Orbitz has launched Orbitz Rewards, a loyalty program in which customers earn instantly redeemable Orbucks points -- essentially rebates on their purchases. This means that they can earn points on one part of a trip, such as airfare, and cash them in for another part of that same trip, such as a hotel. One dollar equals one Orbuck.
Orbitz has been beta testing the program since March with hundreds of thousands of consumers. Early indicators are that it is persuading customers who traditionally booked only air with Orbitz to also book hotels, a much more profitable segment. Users earn 3% to 5% on hotel bookings vs. 1% for air.
Members earn 1% on bookings for standalone flights and vacation packages. They earn 3% on all hotel bookings; that goes up to 5% for hotel bookings made through the Orbitz Rewards mobile app, available for iPhone, iPad and Android. Orbitz is putting a strong emphasis on mobile in part because that is where consumers spend so much time and in part because there are no acquisition costs-- Orbitz does not have to pay Google or Amazon for sending customers to them.
It's color-coded. Anything to do with Orbitz Rewards is colored in purple. That is, when consumers look at an airfare, they see in purple print how many Orbucks will earn them that fare.
Orbitz Rewards will be the Orbitz landing page. When members land on Orbitz, they'll see in purple what they've earned so far and what they have to spend.
Travelers can stack promo codes and other offers on top of Orbucks, as well as double-dip by earning both airline frequent flyer miles and credit card points. Members can also refer friends to the program, and the member and friend will each receive a $25 thank-you credit toward future travel when the new member completes a hotel stay though Orbitz. Members can earn up to $1,000 in Orbucks per year if they recommend enough friends who book and stay.
Members who travel frequently can earn Star and SuperStar membership status. Members who stay four room nights in a calendar year at Orbitz Rewards hotels will be upgraded to the Star level, and those who stay 12 room nights will be upgraded to the SuperStar level. Star and SuperStar members receive added benefits including a priority customer service line and access to exclusive perks which may include free upgrades, WiFi, complimentary breakfast at hundreds of participating "All Star Hotels." SuperStar members will have access to an exclusive concierge service for help with a wide range of items such as securing restaurant reservations, booking event tickets, arranging golf tee times and scheduling business meeting spaces.
To promote the program, Orbitz is offering members who book trips by Nov. 22 an additional 15% off on tens of thousands hotels, double rewards on flights booked on mobile apps -- 2% instead of 1% -- and the ability to instantly earn an extra $10 in Orbucks on the next flight.
In addition, members who book their air travel on Orbitz can use the "Zap That Bag Fee" in the Orbitz mobile app or on the desktop. Through Nov. 30, consumers can send a picture of their checked baggage fee receipt and earn $25 in bonus.
Orbitz has traditionally been more of an air booking website than hotels, said Chris Orton, president of Orbitz.com. A large number of consumers booking air are also planning on booking a hotel.
"If all these hotels are being booked and not with us, it seems a shame because we have all these phenomenal deals," he said.
Follow Kate Rice on Twitter @krtravelweekly.