As airlines and hotels continue to turn themselves into interchangeable commodities, their brand loyalty is dying. My anecdotal experience says customers buy airline tickets mainly on price, date of travel and frequent flier miles.
According to Forrester Research, brand loyalty has slipped by almost 20 percent.
In a report on the study, authors Henry Harteveldt, vice president and principal analyst, and Elizabeth Stark, researcher, offer their reasons for the nosedive:
• Generic products or experiences. Half the travelers say there is so little difference among products that the travel company they use matters less than getting the lowest possible price.
• An abundance of travel product and booking options. Eight airlines can get you between Dallas and Fort Lauderdale. Expedia offers nearly 80,000 lodging options.
• Few incentives to become loyal. If you’re not a frequent traveler, you don’t view frequent traveler programs as relevant. Few travel companies seek to create relationships with infrequent travelers.
• A wealth of user-generated content. Travelers are no longer relying on the guidance of travel suppliers.
Before they disappear completely, brand-loyal leisure travelers should be cherished and wooed anew, the report says.
Right now foreign-owned airlines are the ones who are working on differentiating their customer experience and providing perks that make travelers in every class feel good about traveling with them. Foreign airlines are the ones flying new aircraft and serving the best cuisine in the air.
Other than points, when it comes to hotels, is there really that much difference between a Hampton Inn and a Holiday Inn? Is Courtyard by Marriott all that different from Doubletree? Is Fairfield Inn very different from La Quinta?
I honestly can’t tell the difference between any of these brands.
On the other hand, a friend noted that there is still a strong negative brand influence. She said, “If I ever have a bad experience, I am going to avoid that brand whether it is an airline, a hotel or an airport.”
One or two miserable experiences is enough to keep her away from a future booking. I have seen her pay hundreds of dollars extra on multiple tickets to avoid certain flights and miserable airports. I do the same thing, as cheap as I can be.
In an unscientific study done by asking a dozen people about airlines, here are my brand results. Southwest stands for dependable, affordable, go anytime service. Jet Blue means good inflight entertainment. AirTran is always a Spartan bargain, but good value. Continental has the best reputation for major airline service. And American, United, Delta and Northwest are hard to differentiate for anyone I asked. Finally, US Airways brings up the rear in brand expectations (but no one had flown them recently).
While brand’s positive influence may be on life support, customers certainly remember their negative experiences and connect them to certain brands.
