How important are loyalty programs to a business?
Outside of Qantas Frequent Flyer, one of the best known is arguably Myer One, the loyalty program of the struggling department store, fighting to recover from a slow start in e-commerce integration.
When it looked to replace previous CEO and executive chair, John King, it had loyalty program experience directly in its crosshairs.
Who better to take the hot seat than the boss of Qantas’ loyalty program, Olivia Wirth?
While it hasn’t been all sunshine and rainbows since Wirth began to lead Myer, there was a wry smile on the face of more than one travel industry exec when the announcement came through late last year that the retailer was extending its partnership with Qantas’ main rival, Virgin Australia, and its Velocity Rewards program.
Loyalty is a big deal, and there is no industry that illustrates that more than travel, with so many brands within it housing their own loyalty programs.
But lately, it’s been the cruise sector that has been making wave after wave of loyalty announcements.
Travel Daily and Cruise Weekly have been bombarded by press releases of updated loyalty programs, consolidated loyalty programs, rebranded loyalty programs, and more.
Just this week, Scenic Group launched its new Scenic & Emerald Rewards, bringing the Scenic Club and EmeraldEXPLORER programs together into one streamlined platform.
“The Scenic Group team undertakes extensive onboard and post-journey research to ensure guest expectations are being met,” Anthony Laver, Scenic Group GM, sales and marketing, APAC, told travelBulletin.
“Feedback showed a strong preference for guests to be able to use benefits and rewards across both Scenic and Emerald Cruises & Tours – spanning ocean, river, and escorted land journeys. That is why we merged the two programs into one integrated, simplified Scenic & Emerald Rewards platform.”
Earlier this year, Royal Caribbean Group introduced ‘Points Choice’, which allowed guests with Royal Caribbean, Celebrity Cruises, and Silversea to earn points across each brand, and apply them to the loyalty program of their choosing.
In December last year, Ponant Explorations Group unified the loyalty experience across its entire brand portfolio, including the newly acquired Aqua Expeditions.
And before that in September, NCLH launched a new Loyalty Status Honoring Program across all three of the company’s brands: Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises (RSSC).
Why now? There is a boat load of cruise growth stats we could rehash here, so how about this one from CLIA?
“The global cruise industry welcomed 34.6 million cruise passengers in 2024, with 37.7 million expected in 2025.”
With such significant growth projections, now is the time to get your loyalty ducks in a row.
Big four consultancy Deloitte’s recent dive into loyalty programs found that, “among the non-price factors that customers seem to value, loyalty programs emerge as a clear differentiator”.
“In fact, the 2025 Deloitte Consumer Loyalty Program Survey [found] that while price, value, and quality remain the top drivers of brand loyalty across all age and income groups, loyalty programs follow close behind.”
The survey results went on to show that effective loyalty programs fundamentally reshape consumer behaviour.
Most consumers (72%) asserted that loyalty programs made them more likely to spend with their preferred brand, while over half (56%) increased their spending because of the program.
Interestingly, perceived value also increased, with 80% of consumers noting they got more from the brand because of the loyalty program.
But there’s a catch.
The data also revealed a significant amount of competition, and a consumer that had a habit of ditching loyalty programs quickly.
Across industries, the average consumer enrolled in eight loyalty programs, yet actively participated in just five.
Over half of respondents (51%) engaged with only one program. Those are not great odds.
The programs that work tend to create cut-through via “emotional meaning or disproportionate reward”, Dan Monheit, chief CX thinker at advertising network Thinkerbell told travelBulletin.
“Qantas Frequent Flyer works not just because of earn rates, but because points feel culturally significant. They are talked about, gifted, chased and compared. The program has essentially become a currency,” he asserted.
“Behaviourally, programs win when they are easy to understand, easy to see progress in and deliver early reinforcement. Progress bars, tier thresholds within reach, and small, early wins drive engagement far more effectively than the promise of distant, abstract rewards.”
In other words, it’s not surprising to see the consolidation of programs in the cruise industry. Overcomplication, according to Monheit, was one of the biggest mistakes a brand or group could make.
The growth of cruise has spurred action amongst its protagonists to capitalise on the current opportunity.
As Brad Kennedy, GM of Cruiseabout told my colleague Myles Stedman, editor of Cruise Weekly, “Around a third of our customers are pretty fiercely loyal to one cruise line, the other third just love cruise and will essentially sail with any brand, and the remaining third are brand‑new to cruising”.
“That balance creates a huge opportunity to introduce customers to your business or help them build loyalty with their preferred cruise line.”
It’s such a big opportunity that Cruiseabout has its own loyalty program, World360 Rewards.
For the cruise industry that is actively trying to encourage a broader spread of demographics, particularly the younger generations, this nugget from Deloitte is worth sticking in the back pocket.
“The preferences for loyalty programs are also changing across generations. For example, Gen Z and Millennials are placing greater importance on contributing to missions and causes, opportunities to participate in community member events, and efficient and enjoyable digital experiences.”
Keep it simple and connect with what the consumer finds inspiring – there is a lot of opportunity in the cruise landscape at the moment.
While that doesn’t guarantee the program will work, it emphasises that there is no miracle solution at the foundation of loyalty. Instead, it’s the consumer connection that counts, and a brand should have that before it has a loyalty program.
“The key objective is to engage, recognise and reward members for their ongoing support in choosing Scenic and Emerald experiences,” Laver said. “Guests are at the heart of everything the Scenic Group team does, ensuring the program delivers exclusive offers, special benefits and unique on board and onshore experiences, including custom-designed cruises and escorted journeys tailored to loyalty members’ needs.”
Let the loyalty love-in continue.
The rest of the week
No sooner had I asked the editors which stories they felt should be highlighted as “must-reads” during our Friday morning news meeting, three breaking news stories arrived one after the other.
It was announced that Virgin Australia’s Velocity CEO Nick Rohrlach would depart the business on 30 Apr amid a restructure of the airline, which will see Andrew Cleary lead loyalty in addition to taking on the chief customer officer position – talk about a tie-in for the above topic.
Meanwhile, Webjet decided it was ‘no deal’ for either Helloworld or BHG, and will instead refocus on building the business, although it didn’t completely shut off the prospect of entertaining further offers.
And Norwegian Cruise Line Holdings (NCLH) appointed John Chidsey as president and chief executive officer, succeeding Harry Sommer, who is stepping down after almost three years in the role.
It was also a big week on the political and industry body side of things, with both the Federal Government and ATIA getting in on the breaking news bandwagon.
The Federal Government announced the latest in its THRIVE 2030 plan, laying out five areas of focus for the period to 2030, including growing international visitation and expenditure from established and emerging inbound markets, such as Southeast Asia and India.
Meanwhile, ATIA has welcomed four new industry leaders to the committee for a two-year term, including Helloworld Travel’s group general manager cruise, Stephen Brady.
He’s joined by Rebecca Day, Stuba regional head of sales; Kylee Ellerton, Frank Ford Travel owner/director; and Judy Tanner, Aurora Travel Services managing director.
It was also a big week for Uniworld, which had president and chief executive officer Ellen Bettridge in town.
You can catch up with all that news here, but the key themes included a data push as well as the importance of Australia to its business. Egypt is going well too, by the way.
It wasn’t such a good week for Liberty Tours though, which announced it had gone under.
Alright, that about wraps the week. There was plenty more, of course, so make sure to flick back through the pages of Travel Daily and Cruise Weekly.
If you’re like me, it will be around 8am when you check your inbox, and you’ll be on the side of a sports court of some sort raising an eyebrow, but of course not commenting, on some very questionable calls, mainly from your own child.
Distract yourself with a reread of the issues instead.
If you’re not doing that and rather enjoying a lazy morning with a beverage of some sort, I tip my hat to you.
Enjoy the weekend.
Damian Francis
Editorial Director
