Travel loyalty is a two way street
How many loyalty programs are you a part of? Two? Three? Six? I guess many of us are supposedly loyal to many brands and companies, not only in the travel industry. But we probably aren't as loyal to as many brands as the number of loyalty cards we carry.
Looking at loyalty in the travel industry, I've been disappointed many times. But, I've also been pleased with loyalty programs as well. Personally, I find loyalty programs shouldn't be a one way street. Loyalty isn't about joining a program and collecting points; that is a pure bonus or rewards system. Loyalty is something that is built over time, and is based on trust and recognition. And therein lies the problem with the terminology. There needs to be a distinction between loyalty programs and reward programs, and I have different motiviations to sign up to them. Of course, it isn't always black and white.
In a rewards program, my expectation is rather low. I spend money at a hotel or with an airline, thus I get some points or something else as a reward. Done.
But a loyalty program implies something different. Loyalty means faithfulness to commitments or obligations. And loyalty should go two ways. I am very prepared to be loyal to an airline, or a hotel. That would mean that I try to use that airline, for example, as often as possible. I open my kimono, and let the airline know as much about me as possbile, and try to spend my dollars with them. Why? Because I expect to get something in return. But this something shouldn't be mistaken for 'free things'. Of course no one will reject an upgrade to a better room, or a better class in an airplane. But if you want me to spend money with you, you should try to understand what I need, like, and desire, but also what I dislike. Far more important than freebies is that what I get in return is something else, something a lot smaller, but ofter harder to fulfill - recognition. And with recognition, I get return loyalty. It is small things. A personal note in the hotel room, a personal greeting and a thank you on an aircraft. Just let your loyal customers know that you actually care. And let them know that you know they are using your service again.
There are some airlines and hotels that do it quite well, and appreciate loyalty even if you fly economy, or take a low priced room. There are airlines and hotels who used to do it well, but have somehow forgotten...
So, is your airline or hotel offering me a loyalty based program or a rewards program? I'll take both, but I do want them declared correctly. And, you can do both you know. Just make sure you make a clear distinction and set the expectations for each one correctly.