If you’ve ever tried to book a flight using airline miles, you understand just how frustrating that process can be. There are multiple credit cards that offer airline miles as a reward, and the airlines themselves offer credit cards and loyalty programs. But blackout dates and restrictions, not to mention the astronomical number of miles it seems you must accumulate to actually gain any benefits, make many question whether travel rewards programs are worth the hassle.
According to Phocuswright’s 2017 study U.S. Leisure Traveler: Loyalty, two-thirds of U.S. travelers participated in travel loyalty programs in 2016, and most participated in multiple programs. But when you go to book a flight, it’s fares that dictate the purchase, not loyalty. Be honest, would you pay an extra $100 just to travel with a particular airline? It’s the same with hotels. Give me a great rate on a nice room and I’ll happily stay with the competitor, loyalty program or no.
And for those who do have the financial freedom to show that kind of loyalty, airlines are not exactly giving them much in return. Now that pretty much all the airlines nickel and dime their passengers with baggage fees and surcharges for an extra inch of legroom, and hotels find every reason they can to jack up their rates, it’s not as easy to give those loyalty members the rewards — read: upgrades — that they are looking for.
So what can help bring loyalty back as a real revenue driver for airlines and hotels? Blockchain may not be a cure all, but it is already helping travel brands revamp their programs.
Today, customer loyalty is influenced not just by discounts and deals but by financial rewards and programs highly tailored to individual needs. Personalization is key in most loyalty programs and travel is no different. When you travel, whether for business or pleasure, you want to feel comfortable and at ease.
Hotels that know your favorite type of sparkling water and have it waiting in your room, or airlines that automatically place you in an exit row because they know your preferences go a long way toward making you feel taken care of.
These travel brands can only know these personal details if you feel comfortable sharing with them. Blockchain offers the kind of data security that makes this possible. Blockchain can provide visibility into all the transactions and interactions that make up a trip — from the site you book with to the way you take your coffee in the hotel restaurant to the time you need a taxi waiting to take you to your meeting. Travel brands can use these patterns and preferences to make your next trip even better. That information is all secured and verified by blockchain.
And when it comes to the actual management of loyalty programs, blockchain streamlines the process by facilitating the conversion of rewards — be they points or miles — into a single currency.
A blockchain-powered loyalty app can allow members to convert points and combine them in order to redeem the rewards they really want, the ones that actually build loyalty. When I can combine my airline miles with my hotel points and restaurant rewards to actually score a free flight or a free two night stay somewhere I truly want to travel, I’ll be more inclined to pay real attention to these programs, and more inclined to feel loyal to a brand.
Travel is one of the most prolific loyalty categories, and often one of the most problematic. Unlike redeeming points for a sample of perfume or getting free shipping, travel purchases are big-ticket items and there is a lot riding on the service you receive. Blockchain technology can take much of the stress of planning and paying for travel off the consumer’s plate, and it can help brands provide the level of service and care that encourages travelers to stay loyal.
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