Discounts or Rewards: Which to Choose When It Comes to Traveling?

There’s no doubt that consumer loyalty attracts new clients, enhances brand advocacy, and increases profits. Traditionally, businesses have been implementing coupons, discounts, rewards. But more recently, with the arrival of blockchain technology, crypto rewards have emerged as a way to incentivize customers to purchase continuously from a specific brand.

As an experience, traveling inherently involved diverse touchpoints. After all, travelers who engage in different activities and visit different places rarely interact with one company. Creating a loyalty framework then comes with unique challenges.

When it comes to traveling, deciding between discounts or rewards can be a little tricky. Let’s analyze the difference and see how to find the best option for your trips.

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Discounts or Rewards?

Did you know that the first coupon ever was from Coca-Cola? In 1887, Asa Candler had the idea of creating hand-written tickets that offered consumers a free glass of Coca-Cola. Approximately one in nine Americans received a free Coca-Cola between 1894 and 1913, making it one of the most popular drinks in the country.

Coupons have definitely stickered around since then. Now, an estimate of 93% of shoppers says they use coupons or discount codes throughout the year. It’s undeniable that we love looking for ways to save money or be rewarded for our loyalty.

Still, discounts and rewards are two different things. In the beginning, coupons were the first type of discount in the market, but later other forms came up such as buy one, get one free, or early payment discounts; usually, discounts are associated with reducing the purchase price of products or services. In the case of rewards, they are digital or physical incentives, such as gift cards, loyalty points, or crypto rewards to be used in future purchases.

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Why Do Consumers Prefer Rewards?

Many companies have become aware of the importance of having appealing loyalty programs and wonder whether discounts are better than rewards or vice versa. Although rewards haven’t been around for as long as discounts, some studies actually show that consumers prefer to get more rather than pay less. 

There are various reasons why rewards may win over discounts. First, when customers buy a product, they think about how this purchase can improve their lives, and obtaining rewards increases their feeling of gratification. Second, brands can maintain their pricing strategy because their incentive is to sell more at the actual product value, not reduce their prices. Customers won’t wait for a discount to purchase the product.

Another important aspect is that discounts can have a negative impact over time. If a product or service constantly lowers its price, consumer perception might deteriorate or even make those making full-price purchases feel betrayed. With a reward program, the opposite can happen; brands will nurture their customers’ trust.

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Travel Rewards

To inspire your own travel rewards program, know that hotels and airlines have a system and airlines have a system where their customers earn points every time they use their brand. Earned points can be used for hotel stays, vacation rentals, flights, tours and activities, gift cards, and retail purchases.

Interestingly, consumers often proactively look for the best rewards for their travels, even if more than half of them don’t take advantage of travel rewards programs yet. In America, for example, just 41% of Americans belong to a travel reward program.

Moreover, crypto rewards are eye-catching but remain misunderstood. As we mentioned before, consumers react better to rewards than discounts, and crypto rewards are equal to receiving parallel money that can be saved, spent, given away, or sold.

Crypto rewards are exponentially growing not only in the travel market but in other industries as well. It’s an appealing incentive for customers since they can see every purchase as an investment.

TripCandy is an example of how businesses can use crypto rewards to build an attractive loyalty program. At the same time, it’s an excellent option for travelers looking to obtain the most in every trip they make.

If you want to learn more about crypto travel rewards, click here.

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