Talking loyalty

Travellers are acting on their pent-up wanderlust, but are points and miles enough to keep them loyal for the long term?

Folker Heim

When travellers stowed away their suitcases in the wake of the COVID-19 pandemic, airlines, hotels and other travel businesses scrambled to extend loyalty statuses and offer additional incentives on upcoming trips to keep their customers happy. Now, with the world easing back into travel again, members have continued to cash 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 for many when planning their 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 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 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 bucket-list 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. Tech-savvy 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 forward-looking 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.

“An extensive 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, in a clear and straightforward way.

“With Discovery Dollars, GHA introduced the first digital rewards currency in the industry, enabling members to cash in on their loyalty

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REWARDED INSTANTLY AND

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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 globally.”

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 in the postCOVID-19 era. 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.”