California-based travel technology firm Switchfly has launched an internet booking engine for airlines to complement its dynamic packaging and loyalty and redemption products. The firm has partners operating websites in 25 countries and it works with BA’s loyalty scheme Avios and is well known in Europe for its partnership with American Express.

Hotels consistently strive to better understand the key drivers of loyalty program engagement to better appeal to members of all types. Loyalty data tell the story of what every member desires most, as told through his or her individual history. Hotel Management spoke with Douglas Gaccione, executive vice president of global growth at Switchfly, about how hotel brands can create a more personalized, curated experience for members.

Guest connectivity goes beyond network strength and the fastest WiFi connection. Technology is also allowing hotels to interact with guests on a more personal level due to the industry’s improved data gathering capabilities. LODGING spoke with Alan Josephs, executive vice president of product, marketing, and alliances at travel e-commerce platform Switchfly, about how executing on that data is changing the relationship between travelers and hotels. Here are three of his insights.

There’s a tremendous amount of effort put into understanding Millennial and Generation Z consumers – individuals aged 18 to 35 – what they like, what motivates them, and how they are willing to spend their disposable income.  This is for good reason; these consumers represent $143 billion in spending power, and comprise about 38% of the US workforce. Brands need to meet their needs in order to survive, and if they hope to be able to compete they need to identify ways to drive loyalty from this cohort.

There’s a tremendous amount of effort put into understanding Millennial and Generation Z consumers – individuals aged 18 to 35 – what they like, what motivates them, and how they are willing to spend their disposable income.  This is for good reason; these consumers represent $143 billion in spending power, and comprise about 38% of the US workforce. Brands need to meet their needs in order to survive, and if they hope to be able to compete they need to identify ways to drive loyalty from this cohort.

Most travel loyalty programs typically have point accrual and redemption as their core functionality.

Membership in travel loyalty programs have other privileges as well, but it’s impossible to divorce these programs from the earning and burning of points or miles. 

And for many travelers and loyalty members, that’s just fine.

But the next generation of consumers – young Millennials and Generation Z – don’t want one-size-fits-all rewards.

Hotel brands know who their best customers are.  They are the high-value guests that travel frequently and always – or at least consistently – book and stay at properties in the brand network.  They are active members of the hotel’s loyalty program.  They book higher-tier rooms, have a high average cart size on the hotel’s ecommerce site, and spend money on property for ancillary services, food and beverage and entertainment.  They refer other travelers and are advocates for the brand.

New companies are entering the travel rewards industry, addressing the needs of younger travelers, while traditional loyalty programs are also expanding their offerings.

Travel is a vast industry and as the online sector looks set to become a $817 billion industry, the timing seems right for fundraising. Tech assessment platform TechCrunch says that Switchfly “uniquely combines a highly scalable and secure architecture with deep product and content inventory”. As pressure increases on margins, this revenue boosting technology could not be more timely.