Research Insights Loyalty revisited

Loyalty revisited

November 2020
Phocuswright Research


Loyalty programs have been a pillar for travel brands wanting to attract and establish strong, long-lasting relationships with consumers. In the midst of a travel shutdown, can brands look to loyalty programs and feel confident they have a loyal customer base? Or do programs need to be revisited?

According to the Phocuswright research presentation by Mark Blutstein, first we must understand that as a group, any traveler who belongs to a loyalty program enjoys travel. They travel frequently and have no trouble spending on leisure travel with 25% spending over $6,000—twice as many as those who have no membership.

Using a brand repeatedly is a common view of being brand loyal and while travel is not a frequent purchase in the U.S. with only about an average of 2 leisure trips a year, U.S. travelers are also likely to visit the same destination year on year, giving brands a chance to keep connected.

Phocuswright Chart: PC20 Stream Loyality Revisited
(Click image to view a larger version.)

Now to understand loyalty, we need to ask are travelers loyal to brands? And what does loyalty mean in the travel industry? Are we only concerned with bookings and behaviors or is an emotional connection enough?

Phocuswright research analyst Mark Blutstein answered those questions and shared insights from recent research on U.S. travelers at The Phocuswright Conference Online 2020 (above video).  

For more insights into U.S. consumer travel, check out this recently published series, U.S. Consumer Travel Report 2020.

To unlock the series, plus the entire Phocuswright research library for you and your company, consider joining the leading travel and hospitality companies as a subscriber to Phocuswright Open Access.