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Strategy Briefing

The Evolution of Loyalty Programmes in the Travel Industry

29 pages, Jul 2014

US$1,325

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About This Report

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All travel industry loyalty programmes continue to evolve, but US legacy airlines are in the midst of a radical transformation to reward their most lucrative travellers. Hotels are also enhancing their elite benefits to lock down their loyalty. Going forward, innovation in mobile and personalisation will be how companies cement loyalty from their members.

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Overview

Why buy this report?

Gain competitive intelligence about market leaders. Track key industry trends, opportunities and threats. Inform your marketing, brand, strategy and market development, sales and supply functions.

Airline loyalty programmes in transformation

To better cater to their highest paying passengers, airlines have made moves to reward these lucrative travellers better, including switching to a spend-based model for “miles” accumulation and joining forces with hotel loyalty programmes.

Evolution in hotel loyalty programmes

Although the hotel industry’s recovery led to devaluations, hotel companies continued to evolve their programmes, such as IHG offering free Wi-Fi for all members starting in July 2014.

Co-branding remains key but face challenges

Co-branded credit cards remain lucrative for the industry thanks to high-margin sales of points or miles. However, co-branded credit cards face obstacles with interchange fee regulation in Europe and to a lesser extent, competition from general rewards cards.

Prepaid cards show potential

Although prepaid cards are not as lucrative as co-branded credit cards, airlines are launching these cards to appeal to those who travel abroad frequently or do not have access to credit.

Improving the travel experience

Loyalty programmes are expected to continue to improve by improving the travel experience for members, especially their most lucrative elites. Mobile and personalisation are the important areas where the next evolution will occur.

What this report includes

Top-level strategic analysis of how major consumer trends will influence global markets
Consumer insight
Impact across all relevant consumer markets
Unique graphics and case studies
Key market snapshots
Accompanying presentation to synthesise main findings

Why buy this report

Identify factors driving change now and in the future
Understand motivation
Forward-looking outlook
Briefings and presentation should provoke lively discussion at senior level
Take a step back from micro trends
Get up to date estimates and comment

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Introduction

Scope

Key findings

Market Background

Overview of loyalty programmes

Loyalty programme models

The US has the highest number of members

Airline Loyalty Programmes

Airlines in the US have the highest membership levels

A time of transformation for US airline loyalty programmes

Switching to a spend-based loyalty programme

Legacy carriers add a spending requirement for status

Airline and hotel loyalty programmes join forces

Devaluations common in 2014

Hotel Loyalty Programmes

Industry rebound causes loyalty programme devaluations

Hotel loyalty members generate significant revenues

Starwood sees results from 2012 improvements

IHG revamps loyalty programme, renamed IHG Rewards

IHG reports preliminary success for new IHG Rewards

Co-Branding with Cards

Co-branding is lucrative but regulations constrain the practice

General rewards cards pose increasing threat

Prepaid cards offer opportunities to airlines

Strong potential for prepaid cards

Future Outlook

Future trends to watch

Definitions of Report

Definitions

Why buy this report?

Want to find out more about this report?

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Megatrends

Strategy Briefing

The Evolution of Loyalty Programmes in the Travel Industry

New Report Guarantee

About This Report

New Report Guarantee

Overview

Why buy this report?

Airline loyalty programmes in transformation

Evolution in hotel loyalty programmes

Co-branding remains key but face challenges

Prepaid cards show potential

Improving the travel experience

What this report includes

Why buy this report

Want to find out more about this report?

Table of Contents

Introduction

Scope

Key findings

Market Background

Overview of loyalty programmes

Loyalty programme models

The US has the highest number of members

Airline Loyalty Programmes

Airlines in the US have the highest membership levels

A time of transformation for US airline loyalty programmes

Switching to a spend-based loyalty programme

Legacy carriers add a spending requirement for status

Airline and hotel loyalty programmes join forces

Devaluations common in 2014

Hotel Loyalty Programmes

Industry rebound causes loyalty programme devaluations

Hotel loyalty members generate significant revenues

Starwood sees results from 2012 improvements

IHG revamps loyalty programme, renamed IHG Rewards

IHG reports preliminary success for new IHG Rewards

Co-Branding with Cards

Co-branding is lucrative but regulations constrain the practice

General rewards cards pose increasing threat

Prepaid cards offer opportunities to airlines

Strong potential for prepaid cards

Future Outlook

Future trends to watch

Definitions of Report

Definitions

Why buy this report?

Want to find out more about this report?

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