A new report from arrivia shows that while consumers are looking to earn and redeem travel rewards through loyalty programs, many feel that the rewards do not provide enough value.
SCOTTDALE, AZ (JUNE 15, 2022) — American consumers are travel-ready, willing to redeem and willing to earn travel rewards, according to a new survey report published this week by the company arrived, the leading loyalty and travel booking technology platform serving consumer-facing businesses worldwide. Report, Where travel meets loyalty, shows that US consumers are looking for value when it comes to travel, and that travel rewards can provide that value. The report also shows a significant gap between what customers expect from their rewards and what loyalty program providers offer.
Between December 2021 and January 2022 arrived surveyed 2,150 US consumers and 204 industry executives about the role travel rewards play in post-pandemic travel resurgence. Nearly 50% of consumer respondents said the ability to earn points on travel is important. In comparison, 42% used points to reduce the cost of a trip, and a third expected to use loyalty points to cover the entire cost of a trip.
These results indicate that loyalty programs that allow members to earn and redeem travel rewards can use the recent surge in travel demand to increase their members’ spending, incentivize new subscribers, and better engage with existing members.
Travel rewards are key but often lacking
While travel reward programs can be effective drivers of loyalty, they often fall short of expectations. Both industry decision makers and consumers agree on why. Nearly a quarter of travelers said their rewards don’t feel valuable enough, while nearly a third are frustrated by the lack of redemption options, and about the same number say it’s hard or difficult to earn and redeem points.
Industry leaders admit that their loyalty programs are lacking, with 27% admitting they don’t offer enough variety when it comes to travel options, and 28% report having a hard time demonstrating the value of their rewards.
What’s even more worrying for loyalty administrators is the number of respondents who say none of their loyalty programs offer travel rewards (54%), compared to 65% of industry leaders who say such redemption options are available. This apparent discrepancy means that loyalty providers need to focus more on marketing their travel rewards and better communicate their value.
“Loyalty program providers who want to use their travel rewards program to grow their business need to give members what they want. As our survey results show, this means giving the right rewards and offers to the right people at the right time,” says Jeff Zotara, arrived Marketing director. “Expanding travel options by making it easier to redeem…