The tourism industry loyalty programs market is estimated at USD 24.6 billion in 2023. The market is projected to surpass USD 58.2 billion by 2033, at a CAGR of 9% from 2023 to 2033.
Drivers in the Tourism Industry Loyalty Programs Industry:
Challenges for Companies in the Tourism Industry Loyalty Programs Industry:
Investment Opportunities in the Tourism Industry Loyalty Programs Industry:
Latest Trends in the Tourism Industry Loyalty Programs Industry:
| Attribute | Details |
|---|---|
| Tourism Industry Loyalty Programs Market Estimated Size (2023) | USD 24.6 billion |
| Tourism Industry Loyalty Programs Market Projected Size (2033) | USD 58.2 billion |
| Tourism Industry Loyalty Programs Value-based CAGR (2023 to 2033) | 9% |
| Tourism Industry Loyalty Programs Market Top players market share | ~5% to 6 % |
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Since it costs more for a firm to sell to a new client than to an existing one, loyal consumers are one of the main drivers of any business. Loyalty programs are incentives companies offer customers who make repeated purchases.
Loyalty programs have developed in the travel industry to improve the value of customers' travel experiences.
The travel industry is always improving its reward system and loyalty programs. With a growing number of new competitors entering each of its businesses, the tourist industry has become extremely competitive.
The benefits that customers receive in the form of awards increase with membership level. Both the number of first-time travelers and the frequency of repeat visitors have grown due to these activities.
The key trends driving the loyalty program in the travel industry in global companies are influencing digital transformation in recent years. The digitalization has attracted more tourists because it has become hassle free (they do not have to carry the loyalty card around anymore).
Also, it is easier to claim loyalty rewards by just entering one's email id or phone number on the tour company's website. It is seen that it is easier to avail of loyalty programs digitally.
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The personalization of loyalty rewards attracts more consumers because the company puts more effort into programs. Personalized emails/ offers are helping tour companies because the customers stick with them for a very long period. Personalization of loyalty programs includes discounts, mystery gifts, different tours according to the consumer's preferences, etc.
The Asia Pacific countries have contributed to the strong market growth of this industry
The Asia Pacific countries have contributed 33.5% to the market growth of the loyalty program in the travel industry. Loyalty and incentive programs are expanding their market share in Asia Pacific.
The region's robust market growth was primarily driven by the region's vast population, fast digitalization, and customer preference for rewards programs. Loyalty and rewards programs have become very popular in Asia Pacific countries as internet buying has become increasingly popular over the past ten years.
This trend is anticipated to continue as national and international brands look for ways to differentiate their strategies through loyalty and rewards programs.
The customization and personalization provided by the companies are helping to expand the market
The European region has contributed 29% to the global loyalty program in the travel industry sector. Demand changes, an inability to manage qualitative development and supply expansion, and individualized and erratic consumer behavior, have forced many organizations to create strong competitive advantages over their rivals.
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Tiered program is the most popular loyalty program in the travel industry
There are different loyalty program types in the travel industry, including point programs, tiered programs, value-based programs, omni-channel loyalty programs, paid programs, others, etc. The most popular among these programs is the tiered program.
Since they often let consumers earn points for their purchases, tiered programs are comparable to point schemes. Various benefits, such as gifts, discounts, early access to new items, and unique product voting privileges, are available to customers based on their tier.
No matter how frequently a consumer chooses to make purchases using tiers in incentive programs guarantees that customers receive genuine value.
Tourists Prefer to Make Online Bookings
Different booking channels can be used by consumers, like online bookings, in-person bookings, and phone bookings. The most preferred channel among tourists is online booking.
This is because, in recent years, the use of loyalty cards has lessened. There is more use of loyalty points which one can redeem by putting the email id or phone number on the particular tour company's website.
Package traveler is the most popular tour type of loyalty program in the travel industry
Tourists prefer the loyalty program when the tour type is package traveler. This is because when one selects to go on a package traveler, it mostly includes exploring all the popular places of that region, cuisine, most preferred activity of that place, etc., which can be very heavy on the pocket. So, through loyalty programs available in the travel industry, loyal customers can avail the costs of the tour lesson.
The leading businesses in the loyalty program in the travel industry are focusing on updating their offerings by introducing sales, new tour destinations, and package deals to get a competitive edge in the market.
The tourism industry loyalty programs market is highly competitive, with several key players driving innovation and customer engagement. These industry leaders are at the forefront of developing and implementing loyalty program solutions that enhance customer satisfaction and retention.
Industry players face various challenges in this competitive landscape. The market competition is intense, requiring companies to differentiate themselves and stand out from competitors.
Adapting to evolving customer expectations and preferences is another significant challenge. Companies must continuously update their loyalty programs to meet changing demands and leverage emerging trends and technologies.
Data security and privacy are critical concerns for loyalty program providers. With the collection and handling of sensitive customer data, ensuring data security and complying with privacy regulations are paramount. Companies invest in robust safeguards and systems to protect customer information and maintain trust.
For new entrants, the market offers investment opportunities in technology-driven solutions. Investing in advanced technologies like artificial intelligence and data analytics can enable new players to develop innovative loyalty program solutions that deliver personalized experiences to customers.
Partnerships and collaborations are also avenues for new entrants to consider. By forming strategic alliances with airlines, hotels, travel agencies, and other industry stakeholders, new players can gain access to a broader customer base and enhance the value proposition of their loyalty programs.
The market is witnessing several trends that shape the future of loyalty programs in the tourism industry. Personalization and customization have become paramount, with customers expecting tailored offers and experiences.
Loyalty programs are adopting a mobile-first approach, optimizing their platforms and features for seamless experiences on mobile devices. Furthermore, there is a growing trend towards experiential rewards, offering customers unique travel experiences and exclusive access to events and activities.
For instance:
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD billion for Value |
| Key Region Covered | North America; Latin America; Europe; South Asia; East Asia; Oceania; MEA |
| Key Countries Covered | United States, Canada, Mexico, Brazil, Peru, Chile, Germany, United Kingdom, France, Spain, Italy, Nordic countries, Belgium, Netherlands, Poland, Russia, Luxembourg, India, Thailand, Indonesia, Malaysia, China, Japan, South Korea, Australia, New Zealand, GCC, Southern Africa, and North Africa |
| Key Segments Covered | Program Type, Booking Channel, Tourist Type, Tour Type, Customer Orientation, Age Group, and Region. |
| Key Companies Profiled | Thompson Hotels; Hotel Tonight; The Hertz Corporation; National Car Rental; Travelex Limited ABN; Zinrelo; Flight Centre; Delta airlines; Virgin Experience Days; The Drake; The Savoy; Wonderful Union; Others |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
In 2023, the market is expected to be worth USD 24.6 billion.
Europe has made up 29% of the global market.
The market is expected to expand at a 9% CAGR until 2033.
Asia Pacific is responsible for 33.5% of market growth.
The market is expected to be around USD 58.2 billion by 2033.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Program Type 5.1. Point Programs 5.2. Tiered Programs 5.3. Value-based Programs 5.4. Others 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Booking Channel 6.1. Phone Booking 6.2. Online Booking 6.3. In-Person Booking 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Accessibility 7.1. Card Based 7.2. Digital Based Access 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Tourist Type 8.1. Domestic 8.2. International 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Tour Type 9.1. Independent Traveler 9.2. Package Traveler 9.3. Tour Group 10. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Consumer Orientation 10.1. Men 10.2. Women 11. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Age Group 11.1. 15 to 25 Years 11.2. 26 to 35 Years 11.3. 36 to 45 Years 11.4. 46 to 55 Years 11.5. 66 to 75 Years 12. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 12.1. North America 12.2. Latin America 12.3. Western Europe 12.4. Eastern Europe 12.5. South Asia and Pacific 12.6. East Asia 12.7. Middle East and Africa 13. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 17. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 18. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 19. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 20. Key Countries Market Analysis 21. Market Structure Analysis 21.1. Competition Dashboard 21.2. Competition Benchmarking 21.3. Market Share Analysis of Top Players 21.3.1. By Regional 21.3.2. By Program Type 21.3.3. By Booking Channel 21.3.4. By Accessibility 21.3.5. By Tourist Type 21.3.6. By Tour Type 21.3.7. By Consumer Orientation 21.3.8. By Age Group 22. Competition Analysis 22.1. Thompson Hotels 22.2. Hotel Tonight 22.3. The Hertz Corporation 22.4. National Car Rental 22.5. Travelex Limited ABN 22.6. Zinrelo 22.7. Flight Centre 22.8. Delta Airlines 22.9. Virgin Experience Days 22.10. The Drake 22.11. The Savoy 22.12. Wonderful Union 23. Assumptions & Acronyms Used 24. Research Methodology
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Tourism Industry Loyalty Programs Market
