The holiday travel season is already here, and this year it’s set to be a litmus test for airlines, travel operators, and their travel loyalty programs. The big question on everyone’s mind is, how will the season’s trends unfold?
A recently conducted travel loyalty study by iSeatz offers fresh insights, providing a glimpse into this year’s travel landscape. The study involved over 2,000 consumers in the United States who belong to loyalty programs with travel-related rewards.
Loyalty programs are changing but they can still provide value for consumers… if they use them to their full advantage. This holiday season will be a test for how popular they remain for travelers looking to cut down on airline, hotel or car rental costs.
1. More Travelers for the Holidays This holiday season, we’ll likely see more packed suitcases and crowded airports. In 2022, only 40% of American adults surveyed traveled for the holidays. However, this year, 54% of consumers plan to travel during the holiday season. This uptick suggests increased confidence in the economy. Whether this translates into a booming travel season remains to be seen, but it’s undoubtedly a positive sign.
2. Price Remains a Decisive Factor Last year, affordability was a significant factor that kept people from traveling during the holidays. Of those who stayed put, 45% mentioned the high costs or insufficient points and travel rewards. While inflation appears to have stabilized and the economy is calmer, affordability remains a crucial consideration this season. Travelers are likely to hunt for value in their holiday travel plans.
3. Loyalty Programs as Cost-Savers Loyalty programs have the potential to offset travel costs and influence holiday travel decisions. According to the study, 42% of consumers would travel more during the holidays if they had more discounts via their loyalty programs. Another 32% would travel more if they had more points to help ease the trip’s financial burden. This presents a significant opportunity for loyalty programs to attract new members and engage existing ones by offering holiday-specific benefits and rewards.
4. Is It Enough? The findings highlight a potential gap in what loyalty programs offer. While consumers in the survey expressed a desire for their loyalty programs to assist with holiday travel costs, a concerning 45% reported that their loyalty programs aren’t offering any benefits for the holiday season. This presents an area of improvement for travel brands.
5. Targeting Younger Generations Brands in the retail, travel, and financial sectors are stepping up their game by offering holiday perks to younger generations. A significant 53% of Gen Zers and 54% of Millennials mentioned being offered lifestyle benefits connected to the holidays. This contrasts with 46% of all respondents. For loyalty programs, there’s a golden opportunity to engage and activate older generations, like the Silent Generation and Baby Boomers, who were less likely to have traveled during the holidays in 2022.
The Travel Outlook for 2024 In a world where prices seem to be on the rise across the board, consumers are turning to their loyalty programs to save money and provide the value they can’t find elsewhere. This trend is set to continue, with 2023/2024 becoming a strong season for travel brands and the loyalty programs supporting them. This is, of course, provided that they can offer the value consumers are searching for. And to be honest with many programs devaluing their offerings while raising the bar to qualify for elite status, the value of many loyalty programs are in flux.
