Six reasons why traditional loyalty programs need shaking up

Sam Shank, chief executive of hotel booking app HotelTonight, reveals why traditional travel loyalty programs leave a lot to be desired

People tend to love loyalty programs and being rewarded for doing what they’re already doing: shopping, travelling, sleeping.

But the harsh reality is that most travel loyalty programs don’t offer as many benefits as they’d have you believe. Littered with rules and complexity, that dazzling reward quickly loses its shine.

If you want to build a better program, look to other existing products or services and poke the pain points.

Figure out what works and what doesn’t, the gaps in the service and what opportunities there are for you to build something new.

When we created HT perks, HotelTonight’s rewards program, we made sure to scrap the term “loyalty program” internally to ensure we were creating something new that stood out from the crowd.

It’s not only about building something better, but something that captures people’s attention in a completely different and innovative way.

Complexity

Most people aren’t going to read the fine print – especially when it’s as complicated as the ones found in many loyalty programs.

Plus, the details are usually different for everyone, based on how you booked, where you booked and what you booked.

One thing they all have in common: they’re all far too complicated and easily misunderstood. If you can avoid this, you’ve already got an edge.

Blackout Dates

Once you’ve successfully navigated your way through the sign-up process, you’d probably think you’re enrolled and ready to go. Not so fast!

Blackout dates and limitations often stand in the way, making it tricky to redeem points and reap benefits.

This can have a negative, anti-loyalty impact that overshadows any positives the program was designed to create.

Removing or limiting blackout dates means happier, more engaged customers that keep coming back for more.

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