The concepts of value and loyalty have always been linked, to some degree, in American consumers’ minds. If consumers perceive that they are receiving value from a brand, they will likely continue patronizing it. That is, perhaps, the most straightforward definition of loyalty available.
But emerging from nearly two years of surging inflation rates, rising prices, and increased demand for all kinds of goods and services, it’s hard to argue that there has been a time when those two ideas have been more closely linked.
Brands, including travel brands and financial services providers, have long understood this relationship and have built comprehensive loyalty and retention strategies around it. However, how effectively they have done so in the eyes of American consumers is up for debate.
Although there is tremendous interest in and demand for travel loyalty programs across North America, there is also plenty of room for improvement–and innovation potential. While what consumers value most in loyalty programs is evolving along with global economic changes, the gap between what travellers want and what brands are investing in still stands.
In the second half of 2023, we surveyed 151 loyalty program managers and 2,116 U.S consumers to identify key themes about loyalty program member needs and loyalty program manager priorities and challenges.
This was our second year fielding such a survey; while our 2022 data revealed several (and persistent) disconnects between brands and consumers, which created opportunities for loyalty programs to create more value for their members by meeting customer needs, the overarching finding in our latest survey reflects consumers’ desire for value.
Driven by rising prices across every aspect of life, consumers increasingly look to their loyalty programs to save money and provide the value they can’t get from other brands or programs. Value, therefore, is a driving force for loyalty program member engagement.
For brands, the key to unlocking that value–and ultimately driving revenue and increased engagement with the brand–is through their loyalty program experience. Brands can enhance that experience with sustainable travel options, more fintech and shopping tools that make travel more affordable, personalized interactions, convenient and full-service travel booking capabilities, and differentiated lifestyle rewards that complement travel or provide everyday savings.
This report draws on data from our 2023 survey and comparisons with 2022’s findings to identify technological and strategic improvements that brands and their loyalty program providers can focus on to positively impact customer experience and engagement and, ultimately, loyalty program performance.
To achieve this, some results from 2022 have been restated to more accurately align with the composition of the 2023 respondent pool, which was made up entirely of US consumers with current memberships in a travel rewards program.
The resulting findings paint a clear picture of travel loyalty program dynamics at the beginning of 2024: consumers are putting a clear premium on value, and while brands are trying to pivot toward this demand, there remain some disconnects stemming in part from brands’ evolving priorities. Ultimately, the path forward lies with the loyalty program experience itself, which can be augmented with the right loyalty platform that offers flexibility, configurability, and an extensive portfolio of complementary rewards.
The concepts of value and loyalty have always been linked, to some degree, in American consumers’ minds. If consumers perceive that they are receiving value from a brand, they will likely continue patronizing it. That is, perhaps, the most straightforward definition of loyalty available.
But emerging from nearly two years of surging inflation rates, rising prices, and increased demand for all kinds of goods and services, it’s hard to argue that there has been a time when those two ideas have been more closely linked.
Brands, including travel brands and financial services providers, have long understood this relationship and have built comprehensive loyalty and retention strategies around it. However, how effectively they have done so in the eyes of American consumers is up for debate.
Although there is tremendous interest in and demand for travel loyalty programs across North America, there is also plenty of room for improvement–and innovation potential. While what consumers value most in loyalty programs is evolving along with global economic changes, the gap between what travellers want and what brands are investing in still stands.
In the second half of 2023, we surveyed 151 loyalty program managers and 2,116 U.S consumers to identify key themes about loyalty program member needs and loyalty program manager priorities and challenges.
This was our second year fielding such a survey; while our 2022 data revealed several (and persistent) disconnects between brands and consumers, which created opportunities for loyalty programs to create more value for their members by meeting customer needs, the overarching finding in our latest survey reflects consumers’ desire for value.
Driven by rising prices across every aspect of life, consumers increasingly look to their loyalty programs to save money and provide the value they can’t get from other brands or programs. Value, therefore, is a driving force for loyalty program member engagement.
For brands, the key to unlocking that value–and ultimately driving revenue and increased engagement with the brand–is through their loyalty program experience. Brands can enhance that experience with sustainable travel options, more fintech and shopping tools that make travel more affordable, personalized interactions, convenient and full-service travel booking capabilities, and differentiated lifestyle rewards that complement travel or provide everyday savings.
This report draws on data from our 2023 survey and comparisons with 2022’s findings to identify technological and strategic improvements that brands and their loyalty program providers can focus on to positively impact customer experience and engagement and, ultimately, loyalty program performance.
To achieve this, some results from 2022 have been restated to more accurately align with the composition of the 2023 respondent pool, which was made up entirely of US consumers with current memberships in a travel rewards program.
The resulting findings paint a clear picture of travel loyalty program dynamics at the beginning of 2024: consumers are putting a clear premium on value, and while brands are trying to pivot toward this demand, there remain some disconnects stemming in part from brands’ evolving priorities. Ultimately, the path forward lies with the loyalty program experience itself, which can be augmented with the right loyalty platform that offers flexibility, configurability, and an extensive portfolio of complementary rewards.
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