Travel Loyalty Programs - US - July 2007

Table of Contents

• Scope and Themes
• What you need to know
• Definition
• Abbreviations and terms
• Abbreviations
• Terms
• Executive Summary
• Overview of the industry
• Differentiation (or not) among loyalty programs
• Growth of online travel sites impacts travel loyalty programs
• Consumer survey shows that income is the main driver of heavy travel
• Only 33% of online respondents are enrolled; 20% of the overall population
• Anyone can join any number of frequent flyer programs
• Plans not maximizing potential if consumers can' t get rewards
• Growth in the number of travel loyalty plans/redemptions will continue
• Game-changing development?
• Market Drivers
• Key points
• Travel loyalty programs are a financial service that are driven by financial indicators
  • Figure 1: U.S. GDP, at current and constant prices, 2001-06
  • Figure 2: Corporate profits, at current and constant prices, 2001-06
  • Figure 3: Median household income, 1995-2005
  • Figure 4: Household income distribution, 1999 and 2005
  • Figure 5: Travel expenditures in the U.S., at current and constant prices, 2002-07
  • Figure 6: Total U.S. scheduled airline passenger revenue, at current and constant prices, 2002-06
  • Figure 7: Domestic and international enplanements, 2001-06
  • Figure 8: Total U.S. lodging revenues, at current and constant prices, 2002-06
  • Figure 9: Hotel occupancy and revenue, 2001-07
  • Figure 10: Total U.S. car rental revenues, at current and constant prices, 2002-06
  • Figure 11: Motor gasoline retail price per gallon, U.S. city average, 2001-06
• Credit card ownership and usage continues to grow
  • Figure 12: Total U.S. credit card charge dollar volume and transactions, 2000-05
• Population trends and projections
  • Figure 13: Population aged 18+, 2001-11
  • Figure 14: Frequent flyer program participants, by age, 2001-11
• Market Size and Trends
• Market size
• Key points:
  • Figure 15: Total redeemed travel rewards, 1999-2007
  • Figure 16: Total airline loyalty program cumulative unredeemed miles, 2000-05
• Market trends
• Game-changing development?
• Supply Structure
• Key points
• Airlines
  • Figure 17: Membership in top airline loyalty program providers, 2007
• Airline global alliances
  • Figure 18: Top three airline global alliances, 2007
• Discount airline programs
  • Figure 19: Name and type of frequent flyer programs, by discount airlines, January 2005
• Hotels
  • Figure 20: Top five hotel loyalty program providers, 2007
• Internet travel services
• Car rental companies
  • Figure 21: Top ten U.S. car rental companies, by sales, 2006
• Advertising and Promotion
• Key points
• Television spots
• Airlines
• Southwest Airlines
  • Figure 22: Southwest Airlines visa promotion
• Hotels
• Best Western
  • Figure 23: Best Western Gold Crown Club International Rewards Card promotion
• Comfort Inn
  • Figure 24: Comfort Inn Choice Privileges promotion
• Crowne Plaza
  • Figure 25: Crowne Plaza meeting planner rewards
• Hyatt
  • Figure 26: Hyatt Gold passport program benefits
  • Figure 27: Hyatt Gold passport program hotel locations
• Internet travel companies
• Orbitz
• Figure 28: Orbitz rewards now! program hotel mega sale
• Credit cards
• American Express
  • Figure 29: American Express/Delta SkyMiles promotion
  • Figure 30: American Express membership rewards points program
  • Figure 31: American Express pay with points program
• Capital One
  • Figure 32: Capital One no hassle rewards program air travel rewards
  • Figure 33: Capital One no hassle vacation travel rewards
• Chase
  • Figure 34: Chase Freedom rewards campaign
  • Figure 35: Chase Freedom travel rewards
• Citi
  • Figure 36: Citi AAdvantage card promotion
  • Figure 37: Citi Premier Pass card travel rewards
• MasterCard
  • Figure 38: MasterCard travel rewards
• The Consumer
• Introduction
• Consumer survey highlights
• Frequency of leisure and business travel
  • Figure 39: Number of times consumers traveled in the last 12 months for leisure or personal reasons that included air travel, a hotel stay or a car rental, by gender, race/ethnicity, age, household income, marital status, presence of children and region, May 2007
  • Figure 40: Number of times consumers traveled in the last 12 months for business reasons that included air travel, a hotel stay or a car rental, by gender, race/ethnicity, age, household income, marital status, presence of children and region, May 2007
• Participation of travelers in loyalty programs
  • Figure 41: Percentage of consumers who have traveled in the last 12 months who have or belong to travel loyalty programs, by gender, race/ethnicity, age, household income, marital status, presence of children and region, May 2007
• Consumer participation in frequent flyer programs
  • Figure 42: Participation in frequent flyer programs, by gender, race/ethnicity, age, household income, marital status, presence of children and region, January-October 2006
  • Figure 43: Participation in specific frequent flyer programs, January-October 2006
  • Figure 44: Number of frequent flyer programs in which respondents are enrolled, by gender, race/ethnicity, age, household income, marital status, presence of children and region, January-October 2006
  • Figure 45: Participation in specific frequent flyer programs, by race/ethnicity, January-October 2006
  • Figure 46: Participation in specific frequent flyer programs, by household income, January-October 2006
  • Figure 47: Participation in specific frequent flyer programs, by region, January-October 2006
• Consumer participation in hotel frequent guest programs
  • Figure 48: Participation in hotel/motel frequent guest programs, by gender, race/ethnicity, age, household income, marital status, presence of children and region, January-October 2006
• Consumer participation in car rental clubs
  • Figure 49: Participation in specific car rental clubs, January-October 2006
  • Figure 50: Participation in specific car rental clubs, by race/ethnicity, January-October 2006
  • Figure 51: Participation in specific car rental clubs, by household income, January-October 2006
• Consumer usage of miles and points
  • Figure 52: Consumer usage of miles and points that they have earned, May 2007
  • Figure 53: Consumer behavior regarding frequent flyer programs, May 2007
• The Future
• Market forecast
• Total redeemed travel loyalty program rewards
  • Figure 54: Forecast of total U.S. redeemed travel rewards, at current and constant prices, 2007-12
• Forecast factors
• Appendix: Trade Associations and Government Agencies