Table of Contents
Scope and Themes
-
- What you need to know
- Definition
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
-
- Overview of the industry
- Differentiation (or not) among loyalty programs
- Growth of online travel sites impacts travel loyalty programs
- Consumer survey shows that income is the main driver of heavy travel
- Only 33% of online respondents are enrolled; 20% of the overall population
- Anyone can join any number of frequent flyer programs
- Plans not maximizing potential if consumers can’t get rewards
- Growth in the number of travel loyalty plans/redemptions will continue
- Game-changing development?
Market Drivers
-
- Key points
- Travel loyalty programs are a financial service that are driven by financial indicators
-
- Figure 1: U.S. GDP, at current and constant prices, 2001-06
-
- Figure 2: Corporate profits, at current and constant prices, 2001-06
-
- Figure 3: Median household income, 1995-2005
-
- Figure 4: Household income distribution, 1999 and 2005
-
- Figure 5: Travel expenditures in the U.S., at current and constant prices, 2002-07
-
- Figure 6: Total U.S. scheduled airline passenger revenue, at current and constant prices, 2002-06
-
- Figure 7: Domestic and international enplanements, 2001-06
-
- Figure 8: Total U.S. lodging revenues, at current and constant prices, 2002-06
-
- Figure 9: Hotel occupancy and revenue, 2001-07
-
- Figure 10: Total U.S. car rental revenues, at current and constant prices, 2002-06
-
- Figure 11: Motor gasoline retail price per gallon, U.S. city average, 2001-06
- Credit card ownership and usage continues to grow
-
- Figure 12: Total U.S. credit card charge dollar volume and transactions, 2000-05
- Population trends and projections
-
- Figure 13: Population aged 18+, 2001-11
- Figure 14: Frequent flyer program participants, by age, 2001-11
Market Size and Trends
-
- Market size
- Key points:
-
- Figure 15: Total redeemed travel rewards, 1999-2007
- Figure 16: Total airline loyalty program cumulative unredeemed miles, 2000-05
- Market trends
- Game-changing development?
Supply Structure
-
- Key points
- Airlines
-
- Figure 17: Membership in top airline loyalty program providers, 2007
- Airline global alliances
-
- Figure 18: Top three airline global alliances, 2007
- Discount airline programs
-
- Figure 19: Name and type of frequent flyer programs, by discount airlines, January 2005
- Hotels
-
- Figure 20: Top five hotel loyalty program providers, 2007
- Internet travel services
- Car rental companies
-
- Figure 21: Top ten U.S. car rental companies, by sales, 2006
Advertising and Promotion
-
- Key points
- Television spots
- Airlines
- Southwest Airlines
-
- Figure 22: Southwest Airlines visa promotion
- Hotels
- Best Western
-
- Figure 23: Best Western Gold Crown Club International Rewards Card promotion
- Comfort Inn
-
- Figure 24: Comfort Inn Choice Privileges promotion
- Crowne Plaza
-
- Figure 25: Crowne Plaza meeting planner rewards
- Hyatt
-
- Figure 26: Hyatt Gold passport program benefits
- Figure 27: Hyatt Gold passport program hotel locations
- Internet travel companies
- Orbitz
-
- Figure 28: Orbitz rewards now! program hotel mega sale
- Credit cards
- American Express
-
- Figure 29: American Express/Delta SkyMiles promotion
- Figure 30: American Express membership rewards points program
-
- Figure 31: American Express pay with points program
- Capital One
-
- Figure 32: Capital One no hassle rewards program air travel rewards
- Figure 33: Capital One no hassle vacation travel rewards
- Chase
-
- Figure 34: Chase Freedom rewards campaign
- Figure 35: Chase Freedom travel rewards
- Citi
-
- Figure 36: Citi AAdvantage card promotion
- Figure 37: Citi Premier Pass card travel rewards
- MasterCard
-
- Figure 38: MasterCard travel rewards
The Consumer
-
- Introduction
- Consumer survey highlights
- Frequency of leisure and business travel
-
- Figure 39: Number of times consumers traveled in the last 12 months for leisure or personal reasons that included air travel, a hotel stay or a car rental, by gender, race/ethnicity, age, household income, marital status, presence of children and region, May 2007
-
- Figure 40: Number of times consumers traveled in the last 12 months for business reasons that included air travel, a hotel stay or a car rental, by gender, race/ethnicity, age, household income, marital status, presence of children and region, May 2007
- Participation of travelers in loyalty programs
-
- Figure 41: Percentage of consumers who have traveled in the last 12 months who have or belong to travel loyalty programs, by gender, race/ethnicity, age, household income, marital status, presence of children and region, May 2007
- Consumer participation in frequent flyer programs
-
- Figure 42: Participation in frequent flyer programs, by gender, race/ethnicity, age, household income, marital status, presence of children and region, January-October 2006
-
- Figure 43: Participation in specific frequent flyer programs, January-October 2006
-
- Figure 44: Number of frequent flyer programs in which respondents are enrolled, by gender, race/ethnicity, age, household income, marital status, presence of children and region, January-October 2006
-
- Figure 45: Participation in specific frequent flyer programs, by race/ethnicity, January-October 2006
-
- Figure 46: Participation in specific frequent flyer programs, by household income, January-October 2006
-
- Figure 47: Participation in specific frequent flyer programs, by region, January-October 2006
- Consumer participation in hotel frequent guest programs
-
- Figure 48: Participation in hotel/motel frequent guest programs, by gender, race/ethnicity, age, household income, marital status, presence of children and region, January-October 2006
- Consumer participation in car rental clubs
-
- Figure 49: Participation in specific car rental clubs, January-October 2006
-
- Figure 50: Participation in specific car rental clubs, by race/ethnicity, January-October 2006
-
- Figure 51: Participation in specific car rental clubs, by household income, January-October 2006
- Consumer usage of miles and points
-
- Figure 52: Consumer usage of miles and points that they have earned, May 2007
-
- Figure 53: Consumer behavior regarding frequent flyer programs, May 2007
The Future
-
- Market forecast
- Total redeemed travel loyalty program rewards
-
- Figure 54: Forecast of total U.S. redeemed travel rewards, at current and constant prices, 2007-12
- Forecast factors
Appendix: Trade Associations and Government Agencies
Back to top