Conventional travel loyalty programs have long been a subject of debate and criticism.
Consumers are routinely frustrated with complex rules regarding earning and burning of points, limitations on portability and interoperability, and – especially with travel limited by the pandemic – concerns about the expiration of points.
Meanwhile, for travel brands, loyalty programs can be expensive to operate and attractive targets for hackers.
And to complicate matters further, whether these programs actually turn consumers into loyal customers – those who will choose their brand over others over and over again.
According to the Phocuswright report, Loyalty programs revisited: key parameters and impact of COVID-19, as of March 2021, 89% of travelers belong to at least one travel loyalty program.
Subscribe to our newsletter below
According to the report, “The pandemic has opened a window for travelers to consider new brands. In turn, brands have the opportunity to gain new customers and start to carve out their path to loyalty. Overall, one in three travelers agree that they are more willing to try new travel brands now, and business travelers are particularly keen to experiment. Half of business travelers agree they are now more open to trying new travel brands due to the pandemic. “
As brands re-evaluate their loyalty programs, could blockchain-based tokens become the new and better form of loyalty currency?
Mark McLaughlin thinks so.
McLaughlin is Founder and CEO of Coras, a platform that allows brands such as Ryanair and Rakuten to sell tickets to attractions and events, and now it is also developing a loyalty token known as Fida.
Its goal is to use this token to demonstrate to brands in the travel industry and other areas of e-commerce that a decentralized finance (DeFi) -based loyalty program can solve the problems of portability, interoperability, d ‘expiration and security – and in the process make consumers much more loyal.
McLaughlin joined PhocusWire’s Mitra Sorrells at our latest online event PhocusWire Pulse: Emerging Innovation to discuss how token-based loyalty will work.
PhocusWire Pulse: Emerging Innovation – Loyalty enters a new phase