel confusing or restrictive, that presents a significant turnoff for customers, according to Zotara.
“Brands should also ensure the rewards experience is simple and transparent by clearly communicating value, outlining redemption steps, and avoiding blackout dates or complicated restrictions,” Zotara said. “A mobile-friendly interface and straightforward user journey can further enhance participation and perceived value.”
Another best practice is to integrate travel booking directly into the platform, rather than redirecting customers to a third-party site, according to Zotara. Loyalty members should be able to browse, book and redeem points in a single, seamless journey.
