By Mike Putman, Custom Travel Solutions

If co-brand credit cards and frequent flyer programs have
taught us anything, it’s that consumers love to travel and will go out of their
way for exclusive travel benefits. Just think how many high-value travelers pay
hundreds of dollars for an Amex Platinum Card to access the 24/7 concierge
services and other elite benefits. The payoff is absolutely worth the price of
membership, as Platinum Card members can request almost anything within reason from
their Amex concierge — even something as specific and unconventional as having
a birthday balloon in a specific shape waiting at their hotel room. It may seem
small or silly, but that attention really matters to them — and those small moments
create lasting loyalty.
By offering these sorts of travel benefits on top of core
financial services, Amex is able to generate ancillary revenue and loyalty, attract new customers and ultimately
convert brand affinity into brand equity. Retailers do the same through their
own loyalty programs, though retailers’ travel benefits — if travel benefits
are part of their strategy at all — may not be as elite or exclusive as what
Amex can offer. Nevertheless, the popularity of travel benefits such as
frequent flyer miles or concierge services has helped drive loyalty success for
many retailers.
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But travel benefits have become so prevalent across so
many loyalty programs (including airline FFPs) that retailers need new ways to
stand out. For what (to the consumer) amounts to about the price of a Netflix
subscription, many retailers are offering branded travel clubs on top of their
existing loyalty programs. These travel clubs appeal to loyalty program members,
as well as potential members, with private booking engines, exclusive fares,
package deals, concierge services, social tools for trip planning and so much
more.
For high-value travelers and even occasional leisure
travelers, a branded travel club can be a Platinum Card experience at a
fraction of the price — and a strong incentive to remain loyal to one retailer.
The Branding Power
Of Retail Travel Clubs
Travel clubs are not new — in fact, many would consider
the Amex Platinum Card a travel club at heart. What is new, however, is the
ease with which non-travel brands, such as retailers, banks and credit unions, can
offer their own private label travel clubs without adjusting their retail
offerings at all.
The convergence of software-as-a-service (SaaS)
technology platforms and subscription models (like Netflix or Birchbox) are
making it easy for retailers to “plug in” to the global travel ecosystem and
offer relevant products and services to their customers, either as a standalone
club or as an add-on to existing loyalty offerings. And since these clubs are
entirely branded to the retailer, it helps “amp up” brand engagement and
reinforce brand identity.
Travel Clubs And Loyalty
Marketing For Retailers
The travel club concept is not an affiliate marketing scheme, but a true added-value offering
that complements existing loyalty programs. Wholesalers such as Sam’s Club have
been wildly successful offering ancillary member services like health
screenings, but the company had to suspend its travel services last year. This
isn’t surprising, as even loyalty programs often fail to connect with customers
— witness the recent failure of the Amex Plenti program. But other retailers have found success with loyalty and
travel clubs, and Sam’s Club could easily revive its travel services with a better
technology platform and partner for its travel club.
For retailers thinking about a travel club offering,
loyalty should always be their first consideration. Does this club truly add
value to justify the membership fee? Many Sam’s Club shoppers are undoubtedly
Amex Platinum Card members — they value travel and lifestyle benefits more than
anything — but the quality of the club, both online and offline, will be key to
making it a success.
In a crowded market where differentiation and brand
loyalty are as important as ever, tapping into the inspirational and
aspirational nature of travel benefits can be a crucial advantage for
retailers. Custom Travel Solutions can help them enhance their loyalty
strategies, acquire new customers, and introduce new revenue streams through a
branded travel club — the perfect complement to any retail loyalty program.
Mike Putman, CEO of Custom Travel Solutions, has spent his career
creating and growing travel businesses. A pioneer of online travel, Putman
founded one of the first travel sites, 11thHourVacations.com and built it into
one of the largest online sellers of complex travel. At CTS, he is
responsible for empowering companies of all kinds with tools
to drive revenue and improve customer loyalty and recruitment. Prior
to founding CTS, Putman was president of Rovia, LLC, molding them
into a global company and earning the World Travel Award for the World’s
Leading Online Travel Agency. His leadership and understanding of e-Commerce and
travel distribution helped CTS create the first customized travel and
lifestyle benefits platform built for timeshare and resort
operators.