According to a new report The tourism industry loyalty programs market is expected to reach a valuation of USD24bn in 2022. Sales are projected to increase at a 9.20% CAGR, with the market size reaching USD73.6bn by 2032.
GLOIn 2022, the market for loyalty programs in the tourism sector is anticipated to be worth USD24 billion. Market size is anticipated to grow at a 9.20% CAGR, reaching USD73.6 Bn by 2032. Following the COVID-19 epidemic, social media platforms are being used more and more to promote loyalty programs in the tourism industry.
The development of loyalty programs in the tourism sector market is being aided by the personalization of gifts, coupons given to loyal customers, discounts, and customized tour itineraries. When a tour operator achieves this, they keep their current clients, which helps them draw in new ones. According to an FMI analyst, “the market for loyalty programs in the tourism sector is growing as a result of the companies’ increasing digital presence.
Main Points
- The tiered program is the type of program that loyal customers most frequently choose to use. It offers a variety of discounts, personalized presents, etc., and as a result, the industry has drawn more customers.
- Due to the growth of digital marketing, the online booking segment is the most popular channel for loyalty programs in the travel industry.
- The travel industry’s tour groups are the ones who typically seek to reserve loyalty programs. This is due to the fact that customers typically receive loyalty points for anything they discover inside a given region, state, or nation.
- Consumers in this sector are typically between the ages of 26 and 35. This age group receives a lot because they travel frequently and earn lots of loyalty points, which they then use to pay for travel.
- Both positive and bad effects of the Covid-19 epidemic and lockdown were felt in every business:
- In the tourism industry, loyalty programs had both beneficial and negative effects. The adverse effects included an unwillingness to travel as a result of border controls, travel passport requirements, and testing. Thus, “staycations” may become a more popular and alluring choice, which is fantastic for “local” or domestic hotels and travel service providers.
- A new, updated strategy for how hospitality and tourism firms interact with clients and foster loyalty will emerge in the wake of the pandemic. Due of the pandemic’s consequences, customers have reassessed their travel requirements. As loyalty programs and points expire, travel opportunities are drastically reduced due to travel corridors (therefore making it harder to accrue points), and businesses that have closed have left a gap in their former customers’ lists of preferred brands, customer loyalty is “up for grabs” after the pandemic. It will be crucial to contact these dedicated prospects, so it will be vital to look at current loyalty programs and marketing strategies. By marketing benefits to your current customers and values to potential customers, you may reaffirm the value of loyalty programs to new customers who are seeking for a “new favorite.”
- Leading providers of loyalty programs in the travel industry are concentrating on enhancing their digital presence and attempting to find ways to keep their current consumers by offering individualized offers, discounts, etc.
