The Rise of Travel Loyalty Programs
The 2025 Trend Report by Agoda highlights the significant growth of travel loyalty programs in the airline industry. This growth is attributed to the increasing popularity of loyalty programs among travelers. According to the report, the top five airline loyalty programs alone saw a 7.75% average growth in valuation from 2020 to 2023.
The report also noted that 75% of customers are more likely to book a hotel stay if they can use their loyalty points to redeem them for free nights or upgrades.
The Impact of COVID-19 on Customer Loyalty Programs
The COVID-19 pandemic has had a profound impact on customer loyalty programs worldwide. As the world grappled with the pandemic, many customers were forced to cancel or postpone their travel plans, leading to a significant decline in bookings and revenue for hotels and travel companies. However, as the pandemic began to subside, customers began to return to travel, and loyalty programs were faced with a new challenge: how to retain their customers and encourage them to continue booking with them.
The Decline of Customer Satisfaction
According to a report by Agoda solutions, customer satisfaction levels for many customer loyalty programs have declined significantly since the pandemic. The report noted that:
The Power of Loyalty Points
Loyalty points have long been a key component of customer loyalty programs, offering customers a sense of reward and recognition for their repeat business.
Rewarding Loyalty with Personalized Travel Experiences.
The Benefits of Travel-based Loyalty Programs
Travel-based loyalty programs offer a unique set of benefits that cater to the needs of higher spending customers. These programs are designed to reward customers for their loyalty and encourage repeat business. By leveraging advanced technology, these programs can proactively recommend options to customers based on their preferences, making the booking process more personalized and efficient.
Key Features of Travel-based Loyalty Programs
“This is a significant increase, and it’s a great example of how loyalty programs can drive ancillary revenue.”
The Rise of Ancillary Revenue Streams
The travel industry has long recognized the potential for loyalty programs to drive ancillary revenue streams. However, the concept of ancillary revenue has evolved significantly over the years. In the past, ancillary revenue referred to the additional income generated by selling services such as baggage handling, seat selection, and travel insurance. While these services are still important, the industry has expanded its definition to include a broader range of revenue-generating opportunities.
Key Benefits of Ancillary Revenue Streams
Rocket Travel by Agoda: A Comprehensive Guide to Loyalty Programs
Understanding the Importance of Loyalty Programs
Loyalty programs are a crucial aspect of any business, particularly in the travel industry. They help build customer loyalty, increase repeat business, and ultimately drive revenue growth. In this article, we will delve into the world of loyalty programs and explore how Rocket Travel by Agoda can help partners create effective loyalty programs.
Key Benefits of Loyalty Programs
Crafting a Loyalty Program with Rocket Travel by Agoda
Rocket Travel by Agoda offers a comprehensive guide to crafting loyalty programs, leveraging its extensive industry expertise. The guide provides a step-by-step approach to creating a loyalty program that meets the unique needs of a business.
