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Grand Wanderluster

How the travel industry has changed

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0% found this document useful (0 votes)
189 views36 pages

Grand Wanderluster

How the travel industry has changed

Uploaded by

cocorocara
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 36

The Grand

Wanderluster
A new perspective for the
modern day travel reward
programme

A COLLINSON GROUP COMPANY

#grandwanderlust
#grandwanderlust

Executive Summary
Todays traveller has come a long way. They
go further, faster, more often and now control
practically every element of their trip. They
expect more from brands on their own terms
and, thanks to the advancements of technology,
they are increasingly informed about and
influenced by what they will receive in return
for their loyalty.
The impact on the travel industry is clear:
brands have to reinvent how they engage
with customers or risk losing them in a highly
competitive and primarily online market.
In order to do keep their customers, loyalty
marketers need to better understand how
the evolution of the travel industry has
impacted the needs and wants of todays
traveller. This report uses detailed insights
from a global survey of 4,000 travellers
to examine:
How the travel and loyalty landscape
has changed
What the modern traveller looks like based
on behaviours and interests

The actions that travel companies need to


take to ensure they attract and retain the
loyalty of todays traveller
The results offer loyalty programme
managers a radical new approach. One that
will encourage redemption and increase
engagement to drive ROI in an environment
when competition and choice are available at
the click of a button.
Central to this approach are the The Grand
Wanderlusters. Six traveller personas
borne out of the research that define the
modern traveller; their values and beliefs,
communication preferences and more
crucially, how travel companies can engage
with them to encourage brand loyalty through
reward programmes.
The Grand Wanderluster report provides
invaluable insight into the desires of the
modern-day traveller. It sets out a blueprint
for travel reward programme managers to
understand how they must respond to an
ever-changing environment and evolve
continuously. If they dont, they risk losing
out to competitors on loyalty, ROI and the
value of long-term customers.

How satisfied travellers are with their


existing reward programmes
3

Then and now: the


transformation of travel
Travel is, by its very nature, always
on-the-move. Over the past few hundred
years, it has altered radically and the rate of
change has accelerated in recent years. Theres
been a shift away from the standard planned
and perhaps predictable trip to flexible and
spontaneous getaways.
To truly appreciate this change, we must first
take a step back in time: back to The Grand
Tour. A voyage which typifies the traveller
of yesterday: defined, specific and elitist.
The Grand Tour was a traditional trip through
Europe, taken by young aristocratic Europeans
between the years 1660 and 1840 who
were happy to follow a specific and distinct
travel routine.

#grandwanderlust

The story of global travel


Over the past 300 years, global travel has
evolved from maiden voyages, to the launch
of the traditional frequent flyer reward
programme, to click-of-a-button weekend
getaways. Below, we take a trip through the
travel industrys history to understand how the
prescriptive approach has evolved in the face
of technological and cultural changes

[1660-1840]

The Grand Tour ignites curiosity


Event: Aristocrats head out on voyages of discovery
across Europe

16001800

Impact: The trend of predictable and planned


vacations begins

18011900

[1840]

Thomas Cook kick-starts


the package holiday
Event: Thomas Cook organises a trip for 540 people,
earning commission on rail tickets
Impact: Travel agents cash in on planned holidays
for consumers

Did you know?


In 1845, Thomas Cook
arranged travel for 165,000
people without the aid of any
technology. Thats even before
the invention of the ball point
pen and the telephone.

[1844]

All aboard P&O


Event: P&O ferries launch passenger cruises
Impact: International travel becomes more
accessible to a wider audience

[1850]

Holiday in the snow


Event: The Alps open to tourists
Impact: Skiing holidays and other
activity-based trips are born
5

19011950
[1914]

First ever commercial flight


Event: Tony Jannus pilots the first commercial airline flight in the US with a paying passenger
Impact: Travellers can now get further, quicker, and the choice of destinations expands

[1950]

The post-war holiday boom


Event: World War II is over and travel feels safe again
Impact: Demand rockets, with some one million Britons
travelling abroad each year

19511980

[1960]

More than just a flight


Event: Collinson Group launches the International Airline Passengers
Association (IAPA)
Impact: Offering value add services insurance,
lost baggage service, hotel and car
rental discount programmes
becomes the new norm

[1979-81]

The first frequent-flyer


programmes (FFP)
Event: Texas International Airlines
and American Airlines offer
mileage-tracking to give rewards
to passengers
Impact: Travellers start to get
greater value the more they travel

#grandwanderlust

Did you know?


In the UK, city breaks have now overtaken beach
holidays as the most popular type of trip.

[1989]

The World
gets smaller
Tourism turns urban

Event: The Qantas Boeing


747-438 flys non-stop from
London to Sydney

Event: Investment in the culture of European cities


inspires increased urban tourism

Impact: Travel providers start


offering trips to every corner
of the globe

[1980-90]

Impact: The city break becomes hugely popular

19811990
[1990]

Package holidays become (very) popular


Event: Britons take 27 million holidays and 56% are package deals
Impact: Holidays become easy to access and even easier to plan

Event: Collinson Group launches the Priority Pass


for VIP airport lounge the first independent
airport VIP lounge programme in the world.
Impact: Premium becomes accessible to
more people

GE ACCE

SS

The era of the VIP

VIP LOUN

19912000

[1992]

[1999]

Consumers take control


Event: Columbus Direct is the first to sell
travel insurance entirely online, including
policy delivery
Impact: Demand for online accessibility grows

[2000]

Consumers
gain a voice
Event: Travel review site
Trip Advisor launches
Impact: Travellers
no longer rely on
travel agent guidance,
instead trusting their
peers' rating

20012010

Destination: the world


Review: the world is a
great place to visit
Rating:

[2008]

Airbnb launches

[2001]

Low-cost flights take off


Event: easyJet and Ryanair are Europes first low-cost airlines
Impact: A huge surge in the number of cheap, last-minute
airfares travel becomes spontaneous and affordable to many

[2007]

Online overtakes offline


Event: The majority of trips were purchased online for the first time

Event: The US company launches a completely


new business in peer-to-peer hospitality
Impact: Hotels across the globe are shaken by a
revolutionary new business model

#grandwanderlust

Impact: Travel booking moves from the high street to the web

[2010]

The rise of the DIY holiday


Event: More than half (54%) of UAE residents
book their own trips online
Impact: The consumer has more choice of hotels
and airlines differentiation is key

[2012]

China relaxes travel restrictions


Event: Travel agents are allowed to use
foreign global distribution systems to issue
international flights

20112014

Impact: Chinese tourism surges, with a vast


increase in diversity and value

[2014]

Web is the go-to


booking tool
Event: Online becomes the norm,
with 75% of US travellers now
booking trips on the web
Impact: Smartphones, tablets and
laptops are now the first stop for
travel booking

[2014]

APAC is mobile
Event: Smartphone usage booms
Impact: 38% of travellers in the APAC
region book hotels via a mobile device

The Grand
Wanderluster

2015

| The Grand Wanderluster |


Noun
[2014/5] An individual consumed by his or her desire to travel the
world, who is defined not by their age or gender but by their behaviour,
characteristics and interests. A Grand Wanderluster demands more from
travel companies than ever before and expects them to acknowledge
both their diverse interests and reward them for their business and
loyalty accordingly.

#Wanderlust was used on average


8,000 times per month in 2014
#Wanderlust was used 6,000 times
in 2013 and 92,000 times in 2014
68% of the authors were female
Top interests related to
#Wanderlust included Books, Food
& Drink, Music and Photography

*Twitter data provided by Brandwatch

10

#grandwanderlust

Getting to know the


Grand Wanderlusters
The rise of the Grand Wanderluster is
testament to the way the travel industry has
transformed.
The current accessibility and mass availability
of travel means that traditional demographicbased approaches to audience segmentation
are a thing of the past.
Grouping travellers into audience clusters
based on traditional characteristics such as age,
income, gender, is a sure fire way to alienate
todays customer.

For the Wanderluster generation its no


longer about age and income its now a
question of attitudes, lifestyle, behaviours
and expectations. Travel brands must take this
approach for their core products and services
and their reward programme.
We asked 4,000 people across the globe
a range of questions about their lifestyle
attitudes, behaviours, interests and routine
habits so we could get a better understanding
of how the Grand Wanderlusters have
impacted the travel industry and in
particular, the travel reward programme.

We analysed the data and found six different


Grand Wanderlusters; each defined by
their own diverse needs and expectations
of travel brands.
The traditional frequent traveller persona
has changed beyond recognition in fact,
there is no one set of characteristics to define
them. Our findings show that consumers
expect travel companies to understand their
needs and above all else, to reward them for
their loyalty.

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DUTY
FREE

11

Meet the Grand Wanderlusters

Most likely to fly and stay in hotels multiple


times a year, the Aspirationals are the reinvented frequent travellers making them
the core audience for airlines and hotels.
Always on the move, 48% admit they
couldnt live without their mobile.
They are highly ambitious in their
careers and have the pay cheques to
show for it. They are most likely to
travel for a business trip, though the
majority are searching for the perfect
work-life balance.

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THE ASPIRATIONALS
Who are they?
The Aspirationals are competitive, extroverted
individuals who have an all or nothing
mentality. As savvy consumers who dont take
things at face value, they rate peer reviews of
travel brands above all else.
12

#grandwanderlust

They spend their spare time listening


to music, dining out and sharing these
experiences with the people closest
to them. Thats why the one thing
Aspirationals want most from a reward
programme is the ability to add and share
their membership benefits with their nearest
and dearest.

What do they think about


reward programmes?
As active members, the Aspirationals
are generally satisfied with their travel
programmes. But while they may redeem
more regularly than others, they are always on
the lookout for programmes that offer them
more. They want rewards from the brands
own inventory, but expect some variation too.

When they sign up to a reward programme


they are determined to get the best possible
return on their investment: they want a
relationship with travel brands on their own
terms. They dont want to be bombarded
with communications that have nothing to do
with their preferences and want a redemption
experience that is fast and easy.

technology channels, for example, mobile.


Remember diversity is important to them too,
so offering them a variety of relevant rewards
will be important to earning their loyalty. They
are consumers who want to feel like they are
valued by brands so make sure that they dont
have to wait too long before they can redeem
their points.

Why are they important to you?


As the reinvented frequent flier, Aspirationals
are a crucial portion of your customer base
as they offer both short and long term
potential. They travel multiple times a year,
and more importantly they actively want
to engage with your programme. They like to
earn points and see little value in vouchers as
a reward. Aspirationals also place importance
on receiving rewards from a brands own
inventory and like to book direct, meaning
there are multiple ways of engaging with them
whilst also creating advocates for your brand.

58%

Points matter to them


they are the group most
likely to want to earn
them (58%)

97%

Reward programmes
are a deal-clincher 97%
are influenced by them

94%

They redeem online 94% redeem on PC,


tablet and mobile

How do you reach them?


To attract the Aspirationals, you need to
adopt a relevant and tailored approach to
communication. Of all the Wanderlusters,
Aspirationals were the most likely to say
they are contacted too frequently by travel
companies (18%) and you should communicate
with Aspirationals through up-to-date

13

Balancers are people who like to make


the connection between effort and
reward. They are quite easily pleased
as long as they feel they are being
properly appreciated.
As relatively extroverted
individuals, their interests are
broad and they like to spend their
spare time split between social
and individual activities. While
the majority of their travel is for
family vacations, they do also travel
for business.

What do they think about


reward programmes?

THE BALANCERS
Who are they?
A continual work-life juggler, the Balancer likes
to get the most for their money and effort.
For Balancers, work-life balance is a must. They
are ambitious and their careers are important
to them, but they rely on a structured routine
to ensure they spend time with their partner.

14

#grandwanderlust

Balancers like reward programmes and


dont have particularly negative associations
with them. But, because they like quid pro quo,
they are likely to spend more if they receive
more relevant offers.
They take a considered approach to what they
do and spend time assessing their options before
making decisions. They rely heavily on customer
reviews/recommendations when making a
travel purchase decision. Most Balancers told
us they dont hear very often from their reward
programmes which means they are less likely to
make an effort to participate.

Why are they important to you?


Balancers are important because they want
to be loyal. They are prepared to invest in a
relationship if they think their effort is going
to be rewarded. That means once they are
engaged with your programme, they are likely
to stay as long as you keep to your side of the
bargain. The long term potential of Balancers is
high, so while the return on investment might
not be immediate, over time they are likely to
become very profitable customers.

66%

Reward programmes
matter 66% of
Balancers are
influenced by them

44%

They like the


programmes they
participate in 44%
think they are great

85%

They like choice 85%


thought current travel
programmes could be
improved, at least to some
extent, by a greater choice
of rewards

How do you reach them?


With 57% preferring to redeem online,
making sure you give this option is crucial.
Their desire for choice means your programme
needs to go beyond just travel rewards;
offering a range of rewards that fit a variety
of needs/lifestyles. Most importantly,
Balancers want to feel appreciated for their
effort: regular, relevant communications will
encourage active engagement from Balancers.
Make Balancers feel their efforts will be
rewarded and theyll quickly become more
active participators.

15

Whilst extroverts at heart, their


commitment to family means that their
routine is somewhat predictable.
Relationships outside of work are
important to them in general, as
they do also value the bond with
their friends.
Regular holidays are a fantastic way
for Nesters to get the whole family
together, relax and create some
special memories. They are often
loyal to certain destinations, airlines
and hotels.

THE NESTERS
Who are they?
Nesters always put their family first, even
at the expense of their own time. They will
push themselves to be a success in their
career so they can provide a comfortable life
for their family.

16

#grandwanderlust

When Nesters are not on family


holidays, youll find them on
business trips abroad which can
mean additional flights and hotel
stays. They hate being away from
the family but, because they are tech-savvy
with smartphones and laptops, they always
keep in touch with loved ones no matter
where they are in the world.

What do they think about


reward programmes?
Nesters travel frequently and often have the
family at heart, so its quite apparent what type
of rewards theyd be interested in. Whilst not
having the time they used to for socialising with

friends, maybe a one off group getaway or trip


is a motivator to putting sometime aside for
catching up.
Nesters are definitely open to more
conversations with your brand and are
very comfortable redeeming online across
all devices.
As Nesters are already quite happy with
reward programmes and they fly and stay in
hotels more than average, they are definitely a
customer group worth investing more time in.

that to reach the Nesters, you should enhance


the regular family holiday with redemption
opportunities that offer a little luxury. As well
as family-focused rewards, mobile access is
important to the Nesters.

74%

They are digital 74%


redeem rewards through
pc/laptop or mobile

47%

They want to hear from


you more 47% dont get
regular communication

53%

Overall they are quite


satisfied 53% happy
with reward programmes

Why are they important to you?


Once Nesters are engaged, they tend not to
stray. This means that once you understand
their routines and motivations for earning and
redeeming points, you can easily tailor your
programme to these predictable behaviours.
As Nesters are cash rich, time poor and
potential high spenders, a points per pound
spent model could be very appealing.

How do you reach them?


Family may be everything, but Nesters are
also regular travellers, so they appreciate small
perks to make time away from the family easier.
They feel guilty spending so much time away, so
are attracted to longer-term rewards that they
can share and enjoy with the family. This means

17

They appreciate instant gratification


for effort and want to see results
quickly. As a result, they can often be
found seeking the next travel thrill,
surfing the internet for inspiration.
They also like to be pampered.
With their need for immediacy,
they are more likely to use their
smartphone to interact with
brands no fuss or browsing,
they just want to get it done now.
Thats why they like the instant
comparisons available through
aggregator sites.
DUTY
FREE

THE ON-DEMANDERS
Who are they?
The On-Demanders are career-orientated
individuals who dont particularly enjoy
routine and, as introverts, are more likely to
focus on their own individual needs than run
with the crowd.

18

#grandwanderlust

What do they think about


reward programmes?
On-Demanders want to feel inspired. They
value choice, and dont like pre-determined or
predictable rewards, so free gifts or limited
choice wont appeal. While they are least likely
to be inspired to spend more through offers,
they remain highly engaged with programmes
that offer choice and the flexibility for them
to personalise their experience. Image and
brand reputation is more important to the
On-Demanders than the rewards on offer
when choosing a travel provider.

Why are they important to you?


On-Demanders are important because they
travel relatively frequently and are likely
to be vocal if they are not happy. The short
to medium-term potential they present is
attractive and the long term potential is high.
Generating a good opinion of your brand with
On-Demanders could reap significant benefits.

How do you reach them?


Because On-Demanders like aggregator sites
more than 38% prefer this travel booking
method establishing direct relationships with
them can be a challenge.
Your programme needs to instantly inspire
them. Offering contemporary rewards, such
as digital downloads or luxury items from
brands with great reputations will appeal to
their on-demand nature and image-centric
view of the world.

36%

They are image


conscious 36% feel
brand name is a key
selection factor

24%

They recognise value


24% said it costs too
much to get rewards

85%

They want to be in
control 85% said travel
programmes would be
improved if they could
choose their own
reward categories

In order to engage On-Demanders long term,


you need to make the redemption process
as easy as possible and ensure content is
accessible cross-device whether using a
tablet or smartphone.
With a desire to shape their own destiny
in terms of the rewards available, there is
a great opportunity for two-way dialogue
and to appeal to their need for flexibility,
personalisation and to feel special.

19

Individualists tend to be uninterested


in the latest technologies, use PCs
only when needed and you wont
find them with an e-reader or the
latest smartphone.
Quite happy in their own world,
they dont travel often but do
indulge in weekends away.

What do they think?


Travel brands rarely target them,
and as a result, Individualists are
unlikely to see much value in reward
programmes. Along with online
customer reviews they are influenced
by rewards and if offered more choice
and availability, they would be much
more willing to engage.

THE INDIVIDUALISTS
Who are they?
Individualists tend to keep themselves
to themselves, breaking-up their routine
with a mix of music, books and TV. They
see themselves as introverted and noncompetitive, likely to be single or divorced
and ambition hasnt been a leading factor
in their lives.

20

#grandwanderlust

Quite sceptical and dissatisfied, Individualists


would be surprised by a programme that finally
understands them and offers more ways to
earn and redeem. If travel brands were to
realise their potential, and provide them with
relevant reward choices combined with more
frequent communication, they could become
life-long members.

Why are they important to you?


The Individualists live in their own world, so it
can be difficult to gain their trust. Once theyre
on-board, they can prove extremely profitable
for companies. Take the time to target them,
as they are heavily influenced by reward
programmes and will remain devoted to your
brand. But once they leave your programme,
theyre very unlikely to return.

How do you reach them?


Regular communication and reward variety
are crucial to attracting the Individualists.
So be sure to send them more personalised
communication to ensure they are positively
influenced and stay with your brand. You
should also provide them with a wider choice
of rewards that can be obtained even by a
relatively low frequency of interaction.

60%

They know hotels - 60%


stay in hotels an average
of three times a year

54%

Rewards matter to them


54% say they are the most
important factor when
choosing a travel provider

33%

They arent very happy


less than a third are
satisfied with their current
reward programme

21

JULY

Whats more, Safeguarders enjoy a


wider variety of activities than most
in their free time alongside the
occasional trip, such as taking a
weekend break to Rome or that
all-inclusive week in Mexico. They
also like to indulge in activities
closer to home: reading, listening
to music or just spending time
with the family.

What do they think about


reward programmes?

THE SAFEGUARDERS
Who are they?
Safeguarders are most comfortable in familiar
surroundings. With 41% unable to live without
a laptop or PC, they are happy using technology
but not completely immersed in it. Therefore,
while familiar with the latest technology, they
still prefer more direct methods of engagement
when booking a holiday.

22

#grandwanderlust

Whilst Safeguaders are not the


most frequent travellers, they do
enjoy going on family holidays
resulting in high points value
trips, so a point per spend reward
model could be considered.
Safeguarders, however, may not want to
redeem points on further travel rewards due
to their infrequent travel habits. Therefore,
they appreciate a wider ranger of rewards from
outside of the brands inventory to match their
active lifestyle.

Why are they important to you?


Safeguarders are of great potential to your
reward programme because when selecting

travel providers, rewards offered is one of the


most important factors. Because Safeguarders
are influenced by reward programmes in their
purchase decisions, offering a wide range of
rewards to match their more varied lifestyle will
help to drive greater engagement, loyalty and
revenue generation.

55%

They dont necessarily


want travel rewards
55% do not want to
receive products from
the brands own range

39%

They are open to


influence when
selecting a travel
provider, 39% look at
rewards offered and 35%
look at customer reviews

59%

They like the certainty of


direct relationships 59%
still choose to book with
airlines or hotels directly

How do you reach them?


Communicating with Safeguarders is an
opportunity that should be embraced, as
they actively want to talk directly with
your brand. Therefore making sure that
you maintain an open direct channel for
Safeguarders is essential to keep them
engaged. Dont overcomplicate the user
journey and risk losing their custom
unnecessarily.
Due to a variety of activities undertaken,
there is the opportunity to promote a wide
range of rewards that boost earning potential
- complementing their lifestyle. With increased
points and miles in the bank, that trip to Rome
or holiday to Mexico becomes all the more
tangible, so tempt the Safeguarders with
communications that help them to be inspired
to book their next trip.

23

How the Grand


Wanderlusters are changing
reward programmes
The Grand Wanderlusters have their individual
differences but they are all savvy in their own
way. Some shop around before committing to
a purchase and others are not afraid to switch
travel providers in search of a better deal.
The connecting thread is the ever-growing
need for travel brands to understand more
about what motivates their travellers. So
how do travel companies engage with this
discerning audience in the digital age?
The simple answer is by tapping into the
Grand Wanderlusters behaviours and
understanding what makes them brand loyal.
We know that consumers are influenced
by peer reviews, reward programmes and
brand reputation this is not news to us
but what our research has found is that reward
programmes are becoming increasingly
important in the purchase process; often
acting as the tipping point between choosing
your brand over the competition.

24

#grandwanderlust

According to the research, 74% of travellers


travel purchase decisions are influenced by
their reward programme. In effect, thats
around three-quarters of all your members
potentially choosing a competitor if your offer
is not up to scratch. Get rewards right and
you increase customer loyalty and improve
the bottom line. But fail to evolve to meet
the Grand Wanderlusters needs, and youre
likely to lose them.
Just as The Grand Tour no longer fits
the requirements of the modern traveller,
outdated reward programmes need to evolve
too. Brands need to recognise the importance
of tailoring reward programme offerings.
A reward programme that worked ten years
ago will not keep-up with the expectations
of todays mobile-first consumer choice
is everything. Grand Wanderlusters want
to redeem their rewards on products and
experiences that fit with their lifestyle. Its time
to examine how your reward and redemption
programme is constructed, managed and
communicated, and reinvent it for the
Grand Wanderlusters.

TRAVEL ANNOUNCEMENT!
67% of respondents are not fully satisfied with
their travel reward programme

74% of travellers travel purchase decisions are


influenced by their reward programme

86% of travel programme members want a


greater choice of rewards

82% of travellers want to choose which


categories of rewards they want

78% of travellers would like reward

programmes to be easier to understand

77% of travel reward programme members


want to proactively help shape their
programme

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How do reward programmes


need to change?

are already browsing travel online and


want their reward programme to be part of
that experience.

Give consumers more control

Clearly, for reward and loyalty programme


managers, a much more targeted approach
should be a core focus. Think about multiplatform access and the demand for online
for example: the explosion of personal devices,
such as smartphones and tablets, has led to
new consumer behaviours. This, of course,
affects the way consumers want and choose
to interact with brands. For example,
if half of your members prefer to
redeem on a mobile device
and your programme isnt
mobile compatible,
you are pushing your
members towards a
rival programme.

The Grand Wanderluster has - and expects greater choice and flexibility than ever before
when it comes to shopping for hotels and
flights. With a multiplicity of channels and
opportunities to interact with brands, travel
companies need to be smarter than ever
when it comes to engaging with
their customers.
We know from our
research that travel
brands are failing
to keep pace
with todays
on-demand
consumer.
Indeed, 74%
believe their
programme
would be
better if they
could access
rewards online.
This is probably
because consumers
26

#grandwanderlust

Connectivity is a
very important point.
Aspirationals and OnDemanders simply
wont engage with your
programme unless they
can access it how they
want. Over half (57%) of
Balancers prefer to redeem

Redemption
preference

80
70
60

Mobile

50

Laptop

40

Tablet

30

Traditional
(phone and
in-store)

20
10
0
16-24

25-34

35-44

45-54

55-64

65+

online and even many of the Safeguarders are


looking for online redemption options.

and the more effective you can be in your


communications moving forward.

Lower the barrier for redemption

Considering that the majority of travel


companies cannot recognise revenue for
unredeemed reward points, its imperative
that as many customers convert as possible,
and as quickly as possible. Collinson Group
research shows that once members start
to redeem, they can be 5 to 7 times more
profitable to your business than those who
dont. Ultimately, this is a sure-fire way to
improve the ROI of reward programmes.

Each Wanderluster has a different level of


attainable spend. The key is to ensure that all
are presented with an accessible and relevant
range of rewards thats the right products, at
the right price, at the right time. The sooner the
first transaction takes place and the member
becomes engaged in your programme, the
more likely they are to spend again. The more
active this relationship becomes, the more
you can learn about that individual member

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Remember, too, that its not always


about frequency of travel. Family
holidays and signature trips might
only happen occasionally, but can be
very lucrative for travel providers. The
less-travelled Individualists need more
incentive to travel in their leisure time,
while Balancers would welcome the
opportunity to supplement points with
cash for higher rewards. Giving them
the option could get them on board
with your brand for the longer term.

CHOICE

Deliver more flexible


options and choice
Our research shows that nearly
nine in ten (86%) travel programme
members think a greater choice
of rewards would improve their
programme. In short, the more value
a programme member perceives
from their travel provider, the more
likely they are to remain engaged.
This, above all, will leverage the best
returns from cost efficiencies. At the
same time, 34% of travellers would
like rewards that are not part of
the brands own range, so variety
is the key.

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#grandwanderlust

FLEXIBILITY

ENGAGEMENT

The internet and mobile technology


revolution has undoubtedly driven
this shift towards consumer choice
and control, and travel providers
must embrace this flexibility. Grand
Wanderlusters will, for example,
respond well to gifting options, peer
reviews, forums and joint-points
accounts for families. Specifically,
On-Demanders will become strong
online advocates for your reward
programme if they like your approach.
And of course, online advocates
attract new members and improve
brand perception.
This variety is further catalysed by
the rise of social media, which is
encouraging a right-here-right-now
attitude. If brands fail to segment and
profile their customers in a way which
factors-in their online and mobile
behaviour, they wont garner their
attention. The programme of ten
years ago simply wont work for the
Grand Wanderluster.

Make reward programmes


easier to use and understand
Nearly two-thirds of the Grand Wanderlusters
(64%) dont find the programmes very easy
to understand, 63% dont think they are very
easy to use and 69% tell us they are not really
impressed with the service they receive.
The importance of this cannot be
underestimated. The benchmark should be
leading e-commerce sites for whom efficient
purchases, measured by conversion of visitors
to buyers is everything. We know that the
Safeguarders prefer direct conversations,
while the Aspirationals demand state-of-theart interactions, so again, programmes must
be flexible to cater for everybody.
Fail to do so, and the fall-out could
be serious.

At the moment, many reward programme


members fail to redeem their points against an
offer. This may be because they do not know
enough about the rewards on offer, because
they feel their dream reward is too far out of
reach, or simply because they dont know how
to redeem. Currently, an estimated 33% of
the $48 billion annual reward points earned
in the US each year go unused, according to
Colloquy. Thats a considerable amount of tiedup revenue.

33%
OF THE
$48 BILLION
annual reward
points earned in the US
each year go unused,
according to
Colloquy

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Communicate more effectively

Travel companies need to realise that in the


digital age communication is no longer just
about content; its about delivering the right
content on the right channel, at the right time
for each customer. In order to communicate
more effectively with Grand Wanderlusters,
travel brands need to use the characteristics
(outlined in this report) paired with their
knowledge of their brand to identify;

Communicating with Grand Wanderlusters


in a relevant and personalised way is the key
to securing maximum value from your reward
programme. We know Grand Wanderlusters
are defined by unique characteristics and
behaviours that guide their purchase decision,
so its more important than ever that travel
brands tailor their communications approach
in line with these.

How often each Wanderluster wants


to be communicated with

In a world where the consumer shapes the


brand more than ever before and two-way
dialogue is the norm, the fact that 77% of
travel reward programme members want to
proactively help shape their programme by
engaging directly with your brand is a huge,
huge opportunity waiting to be tapped.

On which channel they want to be


communicated with and
Which messages/rewards will encourage
them to earn and/or redeem.

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#grandwanderlust

Key takeaways: the evolution


of your rewards programme
The Grand Wanderlusters are here, and
they expect a very different kind of reward
programme. In fact, they dont expect just one,
but rather many programmes that are tailored
to their varying wants, needs and desires.
So for any travel brand to succeed, they must
respond to the changing environment and
evolve continuously to be more in tune with
the Grand Wanderlusters. Listen to what they
are saying, and give them exactly what they
want and expect.
It is vital to see this not as a challenge, but as
an exciting opportunity for travel programmes
to reinvent themselves. Theres no doubt that
Grand Wanderlusters like rewards and their
spending is influenced by them they just
want them on their own terms. After all, this is
a consumer-centric world, and people expect
to be in control. Theres no single solution,
but there are strategies that will help ensure
reward programmes truly appeal to the
modern traveller:

Use the six different Grand Wanderlusters


as building blocks to devise targeted travel
reward programmes
Dont just categorise your members by
age and income. Instead, look at interests,
behaviours and emotions
Create reward programmes that provide a
seamless and positive customer experience
in line with your overall brand proposition
Communication should be a two way
street. Listen to what your members
want and deliver tailored communications
accordingly

Perhaps most importantly though, the time to


act is now. Two in three programme members
are not currently satisfied with their travel
reward programme. Thats the bad news, but
the good news is that you know exactly what
to do to turn things around. People love
rewards, and its simply a matter of ensuring
that what you offer is perfectly suited to the
needs of the Grand Wanderluster.

31

Join the debate

For more information

Do you recognise the


Wanderlusters in your
reward programme?

Like to discuss the report with one


of our team or request a hard copy
version for you and your colleagues?

@c_latitude #grandwanderlust

[email protected]

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BU

SIN

SIN

ES

LA
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SC

LA
SS

LOYA

DUTY
FREE

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#grandwanderlust

About Collinson Latitude


At Collinson Latitude, we unlock the value of your customer relationships by blending a unique
combination of e-commerce expertise, content delivery and technology solutions.
You will benefit from increased customer engagement which drives increased revenue.
Your customers will benefit from access to a wider choice of products and services.
Our track-record shows that we build successful long-term partnerships with our clients, who
include many leading global brands. These relationships are founded on strong, mutually beneficial
performance-based commercial modelling that drives both financial targets and engagement levels.

What we do
Collinson Latitude drives daily engagement through multiple customer touch-points with your
programme. We optimise value by structuring commercial models that are aligned to your objectives.
We recommend the best content strategy and support the design and delivery of tailored marketing
communications to drive high performance through effective interaction.

Contact Us
For more information about Collinson Latitude and/or High Performance Reward Programmes,
please contact us on:

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This article was brought to you by Collinson Latitude.


All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any manner, electronic or
mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from
the publisher.
Copyright Collinson Latitude Ltd 2015

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#grandwanderlust

#grandwanderlust

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www.collinsonlatitude.com

[email protected]

@C_Latitude

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