Loyalty to airlines and hotel chains is slipping, study says

Posted Wednesday, Jan. 30, 2013 0 comments  Print Reprints
A

Have more to add? News tip? Tell us

There's a notable scene in the 2009 film Up in the Air when George Clooney's character, Ryan Bingham, becomes obsessed with amassing 10 million frequent-flier miles. When Bingham makes his milestone flight, he receives a champagne party and congratulations from the airline's chief pilot.

Real-life passengers have racked up more than 10 million miles on United and American Airlines, but all that might be changing.

A new study finds that consumer loyalty to particular airlines and hotels is plunging and that companies need to up their game if they want to keep members interested. Just 8 percent of consumers said they were always loyal to the same hotel brand, and 14 percent said they were always loyal to the same airline.

Loyalty programs that promise miles and points to be exchanged for free flights or free hotel stays rank low when consumers make decisions about what airline to fly and what hotel to stay in. Value for the money far outweighs other factors.

But that doesn't mean travelers don't like the programs. More than half expressed satisfaction with their hotel or airline program. So what's the disconnect?

Deloitte, which issued the survey, suggests consumers don't seem to be as obsessed with premium upgrades as they once were. The survey found domestic travelers said they flew in economy 65 percent of the time for business and 79 percent of the time for vacation travel.

"... [T]ravel brands should focus on enhancing the customer experience, making rewards personally meaningful, encouraging loyalty with unexpected rewards," Adam Weissenberg, vice chairman of Deloitte LLP, said in a statement.

The Deloitte-funded survey also found that social media and smartphones haven't affected the way people book travel. Sixty-three percent said they never want to interact with a travel brand on social media and 44 percent said they never visited social media and review sites. Most respondents said they made reservations at hotel websites (61 percent) and airline websites (59 percent) rather than using mobile apps or other online travel sites.

Looking for comments?

We welcome your comments on this story, but please be civil. Do not use profanity, hate speech, threats, personal abuse, images, internet links or any device to draw undue attention. Comments deemed inappropriate will be removed and repeated abusers will be banned. NOTE: If you log in using your Twitter account, your comments will be signed using the name on your Twitter profile, NOT your Twitter user name. Read our full comment policy.