Loyalty Programs in the Travel Industry

Americans hold a total of 1.8 million loyalty club memberships and average 14 rewards programs per household, but when it comes to travel, consumers are seeking new routes to rewards. Restrictions and requirements (blocked dates, fees, expiration dates, etc.) leave them frustrated. They want flexibility, convenience and relevance — they want rewards that promise choice, practicality and personalization. According to a study by Hotels.com, 93% of consumers feel that improvements need to be made to their loyalty program memberships.

Third-party websites are helping consumers better leverage these rewards. Best Western’s Status Match, No Catch deal lets any elite rewards members enjoy the perks. Sites like Points.com and LoyaltyMatch.com let people trade frequent-flier miles from one airline to another, or for hotel rewards points, merchandise or cash. Placely.com is a one-stop social networking site where travelers can input, store and manage all their frequent-flier information, and AwardWallet.com keeps tabs on the best rewards programs on the market.

Airlines are also revamping their traditional programs, with an emphasis on accessibility. United, American, and Delta now allow for one-way rewards usage; members can redeem points for one-way flights (or half the number of miles required). United’s Miles and Money and Delta’s Pay with Miles both let members combine cash with miles to book their trips. At Delta’s SkyMiles Marketplace, members can redeem their miles, or a combination of miles and cash, for more than 6,000 items, including hotel rooms, car rentals, consumer electronics, clothing
and jewelry.