6 ways travel loyalty programs screw you
I have a love-hate relationship with loyalty programs. I love to travel and I love getting status for it, but I despise the rules and complexity that comes along with that. And I know I’m not the only one who feels this way. So when we were developing our rewards program, HT Perks, we looked to hotel and airline loyalty programs for inspiration… for what not to do.
I’d recommend this approach to other entrepreneurs who are starting a business. Look for the pain points in existing products or services, and the white space unoccupied by them, and see where you have an opportunity to build something new. As I’ve mentioned before, you’ll find success by not only building a better mousetrap, but also a completely different way of catching mice.
Here’s what we identified as the most frustrating things about existing travel loyalty programs, and how we took the opposite approach at HotelTonight.
The rules are way too complicated
Reading the fine print on some of these programs should earn you a Master’s degree. The varying points based on how you book… and where you book… and fare class… the list goes on and on. It’s far too complicated, and easy to misunderstand.
How we did things differently: We made it drop-dead-simple. The more you book on HotelTonight, the better the perks get.
Blackout dates suck
Speaking of fine print, the blackout dates and limitations in some of these programs make it challenging and frustrating to redeem your points.
How we did things differently: No blackout dates. None.
Points get devalued arbitrarily
Loyalty programs are always changing, and you might find your points are suddenly worth a lot less than they used to be. It’s confusing, and frankly, kind of shady.
How we did things differently: We don’t work with points or any kind of made up currency. There’s nothing to be devalued, only better deals and perks to be had.
Status gets reset every year
Let’s say you travel all the time for work and have reached a super elite status level. But then something comes up, with your family, or with work, and you don’t fly for a year. With many loyalty programs, bam. You get reset to the same status as those who’ve never flown with the airline.
How we did things differently: HT Perks status doesn’t expire or reset. In fact, when we rolled it out, we retroactively applied everyone’s past bookings to their status. The only way to go is up.
You have to spend a ton before you get benefits
10 nights in a hotel or 25,000 miles traveled before you get a free night or flight is a big hurdle. And the nasty industry secret here is that there's a lot of breakage, meaning that your nights or mileage points often expire well before you reach the amount you need to redeem them.
How we did things differently: Once you’ve booked and spent $100 (which is a single booking for most people), you’re automatically in, and you start seeing extra discounts and perks instantly.
They’re not fun
Ok, if you’re obsessed with reading complex rules and gaming the system, maybe they’re a little fun. But for those of us who don’t have the time or interest to become master travel hackers, they’re simply infuriating.
How we did things differently: Not only do HotelTonight’s deals get better the more you level up, but we also throw in fun surprises for our Perks members, from free drinks to sweet upgrades to access to exclusive events (we’ve got a ton more cool stuff in the works that I don’t want to reveal just yet). And we listen: we love hearing what our bookers want, and incorporating that feedback as we think about adding new perks and new levels. Fun is pretty fundamental to the HotelTonight brand and our company culture, so of course our program needed to follow suit.
What bugs you the most about loyalty programs? And what perks would you love to see?
Pro Account Executive
7yI'd really like to see the same elite status level applied across all brands; especially when it comes to vacation clubs and timeshares where loyalty perks don't exist, you have mandatory check-in and check-out times, and upgrade and complimentary are foreign words.
Pesquisador no Inmetro
8ygood !
Finance Director at St Peter's Church Brighton
8yAir Miles (now Avios) are a big deal in the UK, but have become increasingly worthless over the 25 years or so they have been going. For instance, London to Turin is about 1100 miles (my wife lived there when I first met her) and it used to cost 1100 miles to get there; now it costs several thousand. And you don't get a ticket for using those several thousand Avios, you have to top that up with money as well and suddenly it's not so cheap. In fact often, it's still more expensive than booking with an alternative airline. So instead of buying your ticket, you can use them for car hire. But what happens is that you plug in how many you have and they tell you what car you can get, which is firstly disproportionately less than the value of air ticket you could have bought, but more often only gives you a discount on the cost of the car, leaving you to make up the shortfall. The trouble is, the headline car hire rates they quote are so vastly inflated that despite the loyalty contribution, you end up paying more in making up the shortfall than you would have done going to the company and hiring the car direct. It's all one big con. Channelling their budget into making their pricing more competitive would be much more transparent and far more valuable to their customers.
Strategy, Innovation and Digital Transformation
8yI would appreciate to have a loyalty program relying on my mobile phone or something I have rather than having dozens of useless cards.
Barber/Stylist at QualiTee's Barber & Salon
8yVery Helpful..Especially since I'm looking to roll out a loyalty program myself very soon.