Brand loyalty programs are one of the most powerful tools businesses have for increasing the lifetime value of customers. After all, your biggest marketing expense is your cost of customer acquisition. It is far more affordable to convince an existing customer to return. The pandemic brought this to the fore all the more so. Here are some statistics from a study published on ValuePenguin that show how essential loyalty programs are in the travel industry:
- 41% of US consumers have a rewards program related to travel – there are plenty of travelers already locked in, including 78% of people who travel for business and 65% of vacationers.
- Only 34% of people cash in their travel rewards – most people are just hoarding them. Eventually, they will use them. However, in the short term, these rewards programs cost your hotel next to nothing.
- The vast majority of members are happy they joined (82%) – of course, more than half of the people surveyed wished they were getting more for their membership. The biggest complaint is that more rewards should be provided for each dollar spent.
- Gen Z is the most likely to join a rewards program percentage-wise – this means you can hook your future customers on your brand now, even though Gen Z seems to be slow to adopt travel loyalty programs in particular.
Get Ready to Welcome Your Loyal Customers
A1 American can help your hotel to be ready to welcome back loyal guests with the hospitality supplies you need. We also offer essential care products to meet staff and guest needs during the ongoing pandemic. Call 833.205.2200 to get in touch with a friendly A1 American representative and learn more.