Catering to its loyal customers, Expedia Inc. has launched a rewards program that enables members to earn points on hotels, flights, vacation packages and activities booked on the company’s website, the online travel agency announced March 28.
The initiative represents the company’s first rewards program not tied to a credit card, a spokesperson from Expedia tells PaymentsSource. Expedia partners with Citibank NA’s ThankYou program, he says.
However, Expedia is offering MasterCard cardholders additional benefits. Expedia Rewards members using a MasterCard to book an Expedia special rate hotel or hotel package will earn double points through Aug. 31. Any type of MasterCard qualifies for the promotional bonus, the spokesperson says. Consumers interested in the free Expedia Rewards MasterCard promotion must register online, he notes.
The new rewards program enables other participating consumers to earn one to four points per dollar spent on Expedia regardless of airline or hotel brand. If consumers book flights, hotels and activities together, they may earn two points per dollar spent. Consumers booking flights, hotels, activities and car rentals simultaneously earn four points per dollar spent, according to Expedia.
Consumers may redeem points for flights or hotel coupons and will experience no blackout dates or restrictions.
Interested consumers may register for free on Expedia’s website. Expedia also offers an Elite Plus program, which also is free but is open by invitation only, the spokesperson says. Consumers may become members of Elite Plus if they use Expedia to book and complete at least $10,000 worth of travel or have stayed at a hotel for at least 15 days in one calendar year, he explains.
Besides the rewards program and MasterCard promotion, consumers with airline frequent flyer cards or an eligible credit card rewards program also may earn frequent flyer miles and other points if they use their card to pay for eligible flights on Expedia, the spokesperson says.
Launching this type of program is a smart strategy because consumers react strongly to rewards, says Bill McCracken, chief executive at Atlanta-based Synergistics Research Corp. And as long as Expedia “has enough margin built in to its business to fund the program, they would be silly not to offer it,” he adds.
Additionally, a program such as Expedia’s most likely caters to consumers “who are not necessarily using high-end travel rewards-based credit cards like American Express and are probably not getting a ton of rewards when it comes to travel,” McCracken contends.
