Thiruvananthapuram: A survey by travel tech firm IBS Software found that air travelers have little understanding of spending loyalty points. Survey shows that 63 percent of air travelers are members of Airline Loyalty Program (ALP), but people are reluctant to spend loyalty points. The survey was conducted on 1,500 passengers who had traveled by air from Singapore, Hong Kong and Dubai in the last 18 months.
63% of respondents are members of airline loyalty programs, including tourists and business travelers. The rest are interested in opting for supermarket (44%), clothing brand (36%) and restaurant (33%) schemes.
Despite the widespread adoption of airline loyalty programs, more than half do not know where to redeem their points and 56% do not take advantage of them. In Singapore and the UAE, the figure is 64 percent. Of those who have never been a member of a loyalty program or who have expired, 37% of respondents to the survey said they were unaware of the benefits. 23% of respondents cited the perception that building up points is too difficult as a reason for avoiding loyalty programs. In Singapore it is 33%.
58% of those who are not already part of a loyalty program say they are willing to try it in the future. This is 67% among 26-35 year olds and 64% in the UAE region. Only 46% of Hong Kongers are reluctant to try loyalty programs in the future. Easy check-ins (46%) and cabin class upgrades (44%) are the top two reasons for being willing to sign up new.
Members, on average, belong to at least two airline loyalty programs. Exclusive access to lounges (32%) and cabin class upgrades (31%) are seen as top benefits for this group. Class upgrades and non-expirable points are attractive to tourists. Fast-track check-in, instant rewards, and free tickets to events attract business travelers.
Markus Puffer, Vice President and Head of Loyalty Solutions, IBS said, “It is up to airlines to educate travelers about the benefits of loyalty schemes or they will lose interest in joining the club.” VIP lounges and class upgrades are fantastic perks. But if members don’t know how to build a point bank, the choice of benefits will be irrelevant, he said
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2023-07-13 13:05:00
