The Grand Wanderluster A new perspective for the modern day travel reward programme
A COLLINSON GROUP COMPANY
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Executive Summary Today’s traveller has come a long way. They go further, faster, more often and now control practically every element of their trip. They expect more from brands on their own terms and, thanks to the advancements of technology, they are increasingly informed about and influenced by what they will receive in return for their loyalty. The impact on the travel industry is clear: brands have to reinvent how they engage with customers or risk losing them in a highly competitive and primarily online market. In order to do keep their customers, loyalty marketers need to better understand how the evolution of the travel industry has impacted the needs and wants of today’s traveller. This report uses detailed insights from a global survey of 4,000 travellers to examine: How the travel and loyalty landscape has changed What the modern traveller looks like based on behaviours and interests
The actions that travel companies need to take to ensure they attract and retain the loyalty of today’s traveller The results offer loyalty programme managers a radical new approach. One that will encourage redemption and increase engagement to drive ROI in an environment when competition and choice are available at the click of a button. Central to this approach are the The Grand Wanderlusters. Six traveller personas – borne out of the research – that define the modern traveller; their values and beliefs, communication preferences and more crucially, how travel companies can engage with them to encourage brand loyalty through reward programmes. The Grand Wanderluster report provides invaluable insight into the desires of the modern-day traveller. It sets out a blueprint for travel reward programme managers to understand how they must respond to an ever-changing environment and evolve continuously. If they don’t, they risk losing out to competitors on loyalty, ROI and the value of long-term customers.
How satisfied travellers are with their existing reward programmes 3
Then and now: the transformation of travel Travel is, by its very nature, always on-the-move. Over the past few hundred years, it has altered radically and the rate of change has accelerated in recent years. There’s been a shift away from the standard planned and perhaps predictable trip to flexible and spontaneous getaways. To truly appreciate this change, we must first take a step back in time: back to The Grand Tour. A voyage which typifies the traveller of yesterday: defined, specific and elitist. The Grand Tour was a traditional trip through Europe, taken by young aristocratic Europeans between the years 1660 and 1840 who were happy to follow a specific and distinct travel routine.
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The story of global travel Over the past 300 years, global travel has evolved from maiden voyages, to the launch of the traditional frequent flyer reward programme, to click-of-a-button weekend getaways. Below, we take a trip through the travel industry’s history to understand how the prescriptive approach has evolved in the face of technological and cultural changes…
[1660-1840]
The Grand Tour ignites curiosity Event: Aristocrats head out on voyages of discovery across Europe
16001800
Impact: The trend of predictable and planned vacations begins
18011900
[1840]
Thomas Cook kick-starts the package holiday Event: Thomas Cook organises a trip for 540 people, earning commission on rail tickets Impact: Travel agents cash in on planned holidays for consumers
Did you know? In 1845, Thomas Cook arranged travel for 165,000 people without the aid of any technology. That’s even before the invention of the ball point pen and the telephone.
[1844]
All aboard P&O Event: P&O ferries launch passenger cruises Impact: International travel becomes more accessible to a wider audience
[1850]
Holiday in the snow Event: The Alps open to tourists Impact: Skiing holidays and other activity-based trips are born 5
19011950 [1914]
First ever commercial flight Event: Tony Jannus pilots the first commercial airline flight in the US with a paying passenger Impact: Travellers can now get further, quicker, and the choice of destinations expands
[1950]
The post-war holiday boom Event: World War II is over and travel feels safe again Impact: Demand rockets, with some one million Britons travelling abroad each year
19511980
[1960]
More than just a flight Event: Collinson Group launches the International Airline Passengers Association (IAPA) Impact: Offering value add services – insurance, lost baggage service, hotel and car rental discount programmes – becomes the new norm
[1979-81]
The first frequent-flyer programmes (FFP) Event: Texas International Airlines and American Airlines offer mileage-tracking to give ‘rewards’ to passengers Impact: Travellers start to get greater value the more they travel
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Did you know? In the UK, city breaks have now overtaken beach holidays as the most popular type of trip.
[1989]
The World gets smaller Tourism turns urban
Event: The Qantas Boeing 747-438 flys non-stop from London to Sydney
Event: Investment in the culture of European cities inspires increased urban tourism
Impact: Travel providers start offering trips to every corner of the globe
[1980-90]
Impact: The city break becomes hugely popular
19811990 [1990]
Package holidays become (very) popular Event: Britons take 27 million holidays and 56% are package deals Impact: Holidays become easy to access and even easier to plan
Event: Collinson Group launches the Priority Pass for VIP airport lounge – the first independent airport VIP lounge programme in the world. Impact: Premium becomes accessible to more people
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The era of the VIP
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[1992]
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[1999]
Consumers take control Event: Columbus Direct is the first to sell travel insurance entirely online, including policy delivery Impact: Demand for online accessibility grows
[2000]
Consumers gain a voice Event: Travel review site Trip Advisor launches Impact: Travellers no longer rely on travel agent guidance, instead trusting their peers' rating
20012010
Destination: the world Review: the world is a great place to visit Rating:
[2008]
Airbnb launches
[2001]
Low-cost flights take off Event: easyJet and Ryanair are Europe’s first low-cost airlines Impact: A huge surge in the number of cheap, last-minute airfares – travel becomes spontaneous and affordable to many
[2007]
Online overtakes offline Event: The majority of trips were purchased online for the first time
Event: The US company launches a completely new business in peer-to-peer hospitality Impact: Hotels across the globe are shaken by a revolutionary new business model
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Impact: Travel booking moves from the high street to the web
[2010]
The rise of the DIY holiday Event: More than half (54%) of UAE residents book their own trips online Impact: The consumer has more choice of hotels and airlines – differentiation is key
[2012]
China relaxes travel restrictions Event: Travel agents are allowed to use foreign global distribution systems to issue international flights
20112014
Impact: Chinese tourism surges, with a vast increase in diversity and value
[2014]
Web is the go-to booking tool Event: Online becomes the norm, with 75% of US travellers now booking trips on the web Impact: Smartphones, tablets and laptops are now the first stop for travel booking
[2014]
APAC is mobile Event: Smartphone usage booms Impact: 38% of travellers in the APAC region book hotels via a mobile device
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The Grand Wanderluster…
2015
| The • Grand • Wan•der•lust•er | Noun [2014/5] An individual consumed by his or her desire to travel the world, who is defined not by their age or gender but by their behaviour, characteristics and interests. A Grand Wanderluster demands more from travel companies than ever before and expects them to acknowledge both their diverse interests and reward them for their business and loyalty accordingly.
#Wanderlust was used on average 8,000 times per month in 2014 #Wanderlust was used 6,000 times in 2013 and 92,000 times in 2014 68% of the authors were female Top interests related to #Wanderlust included Books, Food & Drink, Music and Photography
*Twitter data provided by Brandwatch
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Getting to know the Grand Wanderlusters The rise of the Grand Wanderluster is testament to the way the travel industry has transformed. The current accessibility and mass availability of travel means that traditional demographicbased approaches to audience segmentation are a thing of the past. Grouping travellers into audience clusters based on traditional characteristics such as age, income, gender, is a sure fire way to alienate today’s customer.
For the Wanderluster generation it’s no longer about age and income – it’s now a question of attitudes, lifestyle, behaviours and expectations. Travel brands must take this approach for their core products and services and their reward programme. We asked 4,000 people across the globe a range of questions about their lifestyle attitudes, behaviours, interests and routine habits so we could get a better understanding of how the Grand Wanderlusters have impacted the travel industry and in particular, the travel reward programme.
We analysed the data and found six different Grand Wanderlusters; each defined by their own diverse needs and expectations of travel brands. The traditional frequent traveller persona has changed beyond recognition – in fact, there is no one set of characteristics to define them. Our findings show that consumers expect travel companies to understand their needs and above all else, to reward them for their loyalty.
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Meet the Grand Wanderlusters
Most likely to fly and stay in hotels multiple times a year, the Aspirationals are the reinvented frequent travellers – making them the core audience for airlines and hotels. Always on the move, 48% admit they ‘couldn’t live without their mobile.’ They are highly ambitious in their careers and have the pay cheques to show for it. They are most likely to travel for a business trip, though the majority are searching for the perfect work-life balance.
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THE ASPIRATIONALS Who are they? The Aspirationals are competitive, extroverted individuals who have an ‘all or nothing’ mentality. As savvy consumers who don’t take things at face value, they rate peer reviews of travel brands above all else. 12
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They spend their spare time listening to music, dining out and sharing these experiences with the people closest to them. That’s why the one thing Aspirationals want most from a reward programme is the ability to add and share their membership benefits with their nearest and dearest.
What do they think about reward programmes? As active members, the Aspirationals are generally satisfied with their travel programmes. But while they may redeem more regularly than others, they are always on the lookout for programmes that offer them more. They want rewards from the brand’s own inventory, but expect some variation too.
When they sign up to a reward programme they are determined to get the best possible return on their investment: they want a relationship with travel brands – on their own terms. They don’t want to be bombarded with communications that have nothing to do with their preferences and want a redemption experience that is fast and easy.
technology channels, for example, mobile. Remember diversity is important to them too, so offering them a variety of relevant rewards will be important to earning their loyalty. They are consumers who want to feel like they are valued by brands – so make sure that they don’t have to wait too long before they can redeem their points.
Why are they important to you? As the reinvented frequent flier, Aspirationals are a crucial portion of your customer base as they offer both short and long term potential. They travel multiple times a year, and – more importantly – they actively want to engage with your programme. They like to earn points and see little value in vouchers as a reward. Aspirationals also place importance on receiving rewards from a brand’s own inventory and like to book direct, meaning there are multiple ways of engaging with them whilst also creating advocates for your brand.
58%
Points matter to them – they are the group most likely to want to earn them (58%)
97%
Reward programmes are a deal-clincher – 97% are influenced by them
94%
They redeem online 94% redeem on PC, tablet and mobile
How do you reach them? To attract the Aspirationals, you need to adopt a relevant and tailored approach to communication. Of all the Wanderlusters, Aspirationals were the most likely to say they are contacted too frequently by travel companies (18%) and you should communicate with Aspirationals through up-to-date
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Balancers are people who like to make the connection between effort and reward. They are quite easily pleased as long as they feel they are being properly appreciated. As relatively extroverted individuals, their interests are broad and they like to spend their spare time split between social and individual activities. While the majority of their travel is for family vacations, they do also travel for business.
What do they think about reward programmes?
THE BALANCERS Who are they? A continual work-life juggler, the Balancer likes to get the most for their money and effort. For Balancers, work-life balance is a must. They are ambitious and their careers are important to them, but they rely on a structured routine to ensure they spend time with their partner.
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Balancers like reward programmes and don’t have particularly negative associations with them. But, because they like quid pro quo, they are likely to spend more if they receive more relevant offers. They take a considered approach to what they do and spend time assessing their options before making decisions. They rely heavily on customer reviews/recommendations when making a travel purchase decision. Most Balancers told us they don’t hear very often from their reward programmes which means they are less likely to make an effort to participate.
Why are they important to you? Balancers are important because they want to be loyal. They are prepared to invest in a relationship if they think their effort is going to be rewarded. That means once they are engaged with your programme, they are likely to stay – as long as you keep to your side of the bargain. The long term potential of Balancers is high, so while the return on investment might not be immediate, over time they are likely to become very profitable customers.
66%
Reward programmes matter – 66% of Balancers are influenced by them
44%
They like the programmes they participate in – 44% think they are great
85%
They like choice – 85% thought current travel programmes could be improved, at least to some extent, by a greater choice of rewards
How do you reach them? With 57% preferring to redeem online, making sure you give this option is crucial. Their desire for choice means your programme needs to go beyond just travel rewards; offering a range of rewards that fit a variety of needs/lifestyles. Most importantly, Balancers want to feel appreciated for their effort: regular, relevant communications will encourage active engagement from Balancers. Make Balancers feel their efforts will be rewarded and they’ll quickly become more active participators.
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Whilst extroverts at heart, their commitment to family means that their routine is somewhat predictable. Relationships outside of work are important to them in general, as they do also value the bond with their friends. Regular holidays are a fantastic way for Nesters to get the whole family together, relax and create some special memories. They are often loyal to certain destinations, airlines and hotels.
THE NESTERS Who are they? Nesters always put their family first, even at the expense of their own time. They will push themselves to be a success in their career so they can provide a comfortable life for their family.
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When Nesters are not on family holidays, you’ll find them on business trips abroad – which can mean additional flights and hotel stays. They hate being away from the family but, because they are tech-savvy with smartphones and laptops, they always keep in touch with loved ones no matter where they are in the world.
What do they think about reward programmes? Nesters travel frequently and often have the family at heart, so it’s quite apparent what type of rewards they’d be interested in. Whilst not having the time they used to for socialising with
friends, maybe a one off group getaway or trip is a motivator to putting sometime aside for catching up. Nesters are definitely open to more conversations with your brand and are very comfortable redeeming online across all devices. As Nesters are already quite happy with reward programmes and they fly and stay in hotels more than average, they are definitely a customer group worth investing more time in.
that to reach the Nesters, you should enhance the regular family holiday with redemption opportunities that offer a little luxury. As well as family-focused rewards, mobile access is important to the Nesters.
74%
They are digital – 74% redeem rewards through pc/laptop or mobile
47%
They want to hear from you more – 47% don’t get regular communication
53%
Overall they are quite satisfied – 53% happy with reward programmes
Why are they important to you? Once Nesters are engaged, they tend not to stray. This means that once you understand their routines and motivations for earning and redeeming points, you can easily tailor your programme to these predictable behaviours. As Nesters are cash rich, time poor and potential high spenders, a points per pound spent model could be very appealing.
How do you reach them? Family may be everything, but Nesters are also regular travellers, so they appreciate small perks to make time away from the family easier. They feel guilty spending so much time away, so are attracted to longer-term rewards that they can share and enjoy with the family. This means
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They appreciate instant gratification for effort and want to see results quickly. As a result, they can often be found seeking the next travel thrill, surfing the internet for inspiration. They also like to be pampered. With their need for immediacy, they are more likely to use their smartphone to interact with brands – no fuss or browsing, they just want to get it done now. That’s why they like the instant comparisons available through aggregator sites. DUTY FREE
THE ON-DEMANDERS Who are they? The On-Demanders are career-orientated individuals who don’t particularly enjoy routine and, as introverts, are more likely to focus on their own individual needs than run with the crowd.
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What do they think about reward programmes? On-Demanders want to feel inspired. They value choice, and don’t like pre-determined or predictable rewards, so free gifts or limited choice won’t appeal. While they are least likely to be inspired to spend more through offers, they remain highly engaged with programmes that offer choice and the flexibility for them to personalise their experience. Image and brand reputation is more important to the On-Demanders than the rewards on offer when choosing a travel provider.
Why are they important to you? On-Demanders are important because they travel relatively frequently and are likely to be vocal if they are not happy. The short to medium-term potential they present is attractive and the long term potential is high. Generating a good opinion of your brand with On-Demanders could reap significant benefits.
How do you reach them? Because On-Demanders like aggregator sites – more than 38% prefer this travel booking method – establishing direct relationships with them can be a challenge. Your programme needs to instantly inspire them. Offering contemporary rewards, such as digital downloads or luxury items from brands with great reputations will appeal to their on-demand nature and image-centric view of the world.
36%
They are image conscious – 36% feel brand name is a key selection factor
24%
They recognise value – 24% said it costs too much to get rewards
85%
They want to be in control – 85% said travel programmes would be improved if they could choose their own reward categories
In order to engage On-Demanders long term, you need to make the redemption process as easy as possible and ensure content is accessible cross-device – whether using a tablet or smartphone. With a desire to shape their own destiny in terms of the rewards available, there is a great opportunity for two-way dialogue and to appeal to their need for flexibility, personalisation and to feel special.
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Individualists tend to be uninterested in the latest technologies, use PCs only when needed and you won’t find them with an e-reader or the latest smartphone. Quite happy in their own world, they don’t travel often but do indulge in weekends away.
What do they think? Travel brands rarely target them, and as a result, Individualists are unlikely to see much value in reward programmes. Along with online customer reviews they are influenced by rewards and if offered more choice and availability, they would be much more willing to engage.
THE INDIVIDUALISTS Who are they? Individualists tend to keep themselves to themselves, breaking-up their routine with a mix of music, books and TV. They see themselves as introverted and noncompetitive, likely to be single or divorced and ambition hasn’t been a leading factor in their lives.
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Quite sceptical and dissatisfied, Individualists would be surprised by a programme that finally understands them and offers more ways to earn and redeem. If travel brands were to realise their potential, and provide them with relevant reward choices combined with more frequent communication, they could become life-long members.
Why are they important to you? The Individualists live in their own world, so it can be difficult to gain their trust. Once they’re on-board, they can prove extremely profitable for companies. Take the time to target them, as they are heavily influenced by reward programmes and will remain devoted to your brand. But once they leave your programme, they’re very unlikely to return.
How do you reach them? Regular communication and reward variety are crucial to attracting the Individualists. So be sure to send them more personalised communication to ensure they are positively influenced and stay with your brand. You should also provide them with a wider choice of rewards that can be obtained even by a relatively low frequency of interaction.
60%
They know hotels - 60% stay in hotels an average of three times a year
54%
Rewards matter to them – 54% say they are the most important factor when choosing a travel provider
33%
They aren’t very happy – less than a third are satisfied with their current reward programme
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JULY
What’s more, Safeguarders enjoy a wider variety of activities than most in their free time alongside the occasional trip, such as taking a weekend break to Rome or that all-inclusive week in Mexico. They also like to indulge in activities closer to home: reading, listening to music or just spending time with the family.
What do they think about reward programmes?
THE SAFEGUARDERS Who are they? Safeguarders are most comfortable in familiar surroundings. With 41% unable to live without a laptop or PC, they are happy using technology but not completely immersed in it. Therefore, while familiar with the latest technology, they still prefer more direct methods of engagement when booking a holiday.
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Whilst Safeguaders are not the most frequent travellers, they do enjoy going on family holidays resulting in high points value trips, so a point per spend reward model could be considered. Safeguarders, however, may not want to redeem points on further travel rewards due to their infrequent travel habits. Therefore, they appreciate a wider ranger of rewards from outside of the brand’s inventory to match their active lifestyle.
Why are they important to you? Safeguarders are of great potential to your reward programme because when selecting
travel providers, rewards offered is one of the most important factors. Because Safeguarders are influenced by reward programmes in their purchase decisions, offering a wide range of rewards to match their more varied lifestyle will help to drive greater engagement, loyalty and revenue generation.
55%
They don’t necessarily want travel rewards – 55% do not want to receive products from the brand’s own range
39%
They are open to influence – when selecting a travel provider, 39% look at rewards offered and 35% look at customer reviews
59%
They like the certainty of direct relationships – 59% still choose to book with airlines or hotels directly
How do you reach them? Communicating with Safeguarders is an opportunity that should be embraced, as they actively want to talk directly with your brand. Therefore making sure that you maintain an open direct channel for Safeguarders is essential to keep them engaged. Don’t overcomplicate the user journey and risk losing their custom unnecessarily. Due to a variety of activities undertaken, there is the opportunity to promote a wide range of rewards that boost earning potential - complementing their lifestyle. With increased points and miles in the bank, that trip to Rome or holiday to Mexico becomes all the more tangible, so tempt the Safeguarders with communications that help them to be inspired to book their next trip.
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How the Grand Wanderlusters are changing reward programmes The Grand Wanderlusters have their individual differences but they are all savvy in their own way. Some shop around before committing to a purchase and others are not afraid to switch travel providers in search of a better deal. The connecting thread is the ever-growing need for travel brands to understand more about what motivates their travellers. So how do travel companies engage with this discerning audience in the digital age? The simple answer is by tapping into the Grand Wanderlusters’ behaviours and understanding what makes them brand loyal. We know that consumers are influenced by peer reviews, reward programmes and brand reputation – this is not news to us – but what our research has found is that reward programmes are becoming increasingly important in the purchase process; often acting as the tipping point between choosing your brand over the competition.
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According to the research, 74% of travellers’ travel purchase decisions are influenced by their reward programme. In effect, that’s around three-quarters of all your members potentially choosing a competitor if your offer is not up to scratch. Get rewards right and you increase customer loyalty and improve the bottom line. But fail to evolve to meet the Grand Wanderlusters’ needs, and you’re likely to lose them. Just as ‘The Grand Tour’ no longer fits the requirements of the modern traveller, outdated reward programmes need to evolve too. Brands need to recognise the importance of tailoring reward programme offerings. A reward programme that worked ten years ago will not keep-up with the expectations of today’s mobile-first consumer – choice is everything. Grand Wanderlusters want to redeem their rewards on products and experiences that fit with their lifestyle. It’s time to examine how your reward and redemption programme is constructed, managed and communicated, and reinvent it for the Grand Wanderlusters.
TRAVEL ANNOUNCEMENT! 67% of respondents are not fully satisfied with their travel reward programme
74% of travellers travel purchase decisions are influenced by their reward programme
86% of travel programme members want a greater choice of rewards
82% of travellers want to choose which categories of rewards they want
78% of travellers would like reward
programmes to be easier to understand
77% of travel reward programme members want to proactively help shape their programme
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How do reward programmes need to change?
are already browsing travel online and want their reward programme to be part of that experience.
Give consumers more control
Clearly, for reward and loyalty programme managers, a much more targeted approach should be a core focus. Think about multiplatform access and the demand for online for example: the explosion of personal devices, such as smartphones and tablets, has led to new consumer behaviours. This, of course, affects the way consumers want and choose to interact with brands. For example, if half of your members prefer to redeem on a mobile device and your programme isn’t mobile compatible, you are pushing your members towards a rival programme.
The Grand Wanderluster has - and expects greater choice and flexibility than ever before when it comes to shopping for hotels and flights. With a multiplicity of channels and opportunities to interact with brands, travel companies need to be smarter than ever when it comes to engaging with their customers. We know from our research that travel brands are failing to keep pace with today’s on-demand consumer. Indeed, 74% believe their programme would be better if they could access rewards online. This is probably because consumers 26
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Connectivity is a very important point. Aspirationals and OnDemanders simply won’t engage with your programme unless they can access it how they want. Over half (57%) of Balancers prefer to redeem
Redemption preference
80 70 60
Mobile
50
Laptop
40
Tablet
30
Traditional (phone and in-store)
20 10 0 16-24
25-34
35-44
45-54
55-64
65+
online and even many of the Safeguarders are looking for online redemption options.
and the more effective you can be in your communications moving forward.
Lower the barrier for redemption
Considering that the majority of travel companies cannot recognise revenue for unredeemed reward points, it’s imperative that as many customers convert as possible, and as quickly as possible. Collinson Group research shows that once members start to redeem, they can be 5 to 7 times more profitable to your business than those who don’t. Ultimately, this is a sure-fire way to improve the ROI of reward programmes.
Each Wanderluster has a different level of attainable spend. The key is to ensure that all are presented with an accessible and relevant range of rewards – that’s the right products, at the right price, at the right time. The sooner the first transaction takes place and the member becomes engaged in your programme, the more likely they are to spend again. The more active this relationship becomes, the more you can learn about that individual member
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Remember, too, that it’s not always about frequency of travel. Family holidays and signature trips might only happen occasionally, but can be very lucrative for travel providers. The less-travelled Individualists need more incentive to travel in their leisure time, while Balancers would welcome the opportunity to supplement points with cash for higher rewards. Giving them the option could get them on board with your brand for the longer term.
CHOICE
Deliver more flexible options and choice Our research shows that nearly nine in ten (86%) travel programme members think a greater choice of rewards would improve their programme. In short, the more value a programme member perceives from their travel provider, the more likely they are to remain engaged. This, above all, will leverage the best returns from cost efficiencies. At the same time, 34% of travellers would like rewards that are not part of the brand’s own range, so variety is the key.
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FLEXIBILITY
ENGAGEMENT
The internet and mobile technology revolution has undoubtedly driven this shift towards consumer choice and control, and travel providers must embrace this flexibility. Grand Wanderlusters will, for example, respond well to gifting options, peer reviews, forums and joint-points accounts for families. Specifically, On-Demanders will become strong online advocates for your reward programme if they like your approach. And of course, online advocates attract new members and improve brand perception. This variety is further catalysed by the rise of social media, which is encouraging a right-here-right-now attitude. If brands fail to segment and profile their customers in a way which factors-in their online and mobile behaviour, they won’t garner their attention. The programme of ten years ago simply won’t work for the Grand Wanderluster.
Make reward programmes easier to use and understand Nearly two-thirds of the Grand Wanderlusters (64%) don’t find the programmes very easy to understand, 63% don’t think they are very easy to use and 69% tell us they are not really impressed with the service they receive. The importance of this cannot be underestimated. The benchmark should be leading e-commerce sites for whom efficient purchases, measured by conversion of visitors to buyers is everything. We know that the Safeguarders prefer direct conversations, while the Aspirationals demand state-of-theart interactions, so again, programmes must be flexible to cater for everybody. Fail to do so, and the fall-out could be serious.
At the moment, many reward programme members fail to redeem their points against an offer. This may be because they do not know enough about the rewards on offer, because they feel their dream reward is too far out of reach, or simply because they don’t know how to redeem. Currently, an estimated 33% of the $48 billion annual reward points earned in the US each year go unused, according to Colloquy. That’s a considerable amount of tiedup revenue.
33% OF THE $48 BILLION annual reward points earned in the US each year go unused, according to Colloquy
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Communicate more effectively
Travel companies need to realise that in the digital age ‘communication’ is no longer just about content; it’s about delivering the right content on the right channel, at the right time for each customer. In order to communicate more effectively with Grand Wanderlusters, travel brands need to use the characteristics (outlined in this report) paired with their knowledge of their brand to identify;
Communicating with Grand Wanderlusters in a relevant and personalised way is the key to securing maximum value from your reward programme. We know Grand Wanderlusters are defined by unique characteristics and behaviours that guide their purchase decision, so it’s more important than ever that travel brands tailor their communications approach in line with these.
How often each Wanderluster wants to be communicated with
In a world where the consumer shapes the brand more than ever before – and two-way dialogue is the norm, the fact that 77% of travel reward programme members want to proactively help shape their programme by engaging directly with your brand – is a huge, huge opportunity waiting to be tapped.
On which channel they want to be communicated with and Which messages/rewards will encourage them to earn and/or redeem.
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Key takeaways: the evolution of your rewards programme The Grand Wanderlusters are here, and they expect a very different kind of reward programme. In fact, they don’t expect just one, but rather many programmes that are tailored to their varying wants, needs and desires. So for any travel brand to succeed, they must respond to the changing environment and evolve continuously to be more in tune with the Grand Wanderlusters. Listen to what they are saying, and give them exactly what they want and expect. It is vital to see this not as a challenge, but as an exciting opportunity for travel programmes to reinvent themselves. There’s no doubt that Grand Wanderlusters like rewards and their spending is influenced by them – they just want them on their own terms. After all, this is a consumer-centric world, and people expect to be in control. There’s no single solution, but there are strategies that will help ensure reward programmes truly appeal to the modern traveller:
Use the six different Grand Wanderlusters as building blocks to devise targeted travel reward programmes Don’t just categorise your members by age and income. Instead, look at interests, behaviours and emotions Create reward programmes that provide a seamless and positive customer experience in line with your overall brand proposition Communication should be a two way street. Listen to what your members want and deliver tailored communications accordingly
Perhaps most importantly though, the time to act is now. Two in three programme members are not currently satisfied with their travel reward programme. That’s the bad news, but the good news is that you know exactly what to do to turn things around. People love rewards, and it’s simply a matter of ensuring that what you offer is perfectly suited to the needs of the Grand Wanderluster.
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Do you recognise the Wanderlusters in your reward programme?
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@c_latitude #grandwanderlust
[email protected]
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About Collinson Latitude At Collinson Latitude, we unlock the value of your customer relationships by blending a unique combination of e-commerce expertise, content delivery and technology solutions. You will benefit from increased customer engagement which drives increased revenue. Your customers will benefit from access to a wider choice of products and services. Our track-record shows that we build successful long-term partnerships with our clients, who include many leading global brands. These relationships are founded on strong, mutually beneficial performance-based commercial modelling that drives both financial targets and engagement levels.
What we do Collinson Latitude drives daily engagement through multiple customer touch-points with your programme. We optimise value by structuring commercial models that are aligned to your objectives. We recommend the best content strategy and support the design and delivery of tailored marketing communications to drive high performance through effective interaction.
Contact Us For more information about Collinson Latitude and/or High Performance Reward Programmes, please contact us on:
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www.collinsonlatitude.com
[email protected]
@C_Latitude
