Skift Take
Attitudes about remote work and the requirement for organization travel have actually fundamentally altered given that prior to the pandemic. iSeatz’s new “State of Loyalty: 2022 Charge Card Rewards Report” charts how market leaders can fulfill brand-new customer expectations around rewards, offers, and advantages.
iSeatz
Despite speeding up inflation, customer spending is rebounding across all travel categories, though it’s not simply a go back to the status quo. 2 years getting used to pandemic lockdowns and restrictions triggered a basic, and most likely irreversible, reorientation of customer expectations, particularly with regard to remote work and the requirement for service travel.
To help market leaders understand how credit card issuers are delivering against these expectations, iSeatz’s report benchmarks travel and lifestyle reward redemption opportunities and details the key patterns at the heart of flexible and varied engagement techniques.
“Travel continues to be a popular reward for credit card commitment members, now more than ever,” said Kenneth Purcell, CEO and creator at iSeatz. “But as we have actually seen from the previous 2 years, it’s crucial to be able to engage consumers with both aspirational and practical benefits. There are numerous brand-new, innovative reward items that issuers can include into their redemption portfolios that will satisfy changing consumer habits while still providing the inspiration and engagement that many cardholders value most from their benefit programs.”
Amongst the U.S. travelers surveyed in Skift Research’s recently released report, “Sustainability and Remote Work Shaping the Future of Travel: A Customer Perspective,” the portion of those expecting to “travel less for work when the pandemic is over” was greater than the percentage of those anticipating to take a trip more. Travelers in the younger age bracket (18-24) are the most likely to think that company travel will contract post-Covid, with 47 percent expecting to take a trip less compared to 15 percent anticipating to take a trip more.
As demand for leisure travel increases and traditional business travel declines, charge card benefits programs are moving appropriately. Credit card providers are broadening the ways consumers can earn points and benefits for lifestyle products, though there’s still space for growth– and chance– when it concerns redemption for the very same items.
Company tourists who as soon as used points for upgrades and lounge access are now traveling with their households and working from another location for longer spans of time, blurring the lines between organization and leisure travel. Today’s consumer is gravitating toward cards with flexible, more customized deals that offer discounts on holiday leasings and way of life items like grocery shipment, gas, and media streaming services.
“Commitment members who redeem rewards are more engaged and most likely to increase their lifetime worth,” Purcell said. “Getting them engaged early with smaller, more achievable benefits, in addition to motivating them to conserve for bigger travel redemptions, offers long-lasting advantages to the provider.”
In this report, you’ll likewise find:
- An in-depth contrast of travel and way of life benefit redemption opportunities from major credit card providers
- A summary of the state of the Buy Now Pay Later market, consisting of expected growth, significant players, consumer groups and companies driving the pattern, and the methods of leading credit card companies
- 3 reasons why pay with points is a win-win for both providers and consumers
- An analysis of how emerging trends such as digital wallets and cryptocurrency benefits are progressing to meet the requirements of today’s customer
- Guidance on future-proofing travel and lifestyle benefit strategies
This material was developed collaboratively by iSeatz and Skift’s top quality material studio, SkiftX.