A recent report suggests that the travel industry is way ahead of the curve in the use of social media as a business tool for promoting customer loyalty.

The report cites numerous airlines, including AirTran, Delta, Southwest, United, and Virgin America, that use Facebook and Twitter to make last-minute offers, announce fare specials, or just keep passengers informed about delays and weather conditions. Hotel chains like Carlson’s Country Inns & Suites, Hilton, Hyatt and Marriott also actively use Facebook and Twitter to communicate and, more importantly, to keep customers involved. Hyatt’s Twitter account serves as a “virtual concierge,” allowing guests to ask and receive answers to inquiries and requests about the hotels and the areas surrounding them.

Some travel providers are going even further by getting into location-based services. InterContinental, for example, is using Topquest to offer customers loyalty points simply for showing up at any hotel, restaurant or bar operated by the hotel chain. The gimmick is that the customers are required to alert friends on Facebook Places or Foursquare.

Carl Howe, a director at market research firm the Yankee Group, says that travel providers recognize social media is ideal for their business for one simple reason – keeping customers actively involved. “Most travel organizations are actually looking for something more than a transaction,” says Howe. “They’re looking for loyalty, and that means a long-term engagement.”

Many of the travel providers are after something else, too – reaching the younger consumer (typically 18 to 24 years old) through media they use every day.

“For most of the people in that 18-to-24 demographic, e-mail is old school,” according to Carl Howe. “That’s something that their parents do. If you want to reach them, you have to communicate in the ways they feel most comfortable, and that’s mostly Facebook and texting.”

Of course, that doesn’t mean airlines, hotels, or other travel providers can abandon email, websites, or even toll-free help lines; these means of communication still have their place, especially for older consumers who may travel a lot but are less likely to use social media as heavily as the younger set.

So what can online marketers learn from the social media experience of the travel industry?

1. Social media has moved well beyond casual friend-to-friend connections into the realm of legitimate usage as an important communications channel for business.
2. Adding social media to the media mix is a good strategic move for a time-sensitive, highly competitive business, where it can be used to disseminate late-breaking news and make last-minute offers.
3. Using social media for its generational appeal – to reach a younger demographic that’s more socially connected – is smart, but not to the exclusion of other media that may have broader applications to diverse age groups. It’s important to know your audience and utilize the specific media channels that they embrace.
4. Figuring out ways to leverage location-based services, if they’re relevant to your business, can create new opportunities to drive customers and their friends to local establishments.

Truly challenging market conditions have forced airlines and hotels to look for ways to differentiate themselves from their competition and build brand loyalty. Loyalty rewards programs have traditionally been the primary means to do that – but now travel providers are using social media to help supercharge and revitalize these programs. It’s a great example of an industry that has learned it can’t stay in the same old place when it comes to staying ahead in marketing.

Researcher: Akshay

Source: USA Today