Business Traveler, April 2020

A P R I L 2 0 2 0 b u s i n e s s t r a v e l e r u s a c o m 5 4 S P E C I A L R E P O R T Travelers want a loyalty program to be simple to understand and rewarding removing the liability of unredeemed miles from their accounting books Dedicated programs like Marriott Bonvoy Moments and World of Hyatts FIND Experiences are designed specifically around providing redemption opportunities for experiences that are otherwise hard to attain on your own You cant just purchase backstage concert passes but redemptions like these help build top of mind brand awareness with high value travelers Travelers want a loyalty program to be easy to use and rewarding The more complex a program becomes the more likely it is to lose business to a competitor This means that the experience must remain relatable and user friendly from start to finish whether through the use of uncomplicated online or mobile app booking and simple methods to join earn and redeem rewards from a program While many programs especially in the airline industry have made the process of achieving elite status more complicated travelers seem willing to learn new rules because they value the perks Some travelers may have a breaking point but the promise of free travel remains a strong motivator THE FUTURE OF LOYALTY According to Jerry Rash general manager of loyalty and customer strategy for Associated Luxury Hotels transparency is the new black He believes that consumers want transparency and authentic communication whether it is a hotel airline or retail program The focus should be on gaining and promoting trust not confusion Several years ago Delta SkyMiles deleted award charts from its website leaving travelers with no guide as to how many miles it would take to redeem for a free trip Instead the cost in miles for an award trip can vary and seems to be more closely tied to the fare This type of dynamic pricing removes the aspirational element to saving up miles to redeem for a specific trip and leaves travelers especially those new to the program confused United soon followed suit This causes damage to a programs perceived value adding complexity instead of convenience This is why many people find credit card loyalty programs like American Express Membership Rewards and Chase Ultimate Rewards more valuable Points can be redeemed like cash to offset the cost of travel providing a transparent and easy to understand benefit to members Flo Lugli founder and principal of Navesink Advisory Group LLC and non executive chair of the Global Hotel Alliance says that consumers are more demanding than ever before People may have initially joined a loyalty program as a way to save money but if they are to remain engaged they want special treatment and a feeling of recognition Millennials are more likely to want in the moment experiences that they can share via social media The growing trend of redeeming miles or points for experiences shows that One of the biggest motivators of true loyalty is the emotional connection a consumer has with a brand and yet most rewards are based on transactions says Lugli Loyalty programs will need to evolve beyond basic interactions to remain relevant and beneficial to travelers In the coming years we will continue to see changes in the way that brands structure loyalty programs and how customers benefit from them The creativity in what brands can offer members will only enhance the way we travel and interact with our favorite travel brands There is a lot of outsized value to glean from navigating the loyalty program landscape carefully Travelers who are dedicated enough to understand how to maximize a loyalty program and roll with the punches when rules change stand to benefit the most The future of loyalty is brighter than ever we just have to be flexible enough to take advantage of it BT Editors Note Starting in April watch for Business Traveler Rewards a monthly e newsletter that reports indepth on changes to loyalty programs and what they mean Each month you get an inside look at exclusive awards experiences unique loyalty related travel hacks plus get the latest points programs news To sign up visit businesstravelerusa com