5 minute read
Travel
Rewards in a new era of travel
COVID-19 has had a huge impact on travel worldwide. PUSELETSO MOMPEI looks at rewards programmes in the industry
Air miles have long been a favourite reward for airlines to offer to customers as an incentive and to drive loyalty. However, with S&P Global estimating a massive 60 to 70 per cent drop in global air passenger traffi c in 2020 compared with 2019, what is happening with rewards in the aviation space?
John Friel, chief integration offi cer at Travelstart, says that with South African Airways and Comair – which operates the British Airways and the kulula.com brands in South Africa – being in business rescue for most of this year, the key players currently in the market do not have frequent fl yer schemes, therefore there are no programmes to refer to domestically at this time.
Friel explains that while the majority of airlines have protected both their members’ mileage balance and membership tier status, they fully recognise that in the current environment frequent travel has been impacted by the COVID-19 pandemic across all of their markets.
Airlines own their respective loyalty programmes, says Friel, and so are free to add additional benefi ts as they see fi t to stimulate demand and offer additional rewards to enhance a loyalty programme. That being said, people’s reasons to travel have changed at this time, so they are not necessarily being tempted by such value offerings. “I applaud all major airlines,” says Friel. “They are all doing what is needed to protect their frequent fl yers in what can only be described as very diffi cult times for the entire airline industry globally.”
Pre-festive season revival
Travel loyalty programmes are starting to open up again. At the end of September, Vitality announced that its travel platform would reopen for hotel and car hire bookings. The programme indicated that when domestic fl ight bookings open, Vitality members will be rewarded with upfront discounts of up to 75 per cent, as well as 72 hours’ early access for fl ight bookings.
REWARDS FOR NOT FLYING
In a seemingly counterintuitive move, Thailand’s national carrier, Thai Airways, launched a campaign during the pandemic handing out up to 3 million free miles to its members. The caveat was that members had to stay home to cash in on them.
The campaign, created by Wunderman Thompson, wants to encourage the airline members to stay at home during the coronavirus pandemic. At the same time, the airline hopes they will take the downtime to plan for their travel beyond COVID-19.
Source: Wunderman Thompson
Post-lockdown trends emerging
In terms of shifting consumer behaviour, a key trend is that people are buying tickets very close to departure. Friel says that currently 25 per cent of all Travelstart bookings are being made within 24 hours before departure. A further 17 per cent of travellers book for travel within three to seven days of that booking, and 13 per cent book between eight and 14 days before departure. A total of 55 per cent of all bookings are thus currently being booked for travel within two weeks. “We expect this trend to continue, meaning a lot of late festive season bookings happening.”
FAST FACT Hilton became the fi rst of the major hotel loyalty programmes to announce elite status extensions for all elite members. Expiring points have been paused for all members through December 31, 2021.
Source: hilton.com
REWARD ME PLEASE
“Airline loyalty schemes are meaningless to infrequent travellers because they don’t accrue enough miles to get higher status,” says Jon Knight of BLOCKv, which creates digital objects on blockchains. “Most people who don’t travel often book according to cost or schedule, which is a missed opportunity for airlines.
“Rather than signing me up for a membership scheme that doesn’t really benefi t me, why not give me something small? Picture a puzzle piece as a digital object. Every time I fl y, I get one, and when I have four, you give me once-off lounge access. To the airline, it’s inconsequential, but it’s surprising and delightful to me. Micro-rewards can incentivise people to travel.”
BOOK SMART
Booking apps have features that you can use to ensure you always book during the best time at the best available rate. “Set notifi cations with your desired price for fl ights or accommodation and be more fl exible with your travel dates,” advises Zee Shumane of African Odyzzee. “Research when off-peak seasons are for the places you want to visit. During off-peak season, fl ights, accommodations and activities are always cheaper.” with a possible upgrade from economy
TIPS TO GET THE BEST TRAVEL DEALS
Due to COVID-19, what worked in previous years no longer works and we will have to fi nd new ways to navigate this new way of seeing the world, says Zee Shumane, the founder of African Odyzzee, a platform that showcases different travel destinations to aspiring travel enthusiasts.
Some tried-and-trusted options are no longer available. “With large organisations such as STA Travel, which allowed for monthly payment plans for travel, closing their doors this year, travellers will have to be savvier and budget smarter,” Shumane explains.
All the major banks have some form of loyalty programme that rewards users based on their spending patterns with air miles and hotel discounts. The one to fl y abroad at a cheaper rate or to business class. The more you use your card for other purchases, the more points you earn. Credit cards have higher redeemable points than debit cards, plus travel-specifi c benefi ts.
Zee Shumane
benefi t of air miles is that they can allow
KEEP IT LOCAL
Zee Shumane of African Odyzzee says that until there is a COVID-19 vaccine, most people will be travelling locally. Since the largest expense when travelling locally is accommodation, she says that, “When travelling within South Africa, it’s important to bear in mind that the majority of prices listed on apps and hotel websites don’t necessarily refl ect the price for locals. By directly contacting the accommodation establishments, you can reduce the price by 10 to 40 per cent, especially for high-range lodges.”
According to a study by Airbnb, as uncertainty continues, local travel will continue to be very popular in 2021, and this is demonstrated by 62 per cent of the people surveyed who expressed that they want to take trips close to their homes.
