Table of Contents
Introduction
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- Key findings
Data Sources
Overview
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- The growth outlook
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- Figure 1: Overview of WEO projections, 2008-11
- Travel and tourism spending forecast
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- Figure 2: Travel and tourism expenditure worldwide, 2010-20
- Recent tourism trends
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- Figure 3: Recent trend in international arrivals, by world region, 2008-10
Loyalty Scheme Membership Totals
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- Figure 4: Summary of travel-related loyalty scheme membership by type, 2008-10*
- US carriers predominate
- Over 50% of the total
- United & Continental to merge
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- Figure 5: Major airline frequent-flyer schemes (members >1 million), up to 2010
- Some programmes quite small
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- Figure 6: Minor airline frequent-flyer schemes (members < 1 million), up to 2010
- Four large hotel programmes
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- Figure 7: Major hotel frequent-guest schemes membership, up to 2010
- Trend in US travel-related loyalty programme membership
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- Figure 8: Membership in travel-related loyalty programmes in the US, 2009
- US membership – two thirds of the worldwide total
- The Canadian difference
- More active participation in Canada
- Airlines have succeeded better than hotel chains
- Airline schemes reach a broader client base
- Airline rewards more interesting
- Effects of the recession
- Fewer air travel rewards
- Disparity in airline reward seat availability
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- Figure 9: Overall reward availability ranked high to low – seat availability for June-October 2010
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Airline Loyalty Schemes
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- FFPs a profit centre?
- Marginal costs low
- Airlines manage redemptions
- Award liability
- Breakage
- FFP points devalued
- Programme requirements
- East Asia & Pacific
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- Figure 10: Summary of frequent-flyer programme requirements for major airlines in East Asia & Pacific, 2010
- Europe and Africa
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- Figure 11: Summary of frequent-flyer programme requirements for major airlines in Europe & Africa, 2010
- North America
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- Figure 12: Summary of frequent-flyer programme requirements for major North American airlines, 2010
- South Asia and Middle East
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- Figure 13: Summary of frequent-flyer programme requirements for major airlines in South Asia and the Middle East, 2010
- Delta’s SkyMiles
- New Medallion benefits
- Choice Benefits
- Current and future programme modifications
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- Figure 14: Current modifications, as of June 2010
- Planned for autumn 2010
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- Figure 15: Modifications planned for autumn 2010
- Coming in 2011
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- Figure 16: Modifications planned for 2011
- American AAdvantage
- Recent programme enhancements
- Priority Baggage Delivery
- AAdvantage Upgrade Awards updated
- AAdvantage One-Way Flex Awards
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- Figure 17: Example 1 – combining a MileSAAver and an AAnytime award, 2010
- Figure 18: Example 2 – combining different classes of service, 2010
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- Figure 19: Example 3 – one way, 2010
- AA.com enhanced award booking
- United Mileage Plus
- Million Miles and Beyond Rewards
- Recent upgrades resemble American’s
- Unlimited upgrades on domestic flights
- Continental OnePass
- Alliances and loyalty
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- Figure 20: Airlines by alliance, June 2010
- oneworld
- oneworld tiers
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- Figure 21: Privileges according to oneworld status, 2010
- SkyTeam
- Corporate loyalty programmes
- Star Alliance
- Star Alliance Gold and Silver
Hotel Chain Guest Loyalty Schemes
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- Rewards
- Internal compensation schemes
- Multi-brand schemes
- Accor excludes its budget brands
- Exclusion works at high end
- InterContinental Priority Club Rewards
- IHG targets Hilton’s loyalty programme members
- IHG’s campaign
- Hilton’s reaction – only 10% of hotels involved
- IHG's mobile app
- Hotels Anywhere?
- Marriott Rewards
- Objective to break even?
- A liability of US$1.5 billion
- Properties under franchise and management contract must reimburse expenses
- Ritz-Carlton considering a loyalty rewards programme
- Ritz-Carlton guests prefer to be ‘recognised’
- Hilton HHonors
- ‘Have a Night on Us’ promotion
- HHonors leads in traveller opinion poll
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- Figure 22: Frequent guest programme poll*, July 2010
- Starwood Preferred Guest
- Starwood’s secret loyalty programme
- Lifetime client value
- Improved performance
Cruising and Car Rental Loyalty Schemes
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- Cruises
- Benefits kick in after five trips
- Interchangeability?
- No master account
- Car rental schemes
What Next?
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- More spin-offs of frequent-traveller schemes?
- A way to boost share prices?
- Social networking websites and loyalty schemes
- Social media users seek engagement
- A fine line between engagement and privacy
- Probably not realistic for the foreseeable future
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