Travelocity Debuts Gift Card at Retail

Posted on by Chief Marketer Staff

Travelocity, which last month launched a loyalty program for its VIP customers, is entering the gift card business.

Through a licensing deal with Travelocity Incentives, gift cards in $25, $50 and $100 denominations are available at more than 1,000 Safeway locations and at Travelocity.com/giftcard.

The cards can be redeemed with all major brands and thousands of independent hotels in more than 140 countries. If the hotel room is available on Travelocity Incentives, it can be booked online, avoiding blackout dates, the Southlake, TX-based Travelocity said.

The cards can be customized and personalized. Up to four separate gift cards can be redeemed towards one purchase.

“Travelocity truly recognizes the great potential this new distribution channel can bring to the table,” said Peter Friend, founder and CEO of Travelocity Incentives, in a statement.

Last month, Travelocity became the first major online travel agency to launch a VIP loyalty program to give its most dedicated customers priority service, exclusive discounts and additional perks. The program added an extra layer of pampering to its standard program, which launched last November.

Travelocity tested the VIP program last fall via a sampling of customers with results that indicated the test group scored “significantly” higher than the control group in the “highly satisfied” category, the firm said.

The program gives customers the ability to earn more points on purchases, including three points for every $1 spent on flights and hotels, advance notice of sales and special VIP-only promotions, travel perks such as airport shuttle and car rental discounts and everyday exclusive discounts.

To be eligible, customers must book five times in a 12-month period, with some single reservations qualifying as two or three bookings. There are no signup or initiation fees.

Travelocity is the fifth largest U.S. travel agency, booking $7.4 billion in travel worldwide in 2005.

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