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View Travel Weekly, January 14, 2008

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Cover Story: Closing the Loyalty Gap

Travel agents like to think their clients are loyal. But ask most agency owners to quantify client retention or repeat business and you’re likely to be answered with some blank stares.
BY LESTER CRAFT PAGE 24

There’s a big difference between thinking clients are loyal and knowing actual repeat rates. What makes this difference especially critical is the fact that the amount of business attributable to repeat customers tends to be far greater than business from new customers. Signature Travel Network, for example, calculates that 60% of member agencies’ business comes from the 30% of customers who repeat year to year.

Signature’s experience is not unusual, except that unlike most agencies, the consortium has actually begun analyzing client repeat and retention rates, with an eye toward reaping the substantial benefits that can come from increasing those rates by even a percentage point or two.

While Signature and major agencies such as American Express Travel appear to be on the leading edge in recognizing the importance of tracking and improving client loyalty, they will soon have company. The loyalty gap is about to get a good deal of study and attention in the months ahead. ...

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