Loyalty Schemes in Tourism - International - July 2010
This report reviews developments in travel and tourism loyalty schemes, including airline frequent-flyer programmes (FFPs), hotel frequent-guest programmes, as well as loyalty programmes in the rental car and cruise sectors.
A loyalty scheme can be evaluated according to three basic criteria:
- What does it take (for example in terms of points, Air Miles or hotel nights) to reach a tangible reward or to move into a higher tier in a given programme?
- How varied are the redemption possibilities? Most loyalty schemes include a number of ‘partners’ – in some cases more than 1,000 – which provide programme members with a variety of ways to ‘burn’ their points, ranging from charitable contributions to retail purchases.
- For how long are the points earned valid? In most programmes, loyalty points expire after a year or some other predefined time period passes without any activity on the account.
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