Building loyalty among business travellers - what a programme!

By dint of posing as travel revolutionaries, the new entrantslikeAirbnb or Uber, have raised expectations that are sometimes difficult to meet. Visit "disruptive is it a concept that can be adapted ad infinitum? Not for sure... As proof, these inventive players are still groping their way in the field of customer loyalty. Uber, for example, waited ten years before launching Uber Rewards, which is very similar to the good old-fashioned loyalty programmes put in place by the traditional players a long time ago.

Even today, the cautious extension of this programme is still well below the cruising speed at which the giant of the VTC was initially scheduled for 2019, the French version has been a long time coming. Interviewed at the end of 2018, Franck Monsaurethead of Uber for Business in France, urged patience. "Subjects relating to subscriptions and loyalty programmes are not new. Other sectors have introduced them, other mobility players have integrated them. But we need to put things into perspective in relation to the youth of our company, which is not even ten years old"he explained. We will have to wait until 2020 to see Uber Rewards arrives on the French market. The official announcement, published on 29 Januaryis counting on the roll-out of the " over the coming weeks" .

As for Airbnb, the programme does have a name, "Superguest", but as yet has no concrete reality for its users. In short, it's an empty shell that the leader in the collaborative economy hopes to fill by asking travellers themselves to submit their suggestions in a sort of online suggestion box. What's in it? It's a mystery... But for the time being, none of the contributions seems to be 'disruptive' enough for the collaborative giant to embark on the adventure of building customer loyalty.

Admittedly, the two giants have long enjoyed an ultra-dominant position, and have not had to play hardball to retain a 'captive' customer base. But the competition has finally emerged, particularly in the chauffeur-driven car sector, and French challengers have been less reluctant to play the loyalty card. Kapten for VTCs or MagicStay for collaborative hosting have already delivered their copy. For example, when it launched its programme in spring 2018, Kapten didn't fail to tease its American alter ego. A message published on the French VTC platform's blog made a barely concealed appeal to Uber customers who would be eager to see their loyalty rewarded: "You may be in a long-term relationship with your partner Hubert, but you feel that something is missing, as if you're giving more than you're getting."

Clearly, there is nothing obvious about the concept of loyalty applied to travel. Traditional players regularly revise their programmes, slightly redesigning the contours or completely rethinking the philosophy. The aim is to keep travellers within the fold of a supplier, or even a group of partners who play the reciprocity card. Air France-KLM and Accor have, for example strengthened their partnership this summer through the Miles + Pointswhich allows travellers to simultaneously earn Flying Blue miles and Le Club Accor-Hotels points for their flights and overnight stays.

Among the various players in the business travel industry, the hotel sector is probably the most active when it comes to building customer loyalty, or at least the one that has begun to think deeply about the subject. The latest player to do so is none other thanAccor. In mid-December, the French group unveiled the broad outlines of its ALLfor "Accor Live Limitless. "We felt that the time had come to evolve our programme, to give it a new dimension with the aim of offering our customers a personalised experience with no limits."says Ian di TullioSVP Guest Services within the Accor group.

Traditional players regularly review their loyalty programmes, either redesigning them slightly or completely rethinking their philosophy.

Among the various developments, two major trends are emerging: the adoption of a experiential" approach (see box) and a business diversification through which travellers can collect and spend points. Ian di Tullio talks about "the integration of new brands and new opportunities to earn and spend points in the restorationthe meetingthe coworking"and looks to the future: "Eventually, all interactions with Accor, whether with our hotel brands or our service offerings such as workspaces, bars, nightclubs or restaurants, will earn points. These integrations will take place progressively".

Anglo-Saxon hoteliers have also embarked on this path, following the example of the Marriott Bonvoylaunched in February 2019or the "Pay with Points tested over the past few weeks by IHG. The aim is to make it as easy as possible to use points via the mobile app or hotel room TV, whether for meals, drinks, a spa treatment or an upgrade.

Loss without profit

These various initiatives must encourage consumption of points which are all too often abandoned by travellers. In fact, a study carried out by Bankrate in the United States estimates that almost half of loyalty programme members (46%) have lost their loyalty points because they did not use them in time, not to mention the respondents (9 % in the airline sector and 14 % in the hotel sector) who do not know whether they have or not, let their points expire.

This phenomenon could become even more pronounced with the advent of the new generation, insofar as the millenials are the most affected by these oversights. For example, 50 % of them have lost airline miles and 57 % hotel points, compared with 46 % and 40 % for their elders. This "waste" is most often explained by a lack of knowledge of the programmes and how they work: more than one traveller in two (53 %) does not know the value of 10,000 loyalty points, estimated at between 100 and 200 dollars by Bankrate.

The confusion that sometimes surrounds loyalty programmes is particularly noticeable in the airline sector, where reciprocal agreements between carriers or within the SkyTeam, oneworld or Star Alliance alliances do not make things any easier. At a time when calculate your milesSpecialised websites have even sprung up in the United States to help travellers get the most out of their trips, by choosing the airline, stopover or class of travel.

A study carried out by Bankrate in the United States estimates that almost half of loyalty scheme members have lost their loyalty points because they did not use them in time.

Companies therefore regularly strive - with varying degrees of success - to simplify programmes often complex, not to say illegible. "Today, if you're not an expert, you suffer more than you act. 50 % of our members don't understand how the programme works."Frédéric Kahane, Director of the Flying Blue frequent flyer programme, confessed when it was overhauled two years ago. He goes on to express a pious wish shared by many travellers: to make the operation of frequent flyer programmes so simple that the rules could be written on the back of the season ticket.

The problem extends well beyond the French market. In mid-November, a press release issued by Lufthansa promised that ".the Lufthansa group to offer the simplest frequent flyer loyalty programme"based onan easy-to-understand points system for greater transparency". A laudable approach on the face of it, but one behind which some observers see a stricter rules and a devaluation points accumulated.

the introduction of restrictions on "all-you-can-eat" passes and on frequent flyer programmes that offer air miles would remove incentives for excessive or incentivised flying

It's only a short step from there to imagining that frequent travellers will voluntarily increase their volume of journeys for the sole purpose of upgrading their status... a step that some experts are tempted to take. For example, a study published in October by theImperial College London argues that "it appears that frequent flyers make additional flights to maintain their status as preferred travellers (so-called 'mileage runs' or 'status runs') and that frequent flying is linked to status." The authors of this report, commissioned by the Ministerial Committee on Climate Change, even recommend that "the introduction of restrictions on "all-you-can-eat" passes and on frequent flyer programmes that offer air miles would eliminate incentives for excessive or induced theft".

At TraveldooNikki Stimson rejects this view, pointing to the Norwegian counter-example: "Abolishing points systems is not the solution to achieving zero emissions. Between 2002 and 2013, the Norway tried to ban frequent flyer programmes on its domestic flights. The aim of the Norwegian authorities was not so much to protect the environment as to encourage competition in a domestic market that was then under the near-monopolistic domination of SAS. Norwegian officials had identified the airline's frequent flyer programme as the main driver of its dominance. In the end, the ban was lifted in 2013, after new airlines entered the market and lowered air fares... leading to an increase in the number of flights.."

Travel more to earn more

L'environmental issue is not the only angle from which frequent flyer programmes are being called into question. Accused of travelling more in order to earn more, frequent travellers sometimes behave irresponsibly, from various points of view. According to a study published in 2018 by CWTthree out of ten business travellers would prefer the benefits of a hotel loyalty programme to those of a loyalty scheme. safety requirements set by their company. The ratio would even reach 39 % on the North American market.

But the most recurrent criticism is that it has a bad influence on buying behaviour. In other words, look at the number of potential miles rather than the price of a ticket. Tools such as Fairjunglewhich promotes a system of rewards for the most frugal travellers, have made this a selling point. Samir Idris, co-founder of Fairjungleat the launch of the platform, said that "On a return trip from Paris to Toulouse, it is not uncommon for business travellers to prefer a flight on a scheduled airline costing 400 euros to a low-cost flight costing less than 110 euros, even though they have similar timetables and the same cancellation and baggage conditions. And all for the sake of earning miles.." As a result, the travel budget would be revised upwards to obtain profits that would not benefit the company, but the traveller, on a purely individual basis.

While certain rewards such as upgrades, access to the airport lounges or thepriority boarding can be considered as 'business' advantages, obtaining tickets for a weekend away with the family does not a priori benefit the company charged. This mixing of genres caused a debate in France in 2008. An article in Le Canard Enchaîné revealed that border police officers were accumulating miles in their personal accounts during the deportation of undocumented foreign nationals. Beyond this particular case, the confusion between business travel and personal benefits can raise questions. In Germany, the problem has been resolved for tax reasons, and the miles earned by the employee are paid back to the company, otherwise they will be taxed. In France, the subject is relatively sensitive, as it touches on a form of social acquis implicit in business travel.

A GBTA study notes that 22 % of travellers who do not book through their company's preferred supplier do so to earn more points.

To justify using the national carrier, passengers will undoubtedly invoke the flexible hours traditional companies, as well as the possibility of change their ticket in case of need. The fact remains that carriers low cost have changed a great deal since their beginnings by adapting their offer to business customers. Flight frequencies have been regularly increased - particularly on routes with a "business" connotation - and the number of flights has been reduced. flexible tickets have flourished in their price lists. But it's often the compensation argument which will be put forward, more or less openly. Travelling through airports, train stations and hotels in France and Europe, and even more so in faraway places, is no picnic. Loyalty points are therefore supposed to mitigate the negative effects of mobilitydistance, working hours and stress caused by this professional nomadism. Is this 'social peace' worth the cost? After all, it's all the rage nowadays, as the trends in the bleisure or the "BYOD"Bring Your Own Device", i.e. using your own PC or smartphone for business purposes.

Complex motivations

A study by the Global Business Travel Association (GBTA) devoted to loyalty programmes in the hotel industry bears witness to a hybrid use loyalty points: only 31 % are spent solely on personal travel. In 40 % of cases, it will be a business trip, with 30 % of travellers mentioning a combination of the two practices.

The problem lies above all in the purchasing behaviour of the traveller, with the risk of the cost of the trip being inflated. The same GBTA study notes that 22 % of travellers who do not book through their company's preferred supplier do so to acquire more points. And 83 % of those surveyed believe that the benefits of hotel programmes play an important role when choosing an establishment for a business trip. The challenge for the travel manager is therefore to reconcile compliance with the travel policy and the satisfaction of his human resources - all the more so in certain sectors under pressure where the retention of talent is a strategic imperative - and even to find a solution to this problem.instrumentalise these programmes to increase compliance with travel policy. According to the GBTA, 78 % of shoppers would support loyalty programmes if they improved this 'compliance', and 71 % if they followed its rules.