First Published on 30th January, 2018
Airline loyalty programs are too heavily skewed towards “true frequent flyers”. Is it time for full-service carriers/ alliances to open up their proposition to the segment of infrequent travellers? Be it for such move being fuelled by the need to grow the program further or being creative enough to include the segment of infrequent travellers to capitalize on the opportunity, it is being asserted that it’s time airlines look into this issue. So how about serving a passenger who doesn’t travel 30 times but say 10 times, and adding them in the loyalty-fold.
As Comarch’s Piotr Kozłowski, VP Consulting, Airline, Travel Loyalty, highlighted during the recently MegaEvent in Palm Springs, California, there is a high-yield traffic of “very frequent travellers” and for them association with the brand is about comfort, privileges and they are looking for status recognition rather than rewards. The second set is of “frequent travellers”, who have high purchasing power, are looking for recognition and privileges, in search for broad accrual possibilities, combining various loyalty programs (FFP and retail) to achieve economy of scale effect. And then there is a group of occasional travellers or infrequent ones that are not being addressed by a typical loyalty program. “They tend to be the target of multi-partner loyalty schemes, they are eager to gain a variety of accrual and redemption options, have desired redemption on award flights,” said Kozlowski. FFPs require strategy for this segment in order expand their customer base and market position.
How to open up the proposition for such set of travellers? Hear from Kozlowski, who also spoke about learnings from Norwegian’s CashPoints, in this video.
For Ai’s 2018 Events, check - www.aieventdates.com
Follow Ai on Twitter: @Ai_Connects_Us