Loyalty

nkralev on March 18th, 2010

Is there an inherent conflict between the desires of loyal customers and a travel company’s interests? For years, executives have been acting as if there is, despite of what they might say in public. One of them, however, has actually shown that what’s good for travelers doesn’t have to be bad for business.

Graham Atkinson has been president of United Airlines’ frequent-flier program, Mileage Plus, for only 16 months, but while some questionable policies remain in place, he has made a big difference for the better. His approach is not simply to please the carrier’s best customers — it’s to listen to them carefully and find ways to benefit the company at the same time.

Mr. Atkinson, who is also United’s executive vice president and was previously chief customer officer, hasn’t sought much credit for his achievements…

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nkralev on March 18th, 2010

Are airlines and hotel companies trying to benefit from charity donations to Haiti? When you donate miles or points, how do they decide into how many dollars your contribution converts? Should they be more generous than they are?

Every major U.S. carrier and hotel chain is offering the members of its loyalty program to redeem points in support of earthquake relief operations in Haiti, which was almost totally devastated earlier this month. For many Americans who may be short on cash but have thousands of points in various accounts, that is a rather attractive option.

Most airlines transfer the miles you redeem directly to the Red Cross or other organizations, which use them to book “award” tickets for their employees or disaster victims. Of course, those charities need either dedicated personnel or a travel agent to spend significant time working with the airlines to find the ever-so-elusive “award” availability…

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nkralev on March 18th, 2010

What makes a hotel loyalty program most competitive? Is it the elite benefits it grants its best customers or the variety of options it offers for redeeming earned points? Does it matter who’s asking: a program executive or a traveler?

It turns out, it does. As a customer, if I decide to be loyal to a hotel chain, the first thing I do is look up the requirements for achieving top elite status, and then the benefits that status would give me. Only after that do I consider the value of the program’s points.

However, Steven S. Sickel, senior vice president for distribution and relationship marketing at the InterContinental Hotels Group, who oversees the chain’s loyalty scheme, Priority Club, has a different perspective. The group also includes the Holiday Inn, Crown Plaza and Staybridge Suites brands…

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nkralev on March 18th, 2010

If you thought complaints about a policy of your preferred airline would fall on deaf ears, last week proved you wrong. As travel companies struggle to survive the economic crisis, they are increasingly listening to their most loyal customers.

As I reported in this column, United Airlines announced last month that it soon would end advance domestic upgrades, which could be confirmed using electronic certificates top elite travelers get if they fly at least 10,000 miles per quarter.

Though United tried to mask that huge loss for its best customers with the promise of automatic “free upgrades” if space in first or business class is still available a couple of days before a flight, the outcry against the new policy was overwhelming…

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nkralev on March 17th, 2010

Do you still find having top elite hotel status worthwhile? Are you worried that cost-cutting might take away some of the benefits that make you stay loyal to your preferred chain?

The management of those loyalty programs desperately wants you to believe that, despite the hard times in the travel industry, the perks you’ve become used to aren’t going away. After all, the last thing they want in this difficult economic environment is to lose their best customers.

As if they needed a reminder of the dire business climate, the latest figures for the week that ended Aug. 22 showed that U.S. hotel occupancy fell more than 7 percent to about 60 percent compared to the same period last year. The hardest hit are the luxury brands, where occupancy dropped by about 14 percent during the past year through July, according to Smith Travel Research, a hotel data company…

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