LOYALTY POINTS
AIRLINES ARE SURPRISINGLY SHY OF ADMITTING TO COURTING MEMBERS
Although longer journeys are more
expensive, revenue and mileage-based rewards do not work out the same; tickets from London to Rio and Tokyo (both around 9,000km), for example, would cost different amounts and, because points are calculated on fares less taxes, businesses spend more than travellers are rewarded for. Unusually, however, both airlines and buyers see the change as positive. It removes the inequity created by rewards based on kilometres flown and booking class, and it rewards organisations that spend a lot on air fares. It might, however, act as an incentive to rogue travellers to book late in order to pay a higher fare and be rewarded for it. It’s swings and roundabouts. Airlines have also ensured travellers can earn without leaving the ground and credit card partners are particularly popular. “The primary intent of a co-branded card is to provide the opportunity to earn on everyday spending, such as grocery shopping, daily coffee, and it gives the individual a way to earn significantly more of that currency,” says Seward, although he admits: “The decision whether to use a loyalty card or corporate card is always there.”
AIRLINE ALLIANCES Meanwhile, with more airline partnerships being formed, and alliances in general gaining more clout, it is surprising that there is currently no single loyalty programme that operates across one alliance. However, participant airlines recognise the members of each other’s programmes and travellers can generally choose which currency they earn in. And with airline distribution becoming more complex for travel buyers, even taking NDC out of the equation, thankfully airlines remain booking-channel agnostic when it comes to allowing travellers to accrue their points for miles – for now. This is a big difference compared to hotel loyalty schemes, which notoriously tempt their programme members to book direct for in return for extra rewards. In fact, airlines are surprisingly shy of admitting to courting members, although
buyingbusinesstravel.com
they do say they poll them to ensure the programmes continue to match members’ requirements and expectations. “While the benefits offered with our customer loyalty programme go a long way to recruit new customers, we also run appreciation and celebration events throughout the year to ensure our customers know how valuable they are to us,” says Benedicte Duval, general manager UK and Ireland, Air France. Lufthansa Group, meanwhile, also
pays back loyalty in its own way: “We invite customers and travel managers to breakfast meetings to introduce them to our team and discuss how the programme can best support them in their business travels. To keep up to date about special promotions and news, we offer customers a regular newsletter,” says Andreas Koester, senior director sales UK, Ireland and Iceland.
Loyalty schemes continue to evolve and
compete in their quest to attract travellers. Being pragmatic, finding the right corporate programme for employees and encouraging its use is the most positive way towards achieving compliance and keeping travellers happy in the process.
LOYALTY UPDATES
Virgin Group and Virgin Atlantic will launch Virgin Group Loyalty Company in 2019, co-owned by Delta Air Lines. Virgin Atlantic’s Flying Club members will be able to boost points across Virgin’s portfolio. Meanwhile, Air Canada
plans to buy Aeroplan from Aimia, transforming it into the carrier’s own loyalty programme from 2020. Elsewhere, Qatar
Airways’ QBiz scheme has closed. A new loyalty pro- gramme will launch soon. In the first tie-up of
airlines and a car rental company, Hertz now offers frequent flyer points for renting a vehicle to cus- tomers of the 20 SkyTeam member airlines.
COLLINSON’S TIPS: MAKING THE MOST OF LOYALTY POINTS
THINK STRATEGICALLY: Join the corporate
programme that gives you the greatest coverage across the airlines and routes your employees utilise most often, ensuring the greatest opportunity for earning and redemption. Focus on one primary carrier within an alliance, offering co-branded credit cards, and with the lowest threshold for earning elite status.
START SOCIALISING: Follow the airline’s
social media accounts to find out about promotions and offers; this can also be a responsive channel for traveller issues.
MIX AND MATCH: Ensure your employees
are enrolled in the airline’s consumer frequent flyer programme, so they can earn miles and take advantage of other benefits.
2018 NOVEMBER/DECEMBER 95
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