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IBM Global Business Services
IBM Institute for Business Value
Travel and
Transportation
Committed
customers or
captives?
Making travel loyalty
programs more valuable,
relevant and differentiating
IBM Institute for Business Value
IBM Global Business Services, through the IBM Institute for Business Value,
develops fact-based strategic insights for senior executives around critical public
and private sector issues. This executive brief is based on an in-depth study by
the Institute’s research team. It is part of an ongoing commitment by IBM Global
Business Services to provide analysis and viewpoints that help companies realize
business value. You may contact the authors or send an e-mail to iibv@
for more information.
Committed customers or captives?
Making travel loyalty programs more valuable, relevant and differentiating
By Brian Goehring, Anand Janardhan and Maureen Stancik Boyce
Customer loyalty programs have suffered as travel providers have been hit with
multiple challenges over the past few years – bankruptcies, skyrocketing fuel
prices, new imperatives from private equity owners, an increasing number of
competitors and deteriorating customer satisfaction. As a result, the industry
risks further commoditization, while other industries continue to innovate. Many
travel customers feel “trapped,” remaining loyal primarily to avoid losing status
1
and accumulated rewards. How can travel companies replace reluctant allegiance
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