In a recent earnings call, airline executives expressed caution, citing volatile inflation and a discerning consumer market. However, Delta Air Lines bucked the trend, reporting an 11% increase in loyalty and travel rewards revenues for the most recent quarter. The key to this success lies in the growing importance of loyalty and travel rewards programs, as consumers continue to seek out ways to earn and redeem points for travel.

According to Alfonso Paredes, president of private-label solutions at Expedia Group, consumers are still going to travel, but they expect to earn points as they use preferred cards and spend their money with airlines, hotels, and other providers. This increased focus on loyalty and rewards has led to significant growth in white-label solutions, which integrate Expedia offerings into partner firms’ consumer-facing operations.

Growth in White-Label Solutions

• Paredes’ unit has worked with more than 60,000 partner firms from airlines to banks and travel agencies.
• The growth has come as travel-focused loyalty programs of banks and retailers have been the most clicked-on functions of their sites.
• Eighty-five percent of customers are looking to redeem or use their rewards and points during their shopping experience.

Expedia’s white-label solutions have been among its fastest-growing operations, with revenues increasing by double-digit percentages last year. This growth is attributed to the growing demand for personalized loyalty programs, which allow banks and retailers to offer unique rewards and benefits to their customers.

Personalized Interactions

“We’re here to provide the same experience and technology for our partners so that they can do the same for the travelers,” Paredes said. “Delivering personalized recommendations and loyalty offers to our partners, and using data to inform their efforts.”
The company has 70 terabytes of data at its disposal, and its private-label solutions receive 17 billion API calls daily. This data is used to provide guidance and recommendations to partners, helping them to better understand their customers’ preferences and behaviors.

For instance, one bank may reward consumers who book flights using their cards, while another may emphasize hotels and activities more visibly. The key is to provide unique and personalized rewards that align with each bank’s target audience.

The Expedia Platform: A Continuum of Services

“The continuum across the Expedia platform is such that a consumer can book an apartment on Vrbo, earn points, and redeem those points at a hotel later,” Paredes said. “This broad range of activities boosts the data flowing across the platform, helping to fine-tune the white-label operations.”
The Expedia platform is designed to provide a seamless experience for consumers, allowing them to book a wide range of travel services, including accommodations, activities, and experiences. This continuum of services also enables the company to provide personalized recommendations and loyalty offers to its partners, helping them to better understand their customers’ preferences and behaviors.

The Power of Personalization

“That value proposition enables Expedia partners to interact with their end users in a variety of languages, through artificial intelligence concierges, chatbots, and different tiers of service,” Paredes said. “And you can be proactive to their needs.”
The company’s focus on personalization has led to numerous success stories, including the example where a customer forgot their cufflinks while traveling. A chatbot on the Expedia site prompted the customer’s hotel concierge to offer a pair of cufflinks, ensuring a positive and memorable experience.

“That’s personalization, and that’s why AI and technology are helping to identify every single segment and the partners and the loyalty members,”

Paredes said. “And you can be proactive to their needs.”
In conclusion, the growth of loyalty and travel rewards programs continues to be a key driver of consumer behavior. As consumers seek out ways to earn and redeem points for travel, companies like Expedia are adapting to meet their needs. By providing personalized interactions, leveraging technology, and offering a continuum of services, Expedia is well-positioned to continue its success in the loyalty and travel rewards space.