Covid-19 Reshapes Customer Loyalty Concept for Travel Loyalty Programs

Post witnessing a range of drawbacks amid the pandemic, firms offering travel loyalty programs have had to modify their offerings for luring more customers. The past few months have made survival extremely difficult for all such firms as sustaining previous customer counts was a serious challenge.

As per research by PhocusWire, most travellers have joined at least one of the travel loyalty programs being offered by big industry names since the beginning of the pandemic. After several airlines cancelled bookings without giving customer refunds, many travellers became increasingly sceptical about giving up their travel loyalty programs.

While some firms have started reducing annual fees on credit cards to maintain their market position, others have introduced bonuses and additional benefits. Analysis by travel market experts revealed that travellers will henceforth invest in travel loyalty programs that kept their money safe either by giving future credits or refunds. Some programs have reduced the tier requirements necessary for getting access to elite status in programs.

Travel Loyalty Programs are beneficial, especially for frequent travellers. Even though an annual fees has to be paid for availing them, they are best for business and leisure travellers in the long run. Besides offering the usual schemes, programs must now become more flexible with respect to changes and cancellations as the pandemic has increased the importance of these things.

Since travel loyalty programs are a major factor in shaping the behaviour of travellers, recent modifications will encourage travel brands to improve their digital image and attract more people. As travellers have gained consciousness about responsible and sustainable tourism, they do detailed research about features of all travel loyalty programs before settling on one.

Considering the importance of social media image these days, travel brands must work to improve their online presence, including social media and websites. Based on research, most loyalty members stick to the brands that offer clear information to their customers via online sources. Satisfied members of travel loyalty programs don’t just remain consistent, but also become brand advocates for the travel brands they like.

However, the pandemic has shifted the opinion of people encouraging them to rethink their investment in travel loyalty programs, thereby throwing the future of travel brands into deeper gloom.