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Loyalty programs,
Influence or just a perk?
Consumers weigh in.
Report: 30% of Australians are not swayed by airline and loyalty programs
New data from YouGov Surveys has revealed that while a significant 59% of Australian consumers are members of at least one airline loyalty program, less than half (44%) of these members let their loyalty dictate their international flight bookings.
According to the latest report, 30% of Australians said their airline memberships have no influence on which international flights they book. Qantas Frequent Flyer is the most popular airline loyalty club, boasting a membership of 32% of Australians, followed by Virgin Australia’s Velocity Frequent Flyer (10%).
The top two benefits Australians most appreciated about being an airline loyalty club member were being able to redeem their miles for discounted/free flights (47%) and seat upgrades (32%).
Gender differences also emerged in the perceived benefits of these programs. Women were more likely than men to prize redeeming miles for discounted/free flights (50% vs 44%) and retail purchases (19% vs 15%). Men, on the other hand, were more likely to value hotel deals (16% vs 13%) and priority boarding (17% vs 9%).
In the hotel sector, 31% of consumers are members of one or more hotel loyalty programs. Accor Live Limitless/Accor Plus emerged as the most popular hotel loyalty club, with 12% of Australians holding membership. The top two benefits most appreciated are free breakfast and room upgrades (31%), and the ability to redeem loyalty points for discounted/complimentary stays (25%).
Again, gender differences were evident. Women were more likely than men to value free breakfast (38% vs 26%), as well as early check-in and late check-out (31% vs 20%). Men were more likely to prize earning bonus points (21% vs 12%), and the ability to transfer points to airline partners (18% vs 8%).
When booking accommodation, over a third (36%) of Australians first look for hotels close to desired locations first, before considering price and loyalty memberships. Only then will they narrow down by price and proximity. Yet 29% will first look for hotels within their travel budget, before considering memberships and exact location.
Men are again significantly more likely than women to prioritise hotels where they are a loyalty member from the beginning of their search (37% vs 22%).