Airlines

Could Loyalty Program Members Drive Post-Pandemic Recovery within the Travel Industry?

Wise Marketer Press Release
Image by Niek Verlaan from Pixabay

A recent survey* compiled by Points has uncovered that many loyalty members place a high value on points/miles and are taking advantage of price-led promotions to purchase them in bulk to realize future travel plans even if they do not have an immediate departure date in mind. 

The post-purchase survey of over 14,000 loyalty members which was carried out between May 2020 and January 2021 asked consumers why they were buying points or miles. 76% of respondents said they were putting them towards a future travel-related redemption, with 54% of those surveyed indicating that they planned to travel within the next six months, or as soon as travel advisories were lifted. 80% of members surveyed also stated that they would consider purchasing again within three months

Close to half the respondents said getting a good deal on points/miles was the main reason for their purchase that day. Similarly over twice as many respondents cited getting a good deal on loyalty currency as being more important to them than having the ability to travel right now as a factor that would dictate their next purchase of points/miles.

Loyalty members keen on purchasing points and miles without a defined travel goal in mind could be a key customer segment for travel brands to engage with rather investing ad dollars in deeply discounted offers to recruit new prospects.

A recent white paper by the company consolidated these findings along with giving insights into the most successful promotional tactics delivered across the company’s broad partner base within the travel industry since the outbreak of the pandemic:

  • Personalized campaigns were very profitable: in one instance, a promotion to a high-value customer segment yielded a 23% higher average transaction value and generated more revenue than any other pre-pandemic marketing campaign to that database.  
  • Offers communicated via digital and social media channels (consumption of which has soared across all age groups during the pandemic) were typically on par or exceeded email campaigns – in one example a digital campaign outperformed email by 109%.
  • Members targeted via promotions typically had a 124% higher lifetime value, and 66% higher repeat purchase rate within the following six months than those who made their first loyalty currency purchase without an offer.

Along with bringing in much-needed revenue, driving loyalty currency promotional campaigns now could also help loyalty programs communicate effectively with their members and maintain an engaged and loyal customer base in anticipation of a return to travel.

*The post-purchase survey was conducted between May 05, 2020 and January 29, 2021. Answers were received from 14,400 respondents who had purchased either points or miles with one of Points airline or hotel partners between the same time period. 90% of respondents were located in North America.

About Points International

Points, (TSX: PTS) (NASDAQ: PCOM) is a trusted partner to the world’s leading loyalty programs, leveraging its unique Loyalty Commerce Platform to build, power, and grow a network of ways members can get and use their favourite loyalty currency. Our platform combines insights, technology, and resources to make the movement of loyalty currency simpler and more intelligent for nearly 60 reward programs worldwide. Founded in 2000, Points is headquartered in Toronto with teams operating around the globe. For more information, visit Points.com.

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