Tuesday, August 30, 2016

Do Points Matter?

We have all heard this, "I am never flying on XX again!"  Or, "I will never stay at another XX hotel again!"  Are statements like that coming from their high level, high ranking loyal travelers?  No, because even the most particular traveler can let a few things slide, if its on their supplier of choice.  But, is all this about points?  I don't believe it is...its about service. 

If I was treated the same by all suppliers, would I have a favorite?  Now for any Concierge Key, Global Services or Platinum Medallion, those are going to be tough to match and maybe the question shouldn't be asked of them because to expect the same service on another carrier when you hold one of these statuses, is a tough expectation...so let's put those folks aside.  (Although, I bet they don't care about their points, just status.) 

Think about this, a loyal Delta flyer has to take American because they are the only game in town that meets their needs.  What if American looked at that person as an opportunity instead of as a non-tiered flyer.  Could they win them over with ONE experience?  Could a Hilton die hard fall in love with Hyatt because they took good care of him and saw them as a valued customer.  What if they both knew that this person traveled 3 times a month, would be they be more willing to help them?  Sadly...yes.

My premise, travelers in corporate America don't care about the points as long as they are taken care of.  Sure, its nice to look at a bank of points and see 500K sitting there and think about the vacation you can take with those, but the reality is, most don't use them.  Some donate them to charities, some use them as a gifts, some just let them sit there. Additionally, points are a financial liability.  Each time there is a merger of airlines or hotels, they have to report the points that are out there. 

I believe points don't matter, status does.  Status drives service, service drives loyalty and loyalty wins.  In the end, people want to travel with people who will take care of them.  It's why we have preferred partners, because we believe they will help take care of our travelers, regardless if they travel once a year or once a month.  Just like me, they keep going and hopefully they are taken care of along the way.