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A new report co-developed by Skift and Rocket Travel by Agoda points out that many loyalty programmes face a widening value gap between what members want and what brands deliver.
Titled The Loyalty Value Playbook: Redemption Experience and Cash Spend as the New Benchmarks for Customer Growth, the report takes note of the rapid evolution of customer expectations and how the world’s perception of traditional loyalty models is also changing at a rapid clip.
The Playbook likewise offers a practical blueprint to close the aforementioned loyalty gap.
With 77 percent of consumers now quicker to drop a program than they were three years ago, this underscores how consumers are increasingly prioritizing loyalty on platforms that deliver value through clarity, flexibility, and relevance throughout the customer journey.
Why now?
Rocket Travel By Agoda developed the guide to help companies understand why traditional loyalty programs may need to evolve to meet modern guest expectations, risking lost revenue for brands.
For instance, according to Antavo’s Global Customer Loyalty Report, only around 50 percent of loyalty points earned are redeemed, while in a report by Cordial, 43 percent of customers stopped participating because the rewards took too long to earn.
Grounded in original research, case studies, and expert interviews, the playbook shows how well-crafted loyalty programs drive repeat bookings and cash spend, strengthening guest relationships.
By leveraging zero-friction experiences and AI-driven personalization, it empowers travel brands spanning airlines, hotels, and beyond to meet the demands of modern travelers, in line with Agoda’s commitment to making travel more accessible and rewarding.
As Rocket Travel head Damien Pfirsch puts it: “The challenge and opportunity for loyalty programs is that expectations haven’t shifted from one set of benefits to another, they have expanded. Travelers still want the traditional perks, but they also expect more, making loyalty harder to manage. This report equips travel brands with a playbook to rebuild guest trust through clear, flexible, and relevant loyalty experiences, boosting both point redemptions and cash bookings.”
A relevant guide
In line with the report’s release, Rocket Travel by Agoda also launched a guide to help companies transform failing loyalty programs based on clear metrics.
The guide includes six capabilities that focus on getting the most out of loyalty programs by focusing on best practices in redemption, usability, transparency, and exclusivity.
Relevant measures include:
- Data and Personalisation Engine: Harness guest behavior and AI-driven insights to deliver tailored recommendations, increasing redemption value and booking conversions.
- Partner and Inventory Strategy: Expand high-quality room and experience inventory with competitive pricing and exclusive perks like early check-in or late checkout.
- Marketing Technology and Customer Journeys: Minimize point breakage with lifecycle messaging and clear value explanations to spur repeat cash bookings.
- Governance and Controls: Enforce fair dynamic pricing with transparent rules and advance notices to sustain guest trust and reduce complaints.
- Cross-Functional Ways of Working: Unite loyalty, operations, and data teams to optimize metrics like repeat cash bookings and guest lifetime value.
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Source: traveldailymedia