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Beyond points: Rethinking loyalty and brand consistency

  • phocuswright.com
  • 21 November 2024
  • 2 minute read
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This article was written by Phocuswright. Click here to read the original article

image

Similarly, travelers feel unimpressed by the idea of defining loyalty through a customer’s likelihood to upgrade or add ancillary purchases to a travel booking (22% ranked), though this was viewed more favorably by millennials than others.

The most common action travelers consider to be a signal of loyalty is using the brand over a long period of time (53% ranked). This attitude is far more popular among boomers and the Silent Generation than their younger counterparts, likely because their age groups have had the longest amount of time to build up that longitudinal loyalty.

Other popular definitions of loyal travel behaviors are using the brand whenever there is opportunity to take a trip (48% ranked), which was more popular among boomers and the Silent Generation as well (56%). In contrast, viewing loyalty as frequent use of the brand throughout the year was popular across age groups, but much more supported among super frequent travelers (50% ranked among those who took 6+ leisure trips per year) compared to infrequent ones (39% of those who took 1-2 leisure trips per year). Travelers also showed respect for brand evangelism, which 41% felt was one of the most important ways to demonstrate loyalty.

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Though not the most popular articulation of loyalty, 35% of travelers considered it important to achieve high status within the loyalty program itself. Millennials put more emphasis on this compared to other generations. Despite some acknowledgement in the importance of status, it isn’t necessarily viewed as attainable. Only 11% of leisure travelers took six or more leisure trips within their past year of travel, and within that elite group, 35% still feel that they don’t travel enough to earn high status with travel loyalty programs. So while they may respect status, they may also find more practical motivation in programs that reinforce smaller or more achievable steps.

When discussing what might incentivize more consistency in usage of travel brands, prices played a very strong role. Cost was the clear leading incentive to patronize a brand more often:

The importance of price competitiveness and value (the price charged relative to the perception of the offering) are evergreen but may be amplified in the current season of macroeconomic strain and insecurity.

For brands that are not able to compete on price alone, or those for whom price competitiveness does not align with broader business strategy, travelers brought up loyalty programs and perks or gifts as other features that could motivate more regular bookings. Small gestures can make a big difference in the overall brand relationship:

To continue reading, purchase the report or subscribe to Phocuswright Open Access.

The full report analyzes:

  • Preferred Brands & Consistency
  • Traveler Perceptions of Loyalty
  • Novelty and Loyalty at Odds
  • Luxury and Variety
  • Is Gen Z Disloyal?
  • and more

Phocuswright powers the travel industry’s smartest decisions. Our in-depth insights and analysis give you the confidence to act decisively, stay ahead of the curve, and outperform the competition.

Get the most out of our insights with an Open Access subscription. Explore how it can propel your business.

Please click here to access the full original article.

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