Loyalty Programs

US Travelers Are Heavy Users of Loyalty Programs - eMarketer

Excerpt from eMarketer

Loyalty programs are closely associated with the travel industry in the public's mind (see: frequent flier miles) - and for good reason. New data from Phocuswright and Acxiom found that four in five US travelers were members of some type of travel-related loyalty program.

Naturally, the point of such programs is to help drive revenues and add to the bottom line. eMarketer estimates that digital travel sales in the US will total $189.62 billion this year, with that figure growing to $219.69 billion by 2021.

The Phocuswright and Acxiom survey, conducted in March, found that business travelers were more committed to loyalty programs than leisure travelers across pretty much every segment of the travel market—for the obvious reason that they are likely to travel more frequently. For instance, 62% of business travelers had signed up for a hotel's loyalty plan, compared with just 54% of leisure travelers.

Similarly, the airline loyalty program sign-up rate was 60% for business travelers and 50% for leisure travelers.

But while travel loyalty programs are popular among travelers themselves, they don't have nearly the same level of adoption among consumers overall, at least among certain age groups. A survey of internet users in North America from CrowdTwist found that retail loyalty programs had the highest adoption rate among adults ages 18 to 37. Meanwhile, travel and hospitality programs were somewhere in the middle of the pack. 

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