AdTech Evolution | Coalition Loyalty, Singapore Style

LUFT, travel industry research

Thanks for tuning in. This week, coalition loyalty in travel.

Airlines and hotel chains are banking big on loyalty. Don't listen to Google. More on that later. These power brokers issue points and then sell them at a markup to banks, which in turn use those points to sell customers on credit cards. Smart consumers harvest net benefit from loyalty. Many end up spending more. It's big business.

Other non-travel players are jumping in to issue points. The OCBC Bank in Singapore recently partnered with telecommunications player Starhub, to offer a coalition loyalty program that allows customers to collect and redeem points across many different sellers including AirAsia BIG Loyalty, Frasers Property Singapore, Great Eastern, Millennium Hotels and Resorts, and Robinsons Group. Here is the press release.

What does that look like?  Something like this. A decentralized ecosystem of vendors unified under a common points currency. The advantage is liquidity and being able to engage a bigger base of your customers, and not only your most frequent 20 percent.



This is all fairly new stuff. Loyalty programs are evolving. The coalition model has been around for some time, but technology is making it cheaper and easier for sellers to work together.

This here, is one of those articles that is almost too good to share. Chuck over at the Currency Alliance is one of our research partners. We're also working with the blockchain community to understand the implications from their perspective. Come join us in Prague for DevCon vi, the big annual Ethereum developer's conference where we'll be working with Winding Tree and

We're tackling loyalty marketing from the perspective of cities and destinations. You may have read our white paper. It's more of a concept paper, pointing to the benefits and feasibility for tourism offices to leverage points-driven loyalty. More research forthcoming. Reach out to learn more. 

We're committed to understanding the fate of the destination brand both in form and f. They've become so porous. People come and go, riding along on a friction-less universal digital fabric leaving data everywhere. Platforms are democratizing access to information and local goods and services. They are smart businesses. Destinations should operate more like platforms.

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