Journey Loyalty Report Reveals Altering Shopper Sentiment Round Journey Priorities, Planning and Loyalty Applications

New report explores how shopper attitudes towards journey have advanced since 2021, alongside journey model and loyalty program targets amid continued will increase in journey

Findings from arrivia’s complete new 2024 Journey Loyalty Outlook report embrace a transparent intent by American customers to journey extra in 2024 and elevated deal with value-seeking round journey planning and shifting expectations relating to using journey loyalty program choices.

Along with adjustments in shopper sentiment round journey planning, the brand new report from arrivia, a journey know-how firm that gives journey loyalty, reserving and advertising options to consumer-facing firms, additionally analyzes how loyalty program targets have shifted since the same research of program professionals and American customers was carried out in 2021.

Primarily based on findings from a September 2023 survey of greater than 2,200 U.S. customers about their 2024 journey plans and the function of journey rewards and loyalty packages, mixed with a concurrent research of over 100 loyalty decision-makers about their program methods and priorities for the upcoming 12 months, the 2024 Journey Loyalty Outlook report compares variations between the 2021 and 2023 responses whereas highlighting present traits amongst manufacturers that supply journey rewards packages and the customers and members that use them.

The complete report builds upon The Pathway to Program Income, a preview of the survey findings designed to help loyalty program directors throughout 2024 planning. It comprises full outcomes and evaluation of worth to a variety of journey manufacturers, business members, suppliers, and loyalty professionals. Representatives from monetary providers establishments, airways, membership-based organizations, motels, resorts, cruise traces, and people searching for so as to add or enhance journey rewards tied to different loyalty packages can profit from report takeaways.

“Whereas 2024 is seeking to be one other banner 12 months for leisure journey amongst American customers, our report identifies each challenges and alternatives for manufacturers relating to assembly altering traveler wants,” says Jeff Zotara, arrivia Chief Advertising and marketing Officer. “These journey manufacturers and loyalty professionals that take note of what customers are asking for in right this moment’s financial surroundings – together with larger worth and extra choices – and modify loyalty technique to deal with these wants will profit from a definite benefit within the months to come back.”

The 2024 Traveler Perspective

Customers, together with those that belong to loyalty packages, stay desirous to journey, however worth for cash is their chief consideration, as inflation and excessive journey costs weigh on their decision-making processes.

• “Value/worth for cash” was ranked #1 by customers when requested about their prime consideration when journey planning, with 37% of customers saying that’s their greatest precedence.
• 72% of customers mentioned the rising price of journey is impacting their plans for this 12 months or subsequent – but solely 23% referred to as out utilizing their miles/loyalty factors to defray the price of the journey as a possible answer.
• When reserving a visit, loyalty members expressed frustration that costs are too excessive general (44%), whereas 23% responded that they’re by no means positive they’re getting the correct worth.

Each pricing and general worth proposition are driving forces when reserving journey in 2024. As we speak’s shopper is on the lookout for a wide range of methods to scale back journey prices, together with redeeming factors to decrease the general expense of their journey (46%), reserving discounted journey by way of their program’s reserving portal (31%), and utilizing their membership to safe reductions with journey suppliers (29%).

The Evolving Goalposts for Loyalty Applications

One of the crucial notable adjustments in loyalty program targets between the 2021 and 2023 surveys is the shift from member attraction and retention to profitability targets – together with encouraging present members to maneuver up a tier, growing whole spending by way of this system, and introducing new rewards or redemption choices.

• The dimensions of program membership has additionally elevated since 2021, significantly within the one to 9 million vary, from 10% of firms polled to 21%. Consequently, rewards packages with fewer than 10,000 members have sharply declined, dropping from 30% to 11% prior to now two years.
• A bigger proportion of 2023 respondents supply journey rewards (95% vs. 65%), and packages with direct journey reserving capabilities on their platforms have considerably elevated, hovering from 61% to 84%.
• Many of those firms (84%) additionally plan to supply new journey rewards or advantages quickly, up from 63%.
• In the meantime, challenges round introducing new redemption choices have additionally grown (from 9% to 14%), as have sustaining acceptable customer support ranges (21% to 26%).

Whereas general program membership is flourishing, particularly amongst bigger suppliers, survey outcomes illustrate that demonstrating the worth of rewards stays a battle throughout industries, with one in 5 loyalty program suppliers citing this as a big problem in each report years.

Connecting with As we speak’s Shopper – Alternatives to Drive Engagement and Buyer Lifetime Worth

Survey findings illustrate that manufacturers aiming to extend engagement and profitability should deal with worth. Which means bettering the number of rewards obtainable by way of their packages, making it simpler for members to redeem them, and highlighting their discounted charges.

• 43% of customers need reductions on on a regular basis purchases vs. 25% of companies who suppose that is what their members worth most.
• 19% of suppliers suppose customers worth standing perks, whereas the survey signifies the precise quantity is lower than half on the buyer facet.
• 20% of manufacturers say poor web site person expertise is what they suppose members discover most irritating about loyalty, whereas a small fraction (5%) of customers cite this as their important frustration. By comparability, 21% of customers are extra pissed off by the troublesome or advanced processes of incomes/redeeming miles.

Along with incorporating extra reward choices and lowering friction round reward redemption, methods outlined within the report for bridging these disconnects, and others recognized, embrace deeper reductions, providing extra versatile loyalty currencies, more practical communications round reductions, journey rewards and reserving capabilities, and catering to area of interest journey segments prime for enlargement alternative, together with the cruise market.

“Journey rewards have grow to be a core element of many loyalty program choices, largely because of their recognition and skill to drive income,” added Zotara. “Nevertheless, shopper demand is not sufficient to fulfill program targets given elevated competitors and choices obtainable; manufacturers should present larger worth in additional methods than earlier than, together with the flexibility to personalize the expertise with extra feature- and option-rich choices on extra versatile and responsive user-friendly platforms.”

Arrivia’s 2024 Journey Loyalty Outlook report identifies alternatives for manufacturers to spice up income and conversions whereas deepening member relationships by addressing the significance of the worth and utility of journey rewards – together with the correct collection of reward choices mixed with the correct degree of customer support.

Obtain the 2024 Journey Loyalty Outlook right here. (Registration Required)