What innovative approaches would you use to differentiate your airline's loyalty program from competitors'?
In the competitive skies of airline management, loyalty programs are your golden ticket to securing repeat customers. But with every airline offering miles and occasional upgrades, how do you truly stand out? To keep your passengers loyal, you need to think outside the traditional rewards box. Innovative approaches to your airline's loyalty program can transform a frequent flyer's experience, making them choose your airline time and time again.
Imagine earning miles not just through flying but by engaging with a network of partners that align with your lifestyle. Your loyalty program could include collaborations with fitness apps, where miles are earned with every step counted, or with gourmet food delivery services that reward you for indulging in fine dining at home. This approach not only broadens the appeal of your program but also integrates seamlessly into daily life, strengthening the bond between your brand and your customers.
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Beyond what has already been shared, avoid shameful devaluations similar to what United did. The absence of communication prior to them reducing the value of the program by 30% was distasteful.
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Paul Woolley
On Sabbatical
(edited)Airlines use many strategies to differentiate their loyalty programs. In my opinion, big must do’s are: miles dont expire; no blackout dates; and 'give miles no matter what the fare'. Yet, the single most effective way to establish your airline is: Customer Experience. Dont just be a Flight Attendant; Change a passenger's perspective on flying. Be more than a check in agent; Be an Ambassador. Go beyond...bend the rules sometimes.. Talk to people at the boarding gate....dont keep announcing on the loud speaker when and how you are going to board.....look at the dynamics of your guests...and go talk to them! Do this right and you have a customer that will fly your airline forever....
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In today world, there are hundreds airlines loyalty programs. To be unique among competitors, airlines needs to align the loyalty program to tourism industry around the world. Offering free tickets, hotels, events tickets…etc. airline strategy must be shifting from focusing on cost/mileage to focus on alignment to growth industry worldwide.
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Airlines use many approaches to differentiate their loyalty programs. In my opinion, airlines need to more flexible with the points redemption, making it easier for customers to use their points, such as allow to partial redemption combination with cash, transfer points between members, expand the redemption options to include a wide variety of non-travel rewards, and enhanced opportunities to earning points through everyday purchases via partnerships with a wide range of companies.
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Differentiating an airline loyalty program in a competitive market requires innovative thinking and a deep understanding of customer needs and desires. As an example airlines can consider partnerships with non-travel brands to offer diverse rewards such as lifestyle experiences, exclusive events, dining privileges, and retail benefits. This expands the program's appeal beyond traditional airline perks.
To really stand out, tailor rewards to individual preferences. Utilize data analytics to understand each customer's travel patterns and preferences, then offer them personalized rewards. For instance, a customer who frequently travels to wine regions might appreciate a VIP winery tour, while a beach lover might prefer access to exclusive seaside resorts. This level of personalization shows your customers that you value them as individuals, not just as seat numbers.
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Personalised rewards system in general is weak and ineffective. In my opinion. Airline need to reshape the program to be more strategic such as; providing game tickets for individual who’s traveling with kids, providing free vip dinners for couples…etc. extra points for 3-4 tickets purchase, transfer point to relatives…etc.
Injecting fun into the loyalty experience through gamification can encourage more engagement. Introduce a system where customers can earn badges or levels for different achievements, such as visiting a new destination or flying a certain number of miles. Higher levels could unlock exclusive benefits, making the journey to earn those rewards an exciting game in itself. This strategy can foster a sense of achievement and community among your frequent flyers.
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By introduce elements of gamification into the loyalty program, airlines can enhance the engagement of travellers. This could include challenges, badges, leaderboards, or milestone rewards that make earning and redeeming points more enjoyable and competitive.
Eco-conscious travelers are on the rise, and they're looking for loyalty programs that reflect their values. Offer options to earn and redeem points through sustainable actions, like opting for electronic boarding passes or participating in carbon offset programs. By doing so, your airline doesn't just offer a loyalty program—it offers a way for travelers to contribute to a cause they care about while being rewarded for it.
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Nowadays, travellers are more concerned about their carbon footprint then ever, therefore Integrating sustainability into the loyalty program by offering rewards for eco-friendly travel choices, carbon offsetting options, or partnerships with environmental organizations will appeal to socially conscious of travelers and will foster your airline as a top choice.
Move beyond the usual upgrades and lounge access by offering experiences that money can't easily buy. Think about providing opportunities to attend special events, behind-the-scenes tours of the airline's operations, or even a flight simulator session. These unique experiences can create lasting memories and stories that customers will share, serving as powerful word-of-mouth marketing for your airline.
Lastly, consider implementing dynamic pricing within your loyalty program. Allow customers to use their miles to bid on seat upgrades, special services, or unique experiences. This market-driven approach can maximize the utilization of unsold inventory while giving loyal customers the thrill of winning an auction. It's an innovative twist that adds excitement to the traditional redemption process.
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Looking it from a member's perspective Loyalty Program has three aspects: 1) It provides opportunities for them to Earn points through activity they do with the airline or with its earn partners 2) It provides opportunities for redeeming the points for services from the airline or from its burn partners 3) Status the accumulated points award the member in terms of differentiated service they receive from the airline or its partners The value is in these three things. Hence the best way an airline can differentiate is by having a wide partner network allowing ample opportunities for members to earn and burn points and avail differentiated service. This loyalty network and what it enables is the main differentiator.
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