Frequent Flyer Survey 2009

Loylogic, a reward services provider for loyalty programs, has released the results of a survey conducted during the recent Freddie Awards voting process. From Jan. 15 to Feb. 28, 2009, frequent flyers were asked questions related to their points and miles redemption behavior in the hopes of winning a Ugobe Pleo Robotic Toy. The questions and the results follow.

1. Have miles and points become more valuable to you, now that the global economy is going through a downturn period?
66% Yes
10% No
24% If only I could use them …

2. When you buy a merchandise reward with miles or points, what do you typically buy?
21% Something expensive that I would not buy with cash
48% Something that I need and would also buy with cash
31% Gifts for my family and friends

3. Do you compare prices when you buy merchandise online paying in cash?
74% I always compare
18% I only compare my preferred merchants
8% I do not compare and just buy when the price is right

4. Do you calculate the cash-value per mile or point when you buy a merchandise reward online paying with miles or points?
70% Yes, I calculate the value I get
30% No, I don’t really care

5. What makes the ‘reward difference’ for you?
49% Value for my miles
24% Large choice of rewards
6% Fun to use my miles or points (auction, games)
15% An easy-to-use reward shop
6% Other reason

6. Would you like the flexibility to use your miles or points, while shopping online at your preferred merchant Web sites?
84% Yes
5% No
11% I don’t care

7. Which reward program that you use offers the best rewards?
32% FFP
29% Hotel
39% Credit Card

Loylogic collected over 4,000 votes from members of over 60 loyalty programs worldwide. Survey participants are members of the following frequent flyer, frequent guest or credit card programs (top five only).

15% Kingfisher Airlines King Club

10% Lufthansa Miles & More

8% American AAdvantage

8% Delta SkyMiles

4% Jet Airways Jet Privilege

22% Marriott Rewards

21% Hilton HHonors

8% Starwood Preferred Guest

7% IHG Priority Club Rewards

4% Hyatt Gold Passport

13% American Express Membership Rewards

7% Citi Thank You

4% Diners Club Club Rewards

3% WorldPoints Rewards

2% Chase Freedom

Loylogic concludes from these findings that 66 percent of frequent flyers who responded find their miles or points to be more valuable now. In a similar survey that we conducted in October 2008, just over 30 percent of those responding said that their miles were more valuable while over 45 percent said that they viewed miles as less valuable.

Only one in five frequent travelers in the Loylogic survey said that they use their miles/points for “something expensive they would not buy”–indicating that in these tough economic times people are forgoing expensive unnecessary items–even when the item is “free” with loyalty program points or miles. Travelers are also likely to compare prices (74 percent) when buying merchandise online with cash and calculate the cash value (70 percent) when redeeming miles or points, which seems to indicate that they do indeed see loyalty currency as money in the bank.

The largest percentage of agreement in the survey is that 84 percent would like the opportunity to use their miles and points directly on their preferred merchant Web sites. And finally, credit cards were found to be the most popular reward programs at 39 percent followed closely by airlines (32 percent) and hotels (29 percent).