loylogic: freddie award 2009 - frequent flyer preferences
TRANSCRIPT
Have miles and points become more valuable to you, now that the global economy is going through a downturn period?
Yes
If only I could use them...
No
24%66%
10%
The SurveyDuring the 2009 Freddie Awards, Loylogic asked frequent travelers questions related to their points and miles redemption behavior. The survey was online from January 15 to February 29, 2009. Participants had a chance to win a Ugobe Pleo Robotic Toy.
The PanelLoylogic collected over 4,000 votes from members of over 60 loyalty programs worldwide. Survey participants are members of the following frequent flyer, frequent guest or credit card programs (top 5 only).
The Results
Do you compare prices when you buy merchandise online paying in cash?
I always compare
I only compare my preferred merchants
I do not compare and just buy when the price is right
74%
8%
18%
3
When you buy a merchandise reward with miles or points, what do you typically buy?
Something expensive that I would not buy with cash
Something that I need and would also buy with cash
Gifts for my family and friends
31%
48%
21%
21
Do you calculate the cash-value per mile or point when you buy a merchandise reward online paying with miles or points?
Yes, I calculate the value I get
No, I don’t really care
70%30%
4
Frequent Flyer Survey 2009
King Club
Miles & More
AAdvantage
Sky Miles
Jet Privilege
Marriott Rewards
Hilton HHonors
Starwood Preferred Guest
Priority Club Rewards
Hyatt Gold Passport
Membership Rewards
Citi Thank You
Diners Club Rewards
WorldPoints Rewards
Chase Freedom15%
10%
8% 8% 4% 22%
21%
8% 7% 4% 13%
7% 4% 3% 2%
Which reward program that you use, offers the best rewards?
FFP
Hotel
Credit Card
7
Would you like the flexibility to use your miles or points, while shopping online at your preferred merchant websites?6
Yes
No
I don't care
5%
84%
11%
39%32%
29%
The FindingsA topic at the forefront of loyalty industry debates, and the basis of numerous press articles over recent months, has been how loyalty will make out in the global economic crisis. Here is the result from our survey: 66% of frequent travelers find their miles or points to be more valuable now and 24% wish they ‘could also use them’.
To illustrate this point: 48% indicate that they buy ‘something that they need and would also buy with cash’ and 31% use their points or miles to buy gifts for families and friends. Only 1 in 5 frequent travelers buys ‘something expensive they would not buy with cash’.
In terms of comparing deals ‘e-shopping’ does not really differ from ‘reward e-shopping’: 74% of frequent travelers compare prices on the web and almost a same 70% calculate the cash-value they get for their miles or points redeemed.
Half of the participating frequent flyers find that programs can make a ‘reward difference’ when offering ‘value’ for miles or points; 1 in 4 prefers a ‘large choice of rewards’ and 15% find it important to offer ‘an easy-to-use reward shop’. In addition, a staggering 84% would like the opportunity to use their miles or points directly on their preferred merchant websites.
Finally, almost 40% of frequent travelers (not frequent buyers) find credit card programs offer the ‘best rewards’. However, frequent flyer programs with 32% are still slightly ahead of frequent guest programs with 29%.
The ContactTo find out how to structure your rewards proposition to offer real differentiating value to your program members, please contact:
Robert MoerlandPhone +41 43 500 51 55Email [email protected]
© 2009 Loylogic Inc. All rights reserved.
What makes the ‘reward difference’ for you?
Value for my miles
Large choice of rewards
Fun to use my miles or points (auctions, games)
An easy-to-use reward shop
Other reason
5
6%
49%
24%
15%
6%