NEW
YORK, Jan. 22, 2013-- Deloitte today released "A Restoration
in Loyalty," an inaugural survey that provides insights into consumer
travel behavior and loyalty program satisfaction. The survey reported a
steep
decline in consumer loyalty to travel brands. Only eight percent of
survey
respondents indicated they always stay at the same brand of hotel
brand, while
just 14 percent of survey respondents always fly on the same airline.
"According
to Deloitte's survey, it is clear that travel brands need to up their
game if
they want to drive genuine loyalty among consumers," said Adam
Weissenberg
, vice chairman, Deloitte LLP and U.S. Travel, Hospitality and Leisure
leader.
"With heightened competition and eroding customer loyalty, hotels and
airlines, now, more than ever, need to focus on enhancing and
personalizing the
consumer experience."
The
Decline of the Loyalty Program
Considering
that most travel brands consider reward programs as the cornerstone of
consumer
loyalty, such programs ranked low in importance for influencing
consumer travel
(20th out of 26 attributes for hotels, and 19th
out of 26
attributes for airlines) – well behind value and past experience. Only
55
percent consider loyalty programs of high importance when choosing
airlines and
45 percent consider loyalty programs of high importance when choosing
hotels.
Furthermore,
the survey found that most consumers believed even grocery stores had
much more
innovative and ultimately rewarding loyalty programs – just over half
of survey
respondents said they are satisfied or very satisfied with their hotel
loyalty
program (56 percent) and airline loyalty program (53 percent).
The
Pragmatic Traveler
The
state of the economy continues to affect consumer travel habits, with
value for
money ranking as one of the most important considerations when booking
hotels
and flights. The survey found consumers seek value for money, comfort
and
location when choosing a hotel, while on-time arrivals and departures,
safety
and value for money are the most important factors for choosing an
airline.
Consumers are no longer craving the luxury of premium class,
particularly when
it comes to domestic travel – 64 percent of consumers said they fly
economy on
domestic flights for business (46 percent for international), while 79
percent
fly economy for leisure on domestic flights (66 percent for
international). The
price of gas continues to have a strong impact – 61 percent of
respondents said
gas prices had some effect on their travel plans.
It's
Not All about Smartphones and Social Media
According
to the survey, 63 percent of respondents never want to interact with a
travel
brand via social media and 44 percent never visit social media and
review sites
for travel. Additionally, 80 percent of respondents have never
downloaded a
hotel or airline app to their smartphones. Meanwhile, nearly half of
survey
respondents (49 percent) have used flash sale sites, to follow
discounts on
travel. In fact, the majority of consumers are still using
tried-and-trusted
methods to book travel reservations – 61 percent use hotel and 59
percent use
airline websites most frequently. What really matters to consumers when
being
engaged by travel brands is a secure and easy purchase process, email
discounts
and the latest news.
At
a time where consumers are more likely to show loyalty to a soda brand
than an
airline, what can travel brands do to combat this?
"Travel
brands need to be more innovative and clear in communicating their
product and
service offerings," added Weissenberg. "For example, Deloitte's
research showed that while earning and redeeming points are the most
important
attributes for choosing hotel and airline loyalty programs, travel
brands
should focus on enhancing the customer experience, making rewards
personally
meaningful, encouraging loyalty with unexpected rewards if they want to
boost
consumer engagement, and ultimately building long-term customer
relationships."
A
full copy of the survey is available on Deloitte's website at: www.deloitte.com/us/pursuitofloyalty.
About
the Survey
The
web-based survey was commissioned by Deloitte and conducted by an
independent
research company between Oct. 18 and Oct. 23, 2012. The survey polled
4,000
hotel and airline customers, based on hotel stay and/or airline travel
during
the past 12 months.
About
Deloitte's THL Practice
Deloitte's
THL sector offers a broad range of services to travel, hospitality and
leisure
clients, including assisting clients with branding, operational
planning, asset
ownership and development, promotion and emerging technology. For more
information about Deloitte's THL group, please visit http://www.deloitte.com/view/en_US/us/Industries/travel-hospitality-leisure/index.htm.
About
Deloitte
As
used in this document, "Deloitte" means Deloitte LLP and its
subsidiaries. Please see www.deloitte.com/us/about for a detailed
description of the
legal structure of Deloitte LLP and its subsidiaries. Certain services
may not
be available to attest clients under the rules and regulations of
public
accounting.