Four Reasons Why Airports Need a Customer Loyalty Program

Four Reasons Why Airports Need a Customer Loyalty Program

Once they were simply transportation terminals, but airports have evolved into thriving sources of revenue. New in-terminal ancillary services such as nursing pods, sleeping pods, pet relief stations, yoga and exercise rooms, special airline membership clubs and upscale restaurants are just some of the ways airports are boosting revenue and gaining a competitive edge. Outside the terminal lies the number two source of non-airline revenue: parking.

A solid case has been made and the data is in – the need for airport parking customer loyalty programs has never been greater. Here are four reasons why:

1. The Data is Convincing

It is clear that customer loyalty programs are here to stay and airports are no exception to the research:

  • 81% of consumers are more likely to continue doing business with brands that offer loyalty programs
  • 75% of consumers say loyalty programs are part of their relationship with brands
  • It costs a business about 5-10X more to acquire a new customer than it does to sell to an existing one
  • While loyal customers are about 20% of customer base, their average spend is up to 70% of sales over time
  • 73% of loyalty programs members are more likely to recommend brands with good loyalty programs

2. Your Customers Demand It

Customer loyalty programs are a direct response to customer demand. Today’s consumer expectations are higher than ever, putting more pressure on brands to deliver excellence. Surveys show that personalized loyalty campaigns are no longer an added delight but are now assumed by consumers.

With real-time information about consumer expectations and preferences readily available, consumers not only expect to have a personal customer experience, but grow frustrated when companies fail to deliver. Even worse, consumers today turn to social media to communicate their frustration.

3. It Boosts Revenue – Twice

Customer loyalty for parking has a two-fold benefit for airports. First, the parking revenue stream will be impacted for all the reasons listed here. But the second and perhaps greater benefit is the ability to link parking loyalty to retail outlets within the airport terminal, generating more ancillary revenue there.

4. It Collects Customer Data

Without question, if airports can keep customers lingering longer inside their terminals, it will increase spending and thus, increase the airport’s ancillary revenue. To do this, airport marketers must understand customer needs and behavior and have the ability to influence the buying behaviors of their customers and passengers.

A well-structured parking customer loyalty program will collect this type of information and give airports data needed to personize rewards. A recent survey shows that the number one reason a passenger might spend more is that they receive an offer in advance. This means that airport communications must be relevant, personalized and well timed. How can an airport accomplish this difficult feat? With a parking customer loyalty program, of course!

An airport parking customer loyalty program is the perfect solution for linking loyal parking customer rewards to airport terminal outlets and services by facilitating passenger connection and engagement.

Finding the Right Customer Loyalty Program

While there is a glut of customer loyalty provider options, most are not optimized for airports and air travel. Only a few providers exist that can provide the features needed in the unique world of airports. Here is a list of features that should be considered when selecting an airport parking loyalty program provider:

  • Integrated with online reservation process
  • Third-party integration capability
  • Program customizable by parking operator
  • Real-time account activity
  • Customer data collection
  • Multichannel booking options
  • Redemptions made during booking process
  • Online customer account access to view account activity
  • White-label system to integrate with airport website
  • Complete Program Support

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