Checking out of a hotel room or disembarking a plane used to have a certain finality to it.
Travelers and brands parted ways at the end of the journey, and customer loyalty didn’t go beyond collecting miles or points.
Now, reimagined travel experiences are extending customer engagement beyond the trips themselves. And the relationships between brands and travelers are no longer grounded on simple transactions.
Travel brands are going beyond simple rewards to redefine loyalty programs around customer service, customer journeys and customer trust.
A service industry at heart
From “Putting on the Ritz” to putting up with steerage, travel has always encompassed a range of experiences. Yet travel - elegant or economical, rushed or relaxed - is an industry predicated on service. And in terms of loyalty programs, an increased richness of what’s an offer calls for increased simplicity in how it’s offered.
But current loyalty strategies are often challenging experiences for travelers. Points and status tiers are difficult to track, redemption can be confusing, and high thresholds often deprive all but the most frequent travelers.
That’s not to deny the importance of traditional programs; 42% of cross-industry executives view traditional rewards as a key driver of success, according to Beyond Rewards, a report on loyalty trends by Harvard Business Review Analytic Services. But even more executives (51%) view customer service as a success driver.
The most effective way to build long-term loyalty is through personalized experiences, often delivered in a digital-first environment, that give travelers more choices.
Most executives (57%) say forging emotional connections is the primary reason for investing in customer loyalty, according to the Beyond Rewards.
By connecting traditional points with payment cards, consumers can spend them like cash on more emotional experiences such as exclusive access to travel lounges and events, such as sports games and concerts.
The emotional connection may be as simple as earning bonus miles at everyday retailers through American Airlines’ SimplyMiles, or it may mean accessing competitive fares and exclusive services through direct partnerships between airlines and online travel agencies.
It may also include building long-term relationships through in-person experiences, such as InterContinental Hotels Group’s tennis clinics hosted by Andy Roddick for U.S. Open attendees.
Customer journeys
Smooth travels and easy connections between destinations are staples of good customer journeys. And now airline brands are tapping into technology to expand that journey experience beyond just getting from point A to point B.
App and program refreshes are now focusing on holistic approaches to the consumer experience. The replacement of disparate offerings with all-encompassing digital-first (or at the very least digital same) approaches allows brands to prioritize convenience, flexibility and choice.
For example, the travel search brand Skyscanner closed its standalone travel recommendations app to consolidate its offerings in response to consumer demands for insider knowledge, destination information and purchase options to all be in one spot.
And personal travel app CheckMyTrip now uses artificial intelligence to power its recommendations and offer a more predictive and personalized service.
Travel loyalty is also in line with the broader cross-industry trend to invest in mobile capabilities, according to more than half of respondents in the Beyond Rewards.
The Singapore Airlines app has built-in natural language processing and image recognition tools to identify local destination content and provide real-time translation during travel. It even offers an augmented reality tool to help travelers determine if their carry-on is the right size with a simple scan.
Providing convenient, seamless solutions at every point in the travel journey—from research to booking to memorializing the trip—is keeping consumers engaged on all levels.
A home away from home
Trimmings aside, consumers rely on travel brands to safely transport them to their destination and back home again, and create safe environments for them to experience the world. And that takes trust - a trust that is the foundation of long-term loyalty, and which travel brands establish through continuous meaningful experiences.
Built-in travel insurance, travel assistance, concierge services or even lowest price guarantees can offer travelers peace of mind and those all-important emotional connections.
But one of the most significant ways to build trust is reassuring customers that their data is safe: 61% of consumers say they would stop shopping with a company if it suffered a significant data breach, according to Become, a 2020 study on innovation also by Harvard Business Review Analytic Services.
That’s particularly relevant for travel brands because of the sensitive personal data transmitted across multiple channels, such as home addresses, passport numbers, immigration status and family details.
Embedding cyber security at every level and with every product is key to building trust and long-term brand affinity.
Most consumers today reject the idea of measuring their success by what they own. Instead, they value both the special, unique moments in their lives as well as the everyday experiences that make life more convenient, rewarding and memorable.
Take, for example, TD Bank’s TD for Me location and interest-based digital concierge, which provides nearby offers, tips and details on local events and suggestions when traveling abroad.
When experience is everything to consumers, creating unique, digital-first and contextual experiences across the entire travel journey is central to building long-term, emotional loyalty.