9 minute read
In the frame
Best of show
As Arabian Travel Market 2022 draws to a close, we provide a snapshot of highlights from this year’s event
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Talking loyalty
Travellers are acting on their pent-up wanderlust, but are points and miles enough to keep them loyal?
When travellers stowed away their suitcases during the pandemic, airlines, hotels and other travel businesses scrambled to extend loyalty statuses and offer incentives on upcoming trips to keep their customers happy. Now, with the world easing back into travel, members are cashing in their benefits.
In a survey conducted by GlobalData last year, it was found that travellers considered their main obstacles to be quarantine requirements, travel restrictions and the fear of contracting the virus, followed by financial concerns. This study reflected that economic constraints are going to be a key consideration when planning future trips.
Travel and hospitality providers have taken note, revamping their loyalty programmes to not only offer customers more value for their money but also appealing benefits to stay ahead of the curve. And to differentiate their loyalty programmes, many travel and hospitality companies are now leveraging customer data to deliver experiences that are memorable, valuable and customised to a member’s preferences.
Folker Heim, Chief Operating Officer, Global Hotel Alliance (GHA), said: “It is paramount to be customer-centric in today’s market. Customer centricity is a driver of growth and a competitive a collection of independent hospitality brands to offer loyalty benefits to their customers. Discussing new consumer trends in the current travel landscape, Heim said: “We see that today’s travellers, influenced by the circumstances of the last few years, are booking supersized holidays to bucketlist destinations, often at a much higher average daily rate than in 2019.
“Travellers are also opting for multiple days and staycations discovering close-to-home hotel experiences with a preference for sustainable travel. Booking patterns have changed, too, resulting in much shorter lead times, and customers are demanding more flexible and convenient ways to book and pay for travel. Techsavvy and health-conscious travellers, weary of pandemic-related red tape, will value convenience more than ever and hotels investing in technology to make their guests’ lives easier.”
But how are these changes impacting loyalty programmes? Heim explained: “We are taking a very forwardlooking approach to loyalty, not only meeting the needs of today’s consumers but also giving them a good reason to spend, supporting the organic rebound of travel and hospitality as a key part of the global economic revival in 2022.
differentiator. That is achieved by the smart use of technology and taking a loyalty data-driven approach.
“Gathering and using advanced behavioural insights allows us to recommend relevant offers to our members in our online touchpoints, target a specific segment or individual by sophisticated personalisation and engage with our members with relevant communications.”
At GHA, Heim is responsible for the group’s global technology platform, which supports the GHA Discovery loyalty programme, bringing together
It is clear that loyalty programmes will play a key role in the recovery of travel and tourism
“An feedback study conducted with members of GHA Discovery showed that travellers are asking to be rewarded instantly and fairly, not just for nights stayed but also for spend. With Discovery Dollars, GHA introduced the industry’s first digital rewards currency, enabling members to cash in on their loyalty from the very first stay and to earn and redeem on a wide range of offerings, including upgrades, stays and exclusive experiences.
“With the launch of GHA Discovery, we are putting millions of Discovery Dollars (D$1 = US$1) into our members’ wallets in 2022. In return, our members will be motivated to spend. Supported by the introduction of our new digital rewards currency, GHA anticipates that the programme will generate some US$1.5 billion in room revenue alone.”
With technology shaping every aspect of travel, the impact of new innovations can also be felt in the sphere of loyalty programmes. Heim explained: “Loyalty programmes are highly dependent on technology and require adaptation to the everchanging landscape. We have, therefore, used the time during the pandemic to invest in the backbone of GHA.
“Supported by our technology partner Oracle, who is also one of our shareholders, we focussed on enhancing functionality and processes in our systems and applications to improve guest recognition on property, enable seamless experiences on every online touchpoint and provide a direct booking channel with an appealing customer journey and attractive rates.
“Then, a very visible new trend is actually linked to the tremendous revival of an old technology: QR codes. Scanning QR codes is a native functionality in most smartphones nowadays and has enabled a lot of the touchless interactions we are seeing in hotels and restaurants. Patrons are directed to restaurant menus and other landing pages, which provide the opportunity to enrol new customers to GHA Discovery or prompt existing members to sign in and earn and redeem their Discovery Dollars.”
Heim agrees that the revival of loyalty programmes will play a key role in the recovery of travel and tourism. He said: “Beyond rewards and benefits, our loyalty programme, GHA Discovery, better leverages the emerging role of hotels and resorts as community and lifestyle hubs, tapping into consumer appetite for connecting to people and places and encouraging them to spend more, also without an overnight stay, giving a much-needed boost to the hospitality sector and local economies.
“Ultimately, the new GHA Discovery programme will help the revival of popular international destinations while building local travel communities.”
Beacons of the future
The giga-projects currently taking shape in the Kingdom of Saudi Arabia are being designed to create a new tourism landscape while transforming the country’s economy
The Red Sea destination
Saudi Arabia is in the midst of massive changes and gaining ground are some of the world’s most ambitious gigaprojects. From theme parks and metro lines to untouched islands, the country’s biggest projects taking shape are rooted in its past with a focus on its future. Key to attracting foreign investment, the projects reflect the reforms taking place as Saudi Arabia moves away from its oil-dominated economy.
NEOM
Planned for completion in 2025, NEOM was first announced as one of Crown Prince Mohammed bin Salman’s showcase projects in 2017. Set to become a city of the future, the US$500 billion project is key in Saudi Arabia’s post-oil diversification plan, expected to contribute at least US$100 billion to the country’s GDP by 2030.
Located in north-western Saudi Arabia, the smart city will span 26,500 square kilometres, which is 35 times the size of Singapore, and will feature 450 kilometres of coastline. A hub for innovation, NEOM will also become home to future technologies, such as biotech and future food.
NEOM recently announced a mountain tourism project, Trojena, that will join the city as a year-round tourist destination, with facilities such as a ski village, ultra-luxury resorts, retail stores, restaurants and sporting facilities.
THE RED SEA DESTINATION
Merging the goals of sustainability and tourism, The Red Sea Development Company was established in 2018 to transform 28,000 square kilometres of coastline to the kingdom’s west. The destination is an archipelago of over 90 untouched islands, home to mountains, volcanoes and a wealth of wildlife.
The first wave of visitors is set to arrive by the end of 2022, with several hotels gearing up for a soft opening. Upon completion in 2030, it will be home to 50 resorts, offering 8,000 hotel rooms and more than 1,000 residential properties spanning 22 islands and six inland sites. While contributing to the thriving economy is a key priority, the destination also aims to set a new standard in sustainable development.
AMAALA
Intended to complement and sit alongside NEOM and the Red Sea destination is Amaala on the northwestern coast of Saudi Arabia. Encapsulating three sites located within the Prince Mohammad Bin Salman Nature Reserve – Triple Bay, Coastal Development and The Island – the development will cover an area of more than 3,800 square kilometres. It is expected to have around 2,000 hotel keys, 800 residential villas, apartments and estates, plus 200 retail spaces.
ALULA
AlUla’s US$15 billion master plan, Journey Through Time, aims to transform the ancient Nabataean region into a destination of art, heritage, culture, tourism and nature. With goals to attract two million visitors to the region annually, new direct flights and an array of new hotel openings show that things are more than underway. The country hopes to transform the region into a living museum, utilising its rich natural and human history to attract the world’s curious travellers. A low-carbon tram line, connecting the region’s five districts, will cement its commitment to sustainability, following a similar route to the ancient Hijaz Railway traversed by pilgrims for centuries.
QIDDIYA
Set to become the kingdom’s entertainment, sports and arts capital on the outskirts of Riyadh, the Qiddiya project will span 334 square kilometres, offering a mix of attractions ranging
NEOM from a 20,000-seat cliff-top stadium to a Formula One-standard racetrack. The US$8 billion project has been underway since 2019 and phase one is due to open next year. There will be more than 300 recreational facilities and the area will be divided into five major themes: parks and attractions, sports and wellness, nature and environment, arts and culture, and motion and mobility.
ASEER DEVELOPMENT PROJECT
As part of the tourism strategy for Vision 2030, the redevelopment of the southwestern Aseer region hopes to attract more than 10 million visitors by 2030. The US$13 billion project will transform the mountainous area into a year-round destination featuring hotels, residential units as well as commercial and entertainment attractions.
DIRIYAH GATE PROJECT
Set to become the world’s largest culture and heritage city, the US$50 billion Diriyah Gate project will see the redevelopment of the birthplace of the kingdom. All construction of the luxury development will be in the traditional Najdi architectural style and it will include an array of museums, galleries and shops. The area is already home to the At-Turaif District, a UNESCO World Heritage Site, which was a 15th-century trading hub made up of mud-brick structures and became the seat of power for the House of Saud in the late 18th and early 19th centuries.
VISIT STAND ME4410, ME4440
Diriyah
