United Airlines values its loyalty program at $22B, Skift reports. Opening the secret box to the industry's most valuable assets... its loyalty member audience and point currency. As the travel landscape changes, companies will have to look at ways to leverage their loyalty program members as an addressable audience in new ways without eroding trust. Not since Air Canada sold (and then bought back) its loyalty program, have we had such a public view of the revenue-generating power of loyalty. United's program generated 12% of the airline's total revenue in 2019, you bet that number will be much higher in 2020, and they will be looking for ways to continue to grow that number. Important to note that hotel companies have turned to their loyalty programs as for financing as well, by pre-selling points to their credit card partners. Both Hilton and Marriott have presold close to $1B dollars each. Will we start valuing travel companies by the size of their loyalty program
For the week ending August 15, the US hotel occupancy finally went above 50% for the first time since the pandemic began. That being said, the occupancy rate of growth continued to trail that of China and Europe. That is to say that China and Europe are recovering at a faster pace than the US--we are all on the same road to recovery, the US is just not hitting the accelerator as much.