Loyalty programs need to stay relevant. When people aren’t traveling, they aren’t engaging with the brand. Expect co-brand credit card applications to fall. There will be fewer new customers, and perhaps even more people than usual will cancel cards when annual fees come do. Both the number of active members of a program will drop and the size of the credit card portfolio will decline as well. The volume of card spend is likely to fall in recession.
Yet loyalty programs are key to a travel brand’s resurgence. What should they be doing?