Loyalty programs looking to tap into Asian markets need to be prepared to tailor their offering to provide a value proposition that resonates, whether it be providing cashback on purchases, tiered discounts with exclusive benefits to VIP members, or a highly valued points-based system. 

Businesses that operate globally need to implement comprehensive local merchandising strategies, such as strong localization, to meet the diverse needs of their customers around the world. A Euromonitor International survey found that 60% of Asia Pacific respondents participate in loyalty programs mainly to receive discounts or offers, rather than to earn points for future rewards. This shows that consumers prefer direct, tangible benefits.

To appeal to Asian markets, loyalty programs should tailor their offerings to provide a compelling value proposition, such as cashback on purchases, tiered discounts with exclusive benefits for VIP members, or a highly valued points-based system.

Korea, one of the most dynamic and competitive markets for online travel agencies (OTAs), has been a key focus of our localization efforts. 

The Korean OTA market operates differently from many others. A key feature of the market is the widespread use of wallet and credit card-funded discounts. These promotions are fully funded by payment partners and are visible to all users in the booking form, making them a critical part of the booking experience for Korean consumers. Unlike traditional promotions that may be tied to specific conditions, these offers are straightforward, with benefits such as points or cashback provided directly by the payment method.

For Korean travelers, these promotions are not just a nice-to-have—they are an expectation. Competing OTAs in Korea have set the standard by integrating these offers seamlessly into their platforms. 

To remain competitive and meet the needs of our users, we knew we had to bring this functionality to Agoda to strengthen our local presence in Korea. 

We introduced wallet-funded promotions on Agoda, highlighting payment method offers directly in the booking form. This approach ensures that users can easily see and take advantage of these benefits without any additional steps.

The results of our initial experiments have been incredibly promising. A pilot test with NaverPay, one of Korea’s leading payment platforms, showed a significant increase in bookings. This led to a renewed monthly campaign. For NaverPay, if a customer makes a booking with NaverPay on Agoda, they will get 1,000 to 3,000 KRW reward back as NaverPay points depending on the offer at the time. 

We also have Kakao Pay and Payco as partners. Customers paying with Kakao Pay get a 10% instant discount for payments over 200,000 KRW (up to 20,000 KRW first-come first-served). 

We have seen significant improvement in booking conversion numbers, and anticipate achieving a substantial uplift.  

Beyond the numbers, these promotions are helping us establish Agoda as a trusted and localized platform in Korea. We will potentially be extending to more payment partners to continue to drive greater value and better experiences to our customers across Korea.

The success of these promotions in Korea has also paved the way for global scalability. Our Payments UX team is now working to expand this functionality to other markets, enabling us to replicate this success and offer similar benefits to travelers worldwide.

At Rocket Travel by Agoda, our mission is to create exceptional travel experiences for our users. Our localization efforts in Korea are a testament to this commitment. By understanding the unique needs of Korean travelers and working closely with local partners, we’re not only driving business growth but also building a platform that truly resonates with our users.

As we continue to innovate and expand these efforts globally, we’re excited to bring the benefits of localized payment options to travelers around the world.