The Platinum Card Experience: Travel Clubs And Loyalty Programs In The Retail Landscape
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.
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.