Travel incentives remain one of the most reliable and relevant loyalty program perks for American consumers. American consumers take 2.29 billion domestic trips and 93 million international trips annually. Last year, nearly 60% of Americans took at least a week’s vacation to a destination away from home.
With 80% of consumers planning to travel more than they did the previous year, now is the ideal time to incorporate travel perks into your loyalty program. Consider how you can drive a higher perceived value through your travel benefits loyalty program to attract new customers, keep current customers, and even engage employees.
In this blog, we’ll explore the six reasons why businesses should consider adding travel benefits to their loyalty program.
- Increase Customer Retention and Loyalty by Adding Travel Benefits
- Attract New Customers with Travel Benefits
- Increase the Perceived Value of a Loyalty Program
- Enhance Employee Loyalty with Travel Incentives and Perks
- Provide a Unique and Memorable Experience with Travel Benefits
- Increase Customer Engagement, Spending, and Revenue
For businesses, these benefits can significantly impact their bottom line. So, let’s dive in and see why travel benefits are necessary for any successful loyalty program.
1. Increase Customer Retention and Loyalty by Adding Travel Benefits
As the name implies, a travel benefits loyalty program is primarily designed to increase customer loyalty. A customer-centric travel rewards program enables organizations to provide points or miles for a free or discounted night in a hotel, flight, or even a rental car, which creates attractive opportunities for current customers to remain rewards members.
With continued interest in a travel benefits loyalty program, an organization is likelier to forge a positive emotional connection with its customers that encourages repeat business. This emotional connection helps establish trust, further enhancing customer retention. 62% of consumers will purchase exclusively from an organization they trust, and 85% will then recommend that organization and its loyalty program to a friend.
2. Attract New Customers with Travel Benefits
American consumers put a premium on accessing or utilizing rewards when traveling, making a travel benefits loyalty program a considerable revenue driver for organizations. When 50% of consumers find earning points or miles on trips essential, a travel loyalty program can be the determining factor for a new customer.
Travel rewards can create an additional avenue to entice potential customers interested in joining your association or membership group. Unlike other program perks, travel is an incentive that transcends age-associated differences. Every age group, from Baby Boomers to Millennials and Generation Z, has leveraged a travel benefits loyalty program to upgrade or save on a trip.
3. Increase the Perceived Value of a Loyalty Program
In 2023, offering a basic loyalty program and assuming customers will join is no longer enough. More than 90% of companies employ a customer loyalty program, and most American customers already belong to at least one. A robust travel benefits and loyalty program can help differentiate your program through a higher perceived value.
Value dominates all other considerations for consumers planning a trip beyond a desired destination or activity. Consumers tailor trips to the value they can receive. So, it is no surprise that earning points and miles towards free flights, hotel stays, and other complimentary perks make a travel benefits loyalty program more appealing.
4. Enhance Employee Loyalty with Travel Incentives and Perks
Beyond new and current customers, a travel benefits loyalty program can also appeal to your current employees. Travel incentives, like access to a hotel rewards program or a cruise loyalty program, serve as decisive engagement facilitators. Employees who feel valued and appreciated are up to four times more likely to be actively engaged at work.
Employees who feel recognized for their contributions through a travel benefits loyalty program are five times as likely to feel connected to their workplace culture and five times as likely to see a path to growth in the organization. Enhanced employee loyalty with monetary incentives like travel rewards is also 20% more effective when reducing turnover.
As a churn-reducer, travel rewards can help an organization save up to $16.1 million in turnover costs annually.
5. Provide a Unique and Memorable Experience with Travel Benefits
Travel loyalty programs provide customers with unique and memorable experiences they could not achieve otherwise. Nearly a quarter of American travelers even incorporate their travel loyalty programs into the inspiration phase of their travel planning process, consulting those sites to discover high-value trip ideas.
Access to one-of-a-kind experiences helps customers build a positive relationship with the organization that makes unique experiences possible. Hand-in-hand with enhanced customer loyalty and retention, the ability to redeem travel rewards like a hotel or frequent flyer program encourages customers to recommend the organization to friends and family or share it on social media.
6. Increase Customer Engagement, Spending, and Revenue
The more customers appreciate the perks of a travel benefits loyalty program, the more likely they are to increase spending with an organization. Travel rewards motivate consumers to increase purchases’ frequency and/or monetary value to earn more points or accumulate more miles. With increased consumer spending comes heightened business revenue.
Similarly, travel benefits can incentivize customers to engage more with a company by completing surveys, writing reviews, or sharing content on social media to earn miles or points. This enhanced engagement with a travel benefits loyalty program enables satisfied customers to become brand advocates, an easy conduit to gain new business.
Adding Travel Benefits to your Loyalty Program
If you’re ready to ramp up customer retention and revenue with a travel benefits loyalty program for your customers, discover how arrivia can help by requesting a demo.