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7. Airline Loyalty Programme Mgmt (:star: How loyalty programme entice…
7. Airline Loyalty Programme Mgmt
Partners:
Include a variety & as many partners as possible
Tier:
Higher the tier = Additional service benefits & mileage bonuses
:star: How loyalty programme entice & lock in customer?
2. Redemption
Travel Partner Rewards
:
Free airline tix
Hotel & Car rental
Lifestyle awards
:
Restaurant vouchers
Hot Air Ballooning
Donate to charity
Special features
:
Holiday tours
Lounge club membership
Mileage Pooling/Transfer
:
Pool from members to redeem award
Transfer unused/extra for family member
Airline rewards
:
Free flights
Upgrades
Mileage Surplus
:
Only 25% earned miles are redeemed
3. Recognition
Tier Benefits
:
"Road Warrior" highly valued
Looking forward extra service, benefits to make journey easier
Most popular: Upgrades & Lounges access
Status
:
Make member feel 'special'
Upper tier status communicated in CRS & DCS
1. Accrual
Tier bonus
Tactical bonus
:
Newly join
2x miles for specific routes
Cabin bonus
:
:arrow_up: class = :arrow_up: bonus
Partner miles
:
Travel: Airlines itself, Alliances
Lifestyle: Hotel & Car rental, Credit cards, Restaurants
Minimum miles
Mileage Expiry
:
Expires after n^th year
Base miles
:
Award a mile for every mile flown
None for economy class
:star: Concept of mileage economics & How airlines make use of it
Asset or Liability
:
Miles comes at a cost
Miles BEFORE redeem = Liability for airline
Mile AFTER redeem = Cost for airline
Liability needs to be well managed
75% not redeemed
Careful inventory mgmt of 'free seats'
Asset or Liability
:
Earn via Bank credit card instead of flying
(E.g. AMEX, UOB)
Airline charges partners @ profitable rate
(E.g. $0.02)