As travel demand returns, loyalty programs are on the operating table. Companies are betting big on reinventing their loyalty programs, and it is high time. Many point programs had run stale years before the pandemic, becoming increasingly commoditized and a complicated tale of conversion rates, qualifying dollars, and blackout dates.
Maybe counterintuitively, loyalty program membership has boomed over the past two years, despite the fact that demand for flights and stays were dramatically down in 2020 and 2021. But loyalty companies cannot rest on their laurels, as the pandemic has changed traveler behavior and demands. Loyalty programs will need to follow suit to match a new travel mix.
In this report we first discuss the financial state of loyalty programs, focusing on key indicators like membership numbers, recognized revenues, liabilities, cash flow, member value, and loyalty contribution. We then analyze how Covid-19 has changed traveler demands, and how loyalty programs should respond.
What You'll Learn From This Report
- The financial state of the six largest airline and five largest hotel travel loyalty programs.
- Comparisons of membership numbers, recognized revenues, loyalty cash flows, member value, and loyalty contributions.
- The impact of Covid-19 on traveler behavior, and how this impacts loyalty programs.
- A discussion on how loyalty programs can respond to changing market forces and competition.