Loyalty at a Digital Crossroads: What Travel Brands Need to Prepare for

Consumer fatigue

The average consumer is struggling with loyalty fatigue, facing the challenge of pervasive loyalty programmes that are overly complicated to use. Bar enthusiasts that thrive on the challenge of points collection, rewards and redemption, the majority see loyalty as a major pain point that they tolerate simply for the deals.

Redefining loyalty

Loyalty is in a process of flux due to new technology and changing consumer values. It is increasingly vital to view loyalty as part of the overall customer experience framework building a long-lasting customer relationship.

Broken business model

The current business model is distinctly flawed and clunky, with each loyalty scheme tending to exist in silo or within the confines of a coalition. It is critical for brands to view loyalty as part of the process of providing a seamless, enhanced customer experience that is delivered in real time and is context specific.

Dynamically packaged

A move towards dynamic loyalty will be brought about by new technology such as blockchain, where data will be portable, allowing unique interactions with any brand. Consumers will be able to receive benefits across different loyalty schemes and verticals, breaking down traditional barriers to rewards.

Future to the power of one

Technology such as voice, augmented reality and emotion recognition software will further speed up the shift towards personalised and targeted brand loyalty interactions, using deep learning to monitor and measure consumers’ reactions to adapt rewards, offers, experiences and discounts based on user response.

Fintech fest

Disruption will happen outside the travel industry, and this is why it is important for travel brands to work closely with consumer finance companies, and keep an eye on fintech funding and disruptive technology developments.