Survey: Travel loyalty programme members want broader redemption choices

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By: RickFerguson |

Posted on March 31, 2016

A new Collinson Latitude report on the value of redemption reveals an important truth about the evolution of travel loyalty programmes: With many programmes now moving to a revenue-based earning model, it has become ever more important to offer a wide range of redemption options outside of core flight and hotel redemptions. With positive redemption experiences demonstrably leading to greater loyalty, travel marketers should help their members redeem for rewards that improve the travel experience.

Collinson Lattitude surveyed 2,250 travel loyalty programme members in Asia, Europe, the Middle East, and the U.S. Here are the key survey findings:

  • Of those surveyed who had previously redeemed with a travel loyalty programme, 59% would buy the brand's flights and/or hotel stays "whenever possible" following a positive redemption experience

  • 63% of airline loyalty programme redeemers bought flights after a redemption
  • 66% of hotel loyalty programme redeemers bought hotel stays after a redemption
  • 53% of airline loyalty members have redeemed for non-core rewards
  • 32% of hotel loyalty members have redeemed on non-core rewards
  • 42% of respondants feel that loyalty programmes without non-core rewards are "old fashioned"
  • 61% of travel loyalty programme members look for programmes with more choice of rewards
  • 71% of travel loyalty programme members agree that the value of a programme decreases with a limit range of redemption options
  • Following a non-core redemption, 57% of airline loyalty programme members went online to book a flight
  • Non-core redeemers are also slightly more likely to continue to earn points with the same brand (77% to 71% of core inventory redeemers)

The results reinforce what savvy loyalty marketers have known for years: more reward choices lead to more redemptions, and more redemptions leads to greater loyalty. That's a virtuous circle that every marketer should be eager to embrace.

You can download the Collinson Latitude report here.

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