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Edition 8: March - June 2007
Program Profile: Etihad Guest When Etihad Airways, the National Airline of the United Arab Emirates, took to the skies a little over three years ago, the main goal was to offer a product and service befitting a welcome Guest rather than a mere passenger. Similarly, when we started work on our frequent flyer programme, the idea was to create a product that would deliver true value to our Guests. Well aware of frequent flyers’ cynicism about common airline programmes, given the restrictive nature of most programmes (blackout periods, lack of flexibility, unachievable rewards, miles that mean practically nothing, and so on), all of us at the team that led Etihad’s loyalty project were driven by one goal: to design a programme that would change the way frequent flyers are rewarded, a programme that’s sensitive to what Guests seek in return for their loyalty. The result was Etihad Guest, which was launched in August 2006. Comprising three Tiers — Etihad Guest Gold, Etihad Guest Silver and Etihad Guest — the programme already boasts a members base of close to 100,000 spread across 144 countries. It’s a well known fact that, over the years, airline miles have been greatly devalued, creating increasing dissatisfaction amongst frequent flyers. And frequent flyers frequently complain about having miles that get them nowhere. With Etihad Guest, we offer these innovative solutions to the shortcomings in traditional frequent flyer programmes: • Anytime availability. No blackout periods. The GuestSeat and OpenSeat concepts ensure that programme members can fly anytime they want. If there are no seats available in the RBD earmarked for redemption bookings (GuestSeats), members can book an OpenSeat with miles equivalent to the market price of the ticket. • Part Miles Part Cash. The Miles+Cash feature offers more flexibility in payment by allowing members to redeem their preferred Reward by paying part miles and part cash. • Immediate Rewards. 1MileRedemption allows members to redeem Rewards with as little as one Etihad Guest Mile in their account. • Miles that are worth more: The unique ‘Slider’ on the Reward Shop allows members to dynamically decide the cash+miles value for a Reward. • The widest choice: Our online Reward Shop today comprises over 350 Rewards in a range of categories. • Miles accrual on reward flight cash contribution: Etihad Guest members earn miles on the actual cash spent on redeeming a Flight Reward. Etihad Guest gives our Guests control over their miles. They can spend their miles as they wish, be it all miles or part cash and part miles; and they can travel when they want, rather than wait until a redemption seat is available, as in the case of traditional FFPs. Helping us create these differentiating features are Loylogic, which designs and manages the rewards platform; and Carlson Marketing, the implementation and operations partner. Our co-branded credit card with HSBC, the HSBC Etihad Guest Card, launched initially in the UAE and soon to be launched across Etihad’s remaining markets, has also met with significant success. In the UAE, the card also doubles up as a UAE Gate Card, allowing holders to clear through UAE immigration at the swipe of a card. Flexibility, achievable and immediate rewards, personalised service, and a holistic CRM-type approach to guest recognition — including an internal structure and attitude that’s completely aligned to Guest needs — have helped us deliver a unique product. With continued innovation and constant tracking of response to the programme, we will ensure that Etihad Guest continues to create more value for our members. For more details, please visit www.etihadguest.com Related Conference Presentation: > From FFP to CRM (delivered at FFP Conference 2007, Vancouver, Canada)
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