BackUnlocking loyalty starts by offering rewards that resonate. Today’s customers expect more than discounts in exchange for their business — they’re drawn to experiences that inspire. That’s why 95% of loyalty programs include travel rewards. These incentives help foster stronger emotional connections, enhancing customer engagement and driving meaningful brand relationships.
For retail brands, strategic travel loyalty program partnerships are the key to turning wanderlust into lasting connections. By aligning with consumers’ aspirations for memorable experiences, brands can offer unique rewards that power long-term retention. Discover how these partnerships can transform your loyalty program and elevate retail customer engagement to new heights.
Why Do Travel Rewards Resonate with Modern Consumers?
A recent arrivia consumer survey discovered why the vast majority of loyalty programs offer travel rewards: they’re a universal motivator. Consumers are always looking for ways to reduce travel costs, including redeeming points to lower trip expenses (46%), booking discounted travel through their program’s booking portal (31%), and securing discounts with travel providers (29%).
Across demographics, travel rewards are an integral tool for delivering value to members. The benefits of travel rewards make bucket-list trips, dream family vacations, and even spur-of-the-moment adventures more accessible to modern consumers. That’s why strategic travel loyalty program partnerships play a fundamental role in enhancing customer engagement and loyalty.
Consider the successful partnership between Starbucks Rewards and Delta SkyMiles. Starbucks Rewards already has 34.3 million active U.S. members, with membership growing 13% each year. However, the retail brand uses its Deep Brew AI-powered data analytics platform to identify relevant shopping incentives, and a travel-based partnership with Delta SkyMiles is one of them.
“Starbucks Rewards and Delta SkyMiles are centered on creating moments of meaningful connection, and by bringing together two of the country’s most celebrated loyalty programs, we are able to reward our members with more of what they love,” said Ryan Butz, Vice President, Loyalty Strategy and Marketing at Starbucks. The focus is, “more moments and interactions that matter.”
What Are the Benefits of Partnering with Travel Brands?
Travel loyalty program partnerships have several benefits, the primary being cost-effective access to exclusive rewards. By partnering with a travel brand, your retail business opens the door to a collection of travel services — such as discounted flights, upgraded hotel rooms, or complementary experiences — that enhance your brand image without requiring you to fund them yourself.
Linking these experiences to your brand is the key to enhancing customer engagement. “A loyalty program with an attractive portfolio of travel rewards has the flexibility to engage and reward members in various ways and offers excellent customer support, which can be a critical tool for maximizing customer lifetime value (CLV),” explains Jeff Zotara, Chief Marketing Officer at arrivia.
Not to mention, the benefits of travel rewards spill over into program profitability and retail sales. Beyond driving ongoing engagement and boosting ultimate CLV, more than half of brand leaders with strategic partnerships (54%) report that partnerships are responsible for over 20% of their total company revenue, and 69% see additional sales potential through partnership programs.
Steps to Integrate Travel Rewards into Retail Loyalty Programs
From boutiques and department stores to supermarkets and convenience stores, most retail brands have built a loyalty program to reward and retain customers. However, most lack the travel loyalty program partnerships to achieve those goals. That begs the question, how can retailers form effective travel partnerships? Consider these steps for a profitable travel partnership strategy.
1. Identify Suitable Travel Industry Partners
To build effective travel loyalty program partnerships, start by identifying partners whose offerings align with your customers’ preferences. Collaborate with airlines, hotels, or tour providers that share your brand values and target similar audiences, like business professionals or family travelers. Look for partners with a track record of memorable experiences and customer satisfaction.
2. Integrate the Proper Technologies
Once you acquire a partner, invest in technologies like customer relationship (CRM) platforms to segment members and deliver personalized loyalty incentives properly. You can also join the 56% of leaders who work with third-party management software to maintain partnerships. Arrivia offers end-to-end travel and rewards technology that’s ready to integrate with your existing tech stack.
3. Implement a Realistic Redemption Process
“According to our survey, 21% of consumers of loyalty programs with travel rewards are frustrated by difficult or complex processes to earn and redeem points or miles, while just 14% of brands think this is what consumers find most frustrating,” explains Zotara. “Fortunately, loyalty program technology focusing on travel rewards and booking capabilities can help close this expectation gap.”
With arrivia, you can support your travel partnership strategy with a simplified redemption process for users and program partners. Arrivia offers a flexible loyalty currency that’s redeemable across all travel products, so you don’t have to pick between your existing earning and redeeming structure or ours. Plus, members can redeem rewards directly through our white label travel portal.
4. Introduce the Program to Customers
Introducing new travel rewards to loyalty program members is crucial for generating excitement and enhancing customer engagement. Clear communication ensures members understand the value of the rewards and motivates them to take advantage of the new program. Highlight how these rewards enhance their experience to foster stronger emotional connections with your brand:
- Announce rewards via email campaigns with bold, inspirational visuals.
- Use social media to showcase customer success stories or travel opportunities.
- Feature rewards prominently in loyalty program dashboards and app notifications.
- Offer an exclusive launch promotion or limited-time bonus to spark immediate interest.
How Can Retailers Form Effective Travel Partnerships?
Forming effective travel loyalty program partnerships starts with choosing collaborators that align with your brand’s values and audience. Look for partners who can deliver exceptional travel experiences that resonate with your customers. Clear communication, shared goals, and a focus on providing value are essential to creating partnerships that drive loyalty and engagement.
Additionally, you can ramp up the effectiveness of your partnership with these loyalty program trends:
- Leverage co-branded loyalty rewards. Co-branded loyalty rewards are a win-win, offering customers exclusive benefits while boosting visibility for both brands. By advertising to a shared audience, these partnerships expand reach, create stronger brand awareness, and attract new customers who value the combined offerings.
- Use data to inform personalized loyalty incentives. Travel-related offerings work best when tailored to your audience’s preferences. Analyze customer behavior and purchase history to curate meaningful rewards, such as destination-specific discounts or experiences that align with their travel goals, for a more engaging loyalty program.
- Opt for tiered loyalty incentives. Tiered loyalty programs are excellent customer retention strategies, motivating customers to reach higher levels for premium rewards. Travel-based tiers, like exclusive hotel upgrades or airline lounge access, can make customers feel valued while encouraging continued engagement and spending.
Explore arrivia’s Innovative Solutions for Retail-Travel Collaborations
Take the guesswork out of effective travel loyalty program partnerships with arrivia. Arrivia powers some of the biggest names in retail, hospitality, and finance with our white label travel and loyalty technology. Simply customize our white label travel portal with your company branding and begin to offer a global portfolio of travel services with a highly flexible, customer-preferred currency.
Learn more about arrivia’s loyalty solutions to begin integrating travel into your retail strategy today.
