Latest news with #Arrivia
Forbes
23-05-2025
- Business
- Forbes
How Personalization Is Shaping The Travel Economy
MADRID, SPAIN - JANUARY 27: The chef of Simpar Restaurant, Axel Smith, wins the XI Championship for ... More the Best Iberian Ham Croquette at Madrid Fusión 2025 at Ifema on January 27, 2025 in Madrid, Spain. 'Madrid Fusion Foods of Spain' celebrates its 23rd edition since it was first held in 2003. (Photo by) The pandemic didn't just disrupt travel—it reprogrammed it. Travel and live events were the currency consumers most wanted and the absence of opportunities created more than just pent up demand. Gen Zers created bucket lists. The longing that hasn't subsided even though we are years removed from the initial pandemic disruption. Consumers today aren't chasing destinations. They're chasing experiences with meaning. According to Jeff Zotara, CMO at Arrivia, we've entered the age of the purposeful traveler, and loyalty programs must evolve—or risk becoming obsolete. AI has a big role to play in the travel booking shift. 'AI and machine learning are now the engines behind meaningful loyalty,' says Zotara. 'It's not just about booking the next cruise—it's about booking the right cruise with the right excursion, cabin, and cuisine.' 'Today's travelers aren't just chasing deals – they're chasing experiences that reflect who they are,' says Lesley Klein, SVP of Strategy and Brand Marketing at Priceline. 'That's where AI can really deliver. We recently launched Neighborhood Navigator, a new tool that helps travelers find their perfect neighborhood in a new city by cross-matching with neighborhoods they like elsewhere. Combined with additional features like our new Trip Vibe Selector and AI-powered Penny Maps, we're helping customers personalize their trips to align with their interests and passions.' Arrivia's personalization engines have shown 10–12x higher conversion rates when customized travel offers are delivered based on past travel behavior, booking history, and even dining preferences. Think Amazon Prime, but for travel—with every touchpoint curated based on data. When strategy meets technology and the consumers preferences are clearly considered the opportunity to drive increase demand is significant. A person has a conversation with a Humanoid Robot from AI Life, on display at the Consumer ... More Electronics Show (CES) in Las Vegas, Nevada on January 10, 2024. (Photo by Frederic J. BROWN / AFP) (Photo by FREDERIC J. BROWN/AFP via Getty Images) Zotara sees the experience economy being driven by two major forces: Interestingly, household composition (child vs. no child) was a bigger predictor of immersive travel behavior than age alone when I published my research on youth culture trends. We also discussed the double-edged sword of loyalty benefits. Take American Express: once famed for its 'buy one, get one' first-class offer, it eventually sunsetted the perk. 'If you take something away, you better replace it with something remarkable,' said Zotara. 'Consumers notice—and they're not shy.' In its place? A web of monthly benefits—Uber credits, streaming services, Grubhub perks. The logic? Provide continuous value that keeps cardholders engaged every month, not just on their annual vacation. Zotara outlined what separates great programs from forgettable ones: As Zotara summarized: 'The best loyalty programs are the ones you live with—not just ones you use when you fly.'
Forbes
21-04-2025
- Business
- Forbes
Personalization Drives Travel Loyalty: Arrivia Exec Gives Insights
Jeff Zotara has spent over a decade helping brands redefine what loyalty means. As Chief Marketing Officer at Arrivia, a global travel technology company powering loyalty platforms for American Express, Hilton Grand Vacations, T-Mobile, and others, he's had a front-row seat to one of the most seismic shifts in consumer behavior: the evolving definition of loyalty itself. What once meant a punch card, or a discount code has now become a rich data exchange between consumer and brand—fueled by AI, personalization, and emotionally resonant experiences. LAS VEGAS, NV - FEBRUARY 10: The Las Vegas Strip and Bellagio Water Fountain Show is viewed after ... More dark on February 10, 2023 in Las Vegas, Nevada. Las Vegas will play host to the NFL's Super Bowl LVIII, taking place next year at the recently constructed Allegiant Stadium, home of the Las Vegas Raiders. (Photo by) Zotara doesn't mince words: 'Consumers are more and more demanding as far as getting to the end of that journey—that decision point—faster, and having those offers be more personalized to them.' Today's loyalty programs leverage AI to create tailored experiences. 'If I'm a member of a loyalty program,' Zotara added, 'that travel platform likely knows what I've searched, when I've searched, and where I want to go. That experience needs to be, and should be, very different than if my mother-in-law took a trip.' Leading brands are already acting on this. Amazon has long set the gold standard for data-driven personalization, and now travel loyalty is catching up. Capital One, for example, offered early access to Taylor Swift tickets—knowing full well it resonated with the passions of their cardholders. 'It's important not to get caught up in the pressure to implement 1:1 or hyper-personalization from day one. Simply start by asking questions you can easily turn into more personal interactions. Ultimately, personalization is a data collection exercise and loyalty programs provide an ideal platform to turn zero-party data into more relevant experiences,' remarked John Pedini, Forrester Analyst. Zotara echoed a concept explored in Marketing to Gen Z: data is currency, and consumers—especially younger ones—know it. 'If we can be more transparent with the consumer,' he said, 'we have found they are more than willing and wanting to have that personalized user experience by providing that data point.' According to a Salesforce report, 79% of consumers are willing to share relevant data in exchange for personalized engagement. But transparency is key. 'A lot of brands used to collect data without really informing people. That doesn't fly anymore.' To explore the generational nuance behind this shift, see Fromm's 'Gen Z Is Not Gen Y On Steroids.' The future of loyalty isn't just about points earned—it's about points redeemed meaningfully. 'You're seeing a lot of this with my American Express Platinum card,' Zotara noted. 'I've got Hulu and Wall Street Journal and Uber credits every month… it reinforces the value of my annual fee across a variety of lifestyle activities.' This shift—toward what McKinsey calls 'lifestyle loyalty'—is driven by consumer demand for flexibility. T-Mobile's loyalty program, for example, gives subscribers benefits outside of mobile service, from travel discounts to streaming offers. The goal? Create emotional connection and frequency of use. 'I saved $1,000 on this trip,' Zotara said, 'and I went to New York City and enjoyed a Broadway play. That feels good. It allows the brand to make a more emotional connection.'
