24 September 2009

RIP: reward programs?

There's been a decline of almost one-third in frequent-flier, hotel points and other travel rewards programs in the last two years, a Colloquy research firm survey of US consumers finds.

"On average, the survey finds, travelers actively participate in 1.5 programs now compared with 2.2 in 2007. That means they’re adding to accounts or cashing in points from the programs at least once a year," says USA Today.

The reasons for the drop are varied, travel analysts say.

Business travelers aren’t on the road as much. Airlines and hotels are working hard to hang onto their best customers in tough economic times and give them deals.

Corporations have negotiated contracts with preferred airlines and hotels and penalize employees who go outside them.

Many travelers may be simply tired of juggling multiple loyalty programs.

Business travelers, especially, are choosing one or two of their favorite airlines, hotels and rental car companies to avoid the headache of keeping up with expiration and blackout dates.

By David Wilkening

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Your Comments (3)

loyality a two way street

while many travelers are concentrating their programs for the best return. many more are seeing the effort on their part to be loyal is not returned from the program, especially when they need it most.

By William Connelly, Friday, September 25, 2009
Reward participation logical result of airline cutbacks

Most airlines (and other travel providers) have cut back the length of time that people can keep their accounts open, typically reducing the traditional 3-year limit to 18 months. This means that the VENDORS are closing many accounts, even though the TRAVELERS would prefer to keep them open (and keep their accrued miles). This is an interesting financial double bind for the companies - on the one hand they want client loyalty and high value of points in case they want to sell this "asset" of accrued points; on the other hand, they want to show as low as possible a liability (of accrued points) on their balance sheet. I for one plan to AVOID any hotel or airline which has confiscated my points after 18 months. Why bother when other vendors still let me use their programs in the way that works best for me.

By Philip Sheldon, Friday, September 25, 2009
Forget about Loyalty Mileage or Points

Members Hotel Network (MHN), www.mhnsaves.com, offers CASH Rewards to its members for their hotel stays. NO strings attached. It is as simple as that !!!!!

By Vinit Mody, Friday, September 25, 2009