Here is how the new program works:
- Expedia.com
®is the exclusive travel sponsor of the ThankYou Network, a Citibank reward program.
- People earn points when booking travel on Expedia.com
®no matter how they pay.
- If people use their Citi credit card or Citibank debit card to pay for travel on Expedia they can earn even more points.
Here are the advantages of Expedia’s new reward program:
- This is a step in the right direction for Expedia.
- Existing loyal customers will embrace this program and some of them will increase their loyalty.
- Some lookers but not bookers will convert into Expedia bookers.
- Some users of other third-party intermediaries will switch to Expedia.
Here are the disadvantages of Expedia’s new reward program:
- A major drawback is that you have to spend all of the travel points you earn on Expedia. Period.
- You cannot transfer your points to other travel providers (i.e. American Airlines). On Amex and MasterCard reward programs you can purchase travel from multiple suppliers.
- You cannot book some leading providers like InterContinental on Expedia.
- Once the novelty wears off, people will understand that this is de facto another “credit card type” reward program.
- The Thank You Network, though comprehensive on the surface, lacks many retail categories and offerings. The only travel is via Expedia.
- The main drawback is how the Expedia reward program members will be treated when consuming the travel services booked on Expedia.
- Expedia reward program members will soon understand that they are treated far worse than a lowly AA loyalty program or Marriott loyalty club member.
- No perks or preferential treatment for seating, accommodations, car rentals or upgrades.
- No late check out or early check in when they arrive (many hotels allocate their worst rooms to Expedia travelers).
How does the above affect the hotelier?
- Hoteliers need a comprehensive Third Party Intermediary-Hotel Direct Conversion Strategy.
- Hotels need to very seriously consider adopting a loyalty program of their own if they do not have one.
Loading ...