The pandemic brought the need for a diversified reward portfolio into sharp focus. We saw many hotels leverage their programs to connect with guests when they couldn’t be on property, driving both customer engagement and revenue. As a result, from 2019 to 2021, there was an increase in the point earn and redemption offerings from hotel brands, as seen in the accompanying chart. In 2022 the industry seemed to refocus back onto core business as travel, particularly leisure travel, made a strong recovery. That trend now continues into 2023.
Not only did point earn and redemption options plateau from 2021 to 2022, with only a net of 4 additions from the hotel programs reviewed year-over-year, but that number is now in decline for 2023 with a net total of -1 additions to total point-integrated reward categories this year. The travel industry has experienced big swings over the last few years, and it’s critical for programs to keep pace to maintain relevance. With the current surge in demand and booking values, will we see a reinvestment in loyalty programs to capture the growing market?
The pandemic brought the need for a diversified reward portfolio into sharp focus. We saw many hotels leverage their programs to connect with guests when they couldn’t be on property, driving both customer engagement and revenue. As a result, from 2019 to 2021, there was an increase in the point earn and redemption offerings from hotel brands, as seen in the accompanying chart. In 2022 the industry seemed to refocus back onto core business as travel, particularly leisure travel, made a strong recovery. That trend now continues into 2023.
Not only did point earn and redemption options plateau from 2021 to 2022, with only a net of 4 additions from the hotel programs reviewed year-over-year, but that number is now in decline for 2023 with a net total of -1 additions to total point-integrated reward categories this year. The travel industry has experienced big swings over the last few years, and it’s critical for programs to keep pace to maintain relevance. With the current surge in demand and booking values, will we see a reinvestment in loyalty programs to capture the growing market?
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