The New Look of Loyalty

Skift Take

Good morning from Skift. It’s Friday, April 22, in New York City. Here’s what you need to know about the business of travel today.

Rashaad Jorden

Today’s edition of Skift’s daily podcast discusses American Airlines’ push to drop Covid tests for inbound United States’ travelers, a small evolution in business travel from the likes of Microsoft, and how travel loyalty is evolving at multiple hotel and airline brands.

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American Airlines on Thursday called for the U.S. to drop its requirement for inbound global travelers to show proof of a negative Covid test before entering the country, coming just days after the carrier dropped its own in-flight mask mandates. American joins a growing number of travel companies calling for the testing requirement to be dropped, writes Airlines Reporter Edward Russell.

American Chief Government Affairs Officer Nate Gatten said during the carrier’s first quarter earnings call that it believes the U.S. can follow in the footsteps of countries like Canada and the U.K., which have lifted testing requirements for fully vaccinated travelers. However, Gatten did not suggest a timeline for the U.S. Centers for Disease Control and Prevention to drop the rule.

American CEO Robert Isom said that long-haul international demand at the company had recovered to 60 percent of 2019 levels last month. The company said in its first quarter results presentation that removing the pre-departure testing rules would help give that figure a boost.

Next, although travel companies are embracing loyalty programs as a way to take advantage of the pent-up demand for travel, participants in Skift’s virtual Travel Loyalty Summit on Thursday acknowledged that loyalty needs to evolve to suit the needs of travelers post-pandemic, writes Corporate Travel Editor Matthew Parsons.

As Skift Senior Research Analyst Wouter Geerts pointed out brands should be looking at ways to incorporate sustainability into their programs as consumers are looking for greener travel, Delta Vice President of Loyalty Prashant Sharma admitted his company has work to do regarding sustainability. But Parsons cited Petra Roach, the CEO of the Grenada Tourism Authority, as one executive able to blend sustainability and loyalty. The Caribbean island has launched a rewards program called 473 Connect for its diaspora, a group she described as unsung heroes who promote the destination tirelessly.

Finally, companies like Microsoft, Pinterest and insurance firm Anthem are taking steps to reignite aspects of corporate culture that were shut during the height of the pandemic, such as hosting regular events. But as companies look to get teams that work often remotely back together in person, corporate travel managers are expressing concern about internal travel budgets becoming bloated after they were cut significantly in the lull of the past two years, reports Corporate Travel Editor Parsons in this week’s Future of Work Briefing.

Corporate gifts provider Sendoso is one company frequently organizing in-person events for staff in large part, Parsons writes, because it wants to show off its new San Francisco office. Sarah Lowery, Sendoso’s head of culture and facilities, said the company flew in employees from all the U.S. for an event. She added that hosting regular events involves flying at least 50 people a week into different locations.

However, Parsons writes that some travel executives are worried about how expensive internal travel is becoming for their companies. Cindy Heston, the director of travel and events at Anthem, said her company now spends more on internal events than on traditional business travel.