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For Travel Brands, Customer Loyalty Is Up for Grabs

While Covid-19 restrictions fluctuate around the world, the travel industry is still seeing strong demand from customers. According to the World Travel & Tourism Council (WTTC), travel and tourism in the U.S. will reach pre-pandemic levels in 2022. 

However, that doesn’t mean that the ways travel brands build relationships with customers will look the same as it did before. Many travelers have seen their points expire and their status decline, and they are embracing this time as a fresh start to reassess what they value in a brand and in travel experiences. According to Accenture, competition to win back old customers and gain new customers will be more intense than ever, giving travel brands a second chance to make a first impression. 

Loyalty doesn’t look quite like it used to—in fact, it’s up for grabs. As the world opens back up, marketers can maximize loyalty while also focusing on acquisition and revenue growth, which are crucial after years of disruption in the industry. 

Partner with creators to connect with new audiences

Travel marketers are looking for new ways to reach people earlier in their travel journeys to create long-lasting customer connections. That first touchpoint can begin and be sustained through partnerships with creators. 

Increasing evidence shows that consumers turn to creators as trusted sources as they make purchasing decisions. In a poll by Morning Consult, half of Gen Z adults and millennials surveyed followed at least one travel creator and 84% of those people used travel creators for recommendations.

Additionally, a 2020 Gfk study commissioned by Facebook found that 58% of consumers surveyed had bought a new product in the previous six months because of a creator’s recommendation. Consider partnering with creators and raising awareness of your brand within their communities.

Expand your definition of the loyalty program 

When it comes to loyalty, think beyond points and programs. Brands can build deeper connections with customers through personalized offers like upgrades on a flight, discounts on airport taxi rides, local activities or special gifts upon arrival. 

According to Phocuswire, a recent Salesforce survey found that 73% of travelers surveyed expect companies to understand their travel needs and behaviors. Consider using Meta’s suite of Lead Ad products to help grow your customer base and expand your reach through more personalized communication and offers. 

Complete the loyalty loop with a seamless customer experience

Your app is the central touchpoint for converting possible travelers into bookers, communicating with them during their trip, and sending them offers for future journeys when they come home. Keep in mind that your app is only valuable if it’s used by your customers so it’s important to also invest in both organic and paid channels to drive installs of your app and ongoing engagement with your app; this is a proven strategy to drive high lifetime value customers. 

For those people who haven’t downloaded your app or want a quick interaction with your business, it’s also important to maintain a presence on business messaging apps such as WhatsApp and Messenger. The ecosystem of Meta Business Partners can support business messaging at scale to meet customers where they are most comfortable interacting with brands.

Build for the future of loyalty

As we saw during the pandemic, brands that were able to respond nimbly and adopt new technologies in the face of uncertainty were more capable of managing ambiguity. 

One way brands have adopted new technology is in leveraging Instagram Reels, a content format that enables brands to bring customers into their experiences with playful, short-form videos. Reels is the fastest growing content format on Meta technologies and, according to the Q4 2021 Meta earnings call, the largest driver of engagement on Instagram. 

Another way that brands are building for future experiences is through AR and VR, the building blocks of the metaverse. For travel, property tours of your hotel or restaurants, loyalty members-only events or experiences, check-in, and purchases could all take place virtually in this new digital realm. As an example of how brands are already incorporating the metaverse into their marketing plans, Wendy’s recently created a virtual restaurant where people can gather with friends, place virtual orders and play games for the chance to win discounts in real life. 

Take the open road to loyalty 

With years of travel disruption due to the pandemic, loyalty programs are making a comeback. The good news is that though travelers’ expectations have been drastically reset, they are open to new experiences and definitions of brand loyalty.

Travelers’ points may have expired, but their bags are packed and they are ready to explore the world once again. The brands that meet expectations for seamless and personalized delight are likely to capture hearts for the long run.

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Visit the Meta Travel webinar series for more travel resources and recommendations.