IN MYOPINIONTHE NEW REALITY OF LOYALTYBy Claudia Infante, Chief Data Officer, MargaritavilleA global pandemic in 2020 that forced the world to stay home, reshape livelihoods, realign priorities, and learn new ways to achieve results, will go down in history as a disruptive moment in time when all commercial and service business models were changed, eliminated, or evolved, to never be the same again. Loyalty programs will be no exception. The travel and service industry suffered a major shakedown: no corporate or business travel, no conferences, no weddings to attend, no family vacations, no dining out, no concerts, no sports, nothing. The world stood still for months. Airlines and major hotel brands rushed to protect their loyal customers by offering flexibility in purchases, waiving penalties, and extending membership benefits and status for months to ensure customers remain active members. If there was ever any doubt about the impact of loyalty programs in the financial health of a business, last year was a quick reminder of the paramount importance these programs hold in their respective brands. As it would be expected when the world is stuck at home, membership, and subscription services (ultimately considered paid loyalty programs) soared and thrived. It all relates to convenience and availability. Companies like Amazon and Netflix saw large growth in their ranks, while services like Instacart or Doordash became everyday utilities. None of these however, generate true loyalty, only transactions and interactions as they are solving an immediate problem related to food or | | 8 TRAVEL AND HOSPITALITY TECH OUTLOOKJUNE 2024
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