back icon Back Insights 06/02/2023

5 Ways To Diversify Travel Rewards Programs With New Consumer Options

As the number of travel rewards programs available to consumers continues to grow, it’s becoming increasingly important for these programs to stand out from the competition. Businesses are trying to gain and retain customers. Unfortunately, the lack of variety and originality in the programs can make members disinterested.

Travel rewards programs must offer diverse and unique options to satisfy and engage customers. This will ensure a wide range of consumer preferences are catered to.

Here are five ways that travel rewards programs can diversify their offerings:

1. Introduce New Travel Products and Services

Introducing new travel products and services to your travel rewards program can give you a competitive edge by offering unique rewards. What are some examples of new travel products and services that can enhance the value of your travel rewards program? Here are a few to consider:

  • Travel insurance
  • Airport lounge access
  • VIP airport services

But how can you successfully introduce new travel products and services to your rewards program? It all starts with understanding your target audience, their preferences, and needs. By doing thorough research, you can choose travel products and services that align with those preferences, making the rewards program more attractive and valuable to customers.

In addition to researching the target audience, it’s also crucial to have a well-thought-out marketing plan in place. Personalized marketing experiences make all the difference in engaging customers and encouraging them to take advantage of the new travel products and services you are offering. 

2. Add Non-Travel Rewards to Loyalty Programs

Travel rewards will continue to be the main feature of loyalty programs. However, offering non-travel-related rewards can attract a wider audience, which can help to draw in more customers. For instance, a travel credit card could supply cashback rewards that can be applied to any purchase.

Another version of this idea could be gift cards for certain retail chains or dining rewards for well-known restaurants. Even providing discounts for entertainment such as movies, concerts, and sporting events can revitalize the stale offerings of a program. Providing non-travel related options will make any rewards programs more inclusive, as the benefits will extend to those not just interested in travel.

3. Offer Flexible Redemption Options

Customers often complain that points can be hard to redeem as sometimes there is only limited availability. Other times, restrictions apply, or a frustrating redemption process is in place, making redeeming points more hassle than it’s worth.

Customers may find offerings that appeal to them, however, the goalpost can move due to changing inflation or other overhead costs, which can vary over time. As a result, points and miles devaluate, creating a bad customer experience. The goal is to offer customers enticing products that invite convenience and satisfaction into their lives, not cause headaches.

Try some of these tactics to offer flexible redemption options:

  • Multiple redemption options: Allowing rewards to be applied to various travel services, including flights, hotel stays, car rentals, and more.
  • No blackout dates: Members of rewards programs often find they can’t redeem rewards during peak vacation times, which can be disappointing. Removing this obstacle makes all the difference to your customers.
  • No expiration dates: Expiration dates can cause all of your accrued points to disappear suddenly. Nobody wants that. Removing them can add so much value to a program.
  • Partial redemptions: The ability to use rewards for partial payments on travel expenses rather than the all-or-nothing approach. By breaking each reward down into tiers that might offer discounts, members are encouraged by more attainable goals.
  • Bonus Points: To create additional value and drive travel bookings, you could consider adding the opportunity to earn 4X points on certain days as a special promotion.

4. Partner with Travel Companies for Exclusive Rewards

Partnerships with travel companies are a surefire way to diversify travel rewards.

For example, airline and hotel loyalty programs can partner with each other to offer discounts or special rates. By offering rewards not available anywhere else, programs can attract customers looking for unique travel experiences.

Consider the opportunities that can occur when forming a partnership with:

  • Luxury hotels, spas, and resorts
  • Adventure travel companies
  • Private jet and helicopter tour companies
  • Unique dining experiences

These specialized rewards can give members a reason to choose one program over another and create a sense of loyalty. 

 Group of young people walking on a vacation booked through a travel rewards program.

5. Utilize Personalized and Targeted Experiences

Personalization is becoming increasingly important in all aspects of marketing, and travel rewards programs are no exception. By analyzing customer data and behavior, programs can offer travel experiences that are tailored to each member’s preferences. For example, a program could institute earning points for frequent repeat travels to a specific destination or offer a discount on a hotel in a city the customer has previously expressed interest in.

Maybe the program does not need to zero in on that level of detail. Maybe it is enough for airline credit cards to consider different lifestyles.  Whether it is diversifying your points to specific packages like luxury spa stays or extravagant adventures.

Or the offering could be something as simple as earning points for their routine loyalty to a certain airline or hotel chain. By giving the option of personalized rewards like this, travel rewards programs can create a stronger connection with their members and increase engagement.

Expanding Your Travel Rewards Horizon

Travel rewards programs do not have to be one-size-fits-all. Standardizing offerings into templates can limit what customers can get.

Offering only standardized travel rewards across the board will cause customers to compromise their desired outcome. Creating personalized and unique travel experiences is a guaranteed way to please the most members of a rewards program. Renovate existing products and services, or adjust them to attract a wider audience. Doing so will increase enthusiasm and participation.

Arrivia: A Leader in Diversified Travel Rewards Programs

Arrivia is a leader in the travel rewards industry. We offer a range of programs to suit different customers, and our programs provide the flexibility to meet the needs of a variety of customers.

Our programs include both traditional travel rewards. Arrivia also partners with leading travel companies to offer unique rewards unavailable to the general public. Additionally, our rewards are highly personalized, with offers tailored to each member’s specific preferences.

By partnering with arrivia, you can leverage the exotic allure of our platform to attract new customers, members, or employees and engage them through customized marketing experiences. Schedule a demo with us today!