Travel agents have welcomed the rollout of new operator loyalty programmes, but they say customers will continue to be driven by price unless the perks pack a punch.
TUI announced earlier this month that it will extend its new Smiles Rewards Club to the UK later this year, having already tested it in the Nordics.
Days later, EasyJet revealed it is also planning to launch a loyalty programme for UK customers by the end of 2027.
Details are still a little sketchy, but TUI said its three-tier scheme includes benefits such as room upgrades or excursions, as well as a priority online chat function for loyal customers.
Agents told Travel Gossip that while such benefits are appealing, they are unlikely to outweigh discounts.
Seaside Travel Head of Business & Commercial Paula Gleeson said there is strong customer loyalty to specific operators, but price remains key.
“We’ve got so many customers who are loyal to an operator, but honestly, it’s still price-driven for us,” she said. “If we’re going to save you money, we’ll sell you elsewhere and that’s the advantage of being an independent agent.”
Commenting on potential benefits within TUI’s scheme, Paula said some of the advertised perks would not be enough to influence sales. “If it’s an in-resort priority line, no way would I switch-sell for that.
“The tour operators need to do something if sales are down, but at the end of the day, customers want something off the bottom line. Discounts. It definitely would have to be discounts, that’s the only thing that would make it worth it.”
Thirteen-branch Seaside Travel has its own loyalty scheme, launched more than three years ago, which rewards customers with a stamp for each booking on a physical card. After six stamps, customers receive perks including free car parking, lounge access and discount vouchers.
“It’s so good, it creates a real buzz and a real talking point with customers,” said Paula, adding that shop birthdays and sale weekends offer opportunities to incentivise additional loyalty stamps.
She said the introduction of operator loyalty schemes could complement existing agency initiatives: “It can run alongside our loyalty programme, we can turn that round saying you get double benefits.”
Advantage Marketing Director David Forder said loyalty schemes ‘absolutely’ appeal to customers, as long as there is ‘a clear value exchange and the offer feels genuinely worthwhile’.
He added: “In a competitive market, anything that helps customers feel more connected to a brand and encourages repeat booking has a role to play, provided it does not undermine the value of the service being delivered.
“If structured correctly, they can also be a cost-effective acquisition tool, helping businesses reduce the cost of attracting new customers by encouraging repeat customers to advocate and refer.”
David said ‘meaningful’ perks are more powerful than upfront discounts for most customers, especially if they enhance the overall travel experience.
“Meaningful perks do not always have to be significant discounts. In many cases, the most effective rewards are those that have a relatively low cost to the business but a much higher perceived value for the customer,” he added.
“Examples could include complimentary transfers, exclusive local experiences or room upgrades. These add a sense of value and exclusivity to the trip, while also helping customers feel recognised and rewarded for their loyalty.”
He added: “Discounts can influence behaviour, but they need to be proportionate to the value of the booking and sustainable for the business. We may see loyalty schemes influence booking patterns, particularly where customers feel they are building towards a tangible reward.”
Cotton Travel independent agent Faye Harrison said she was ‘fully in favour’ of operator loyalty schemes but said the early announcements felt ‘a little bit lukewarm’. She said she was keen to see how benefits would be passed through to independent agents and homeworkers.
“I’d really love to think it will be inclusive to us too, because it would be another lovely selling point and benefit for our clients,” she said.
She also agreed that customers remain highly price sensitive.
“In the current climate, everything is price-driven,” she said, adding some customers would switch operators if they could save £30.
Cotton Travel has recently introduced its own loyalty scheme, with perks including lounge access, free parking, fizz on flights and discounts on future bookings. “It’s such a nice thing to be able to offer back to loyal clients,” said Faye.
“There’s genuinely nothing better than being able to message somebody and say: ‘You’ve got complimentary airport parking,’ or ‘I’ve managed to add fast pass tickets for you.’ It’s not even about ‘rewarding’ necessarily — it’s just a lovely way of showing appreciation to the people who continue to support your business time and time again.”
Faye said she uses the scheme as a unique selling point on her social media.
Ashdown Travel Head of Retail Tricia Lester said the agency, which has just acquired its fifth store, is also ‘actively exploring’ the introduction of its own loyalty programme.
She said she doesn’t anticipate the introduction of operator reward schemes having a significant impact on Ashdown’s existing client base, but it might make an impact on new client bookings.
She added: “Our customers choose to book with Ashdown Travel because of the expertise, personal service, and trusted relationships we provide. That said, such schemes may have some influence on new-to-agent clients who may not yet fully understand that we can manage and service their bookings, even when they are enrolled in operator loyalty programmes.”
