Points trends for 2015
The 5 trends in the loyalty program space:
1) New partnerships and closer loyalty ties between Airlines.
- Towards the end 2014, we saw the new innovation between Singapore and Virgin Australia to allow points transferability between their respective frequent flyer programs. This was an industry first and sets the scene for more of the same. The trend is an exciting development giving consumers more points flexibility and hence makes their points more valuable and useful.
- I see that airlines will expand their frequent flyer program transferability into their low-cost (LCC) subsidiaries, and their close partners
2) Extended partnerships between Hotels and Airlines
- The Starwood crossover rewards partnership was extended, initially with Delta and expanded to Emirates. This unique arrangement allows consumers to ‘double-dip’ on points. Fly and get airlines points and SPG hotel points too, Stay at Starwood Hotels and get SPG points and airline points too.
- I see SPG as the most innovative hotel loyalty program at this point.
3) Points points points – The opportunity to earn points will be everywhere
- A Strong push by the airlines to offer the ability to earn points across even more channels, last year Qantas launched the Qantas Mall, Qantas Golf, Qantas Aquire program. Virgin launched a deal with Aussie Home Loans and BP Fuel outlets. Singapore launched the Singapore Spree (online mall).
- Points will be used as a marketing tool to differentiate between vendors. The savvy consumer or businesses can now get something for nothing. But not to be fooled, nothing is really free, these rewards are being built into the price of the good and services, so it is a case of missing out on their fair share if consumers or businesses opt out of the rewards game. But the savvy can optimise their rewards and overachieve with a thought out points strategy.
4) Enhanced linkage into the Chinese airline frequent flyer programs
- As travel into China for leisure or business intensifies, I see there will be an enhancement of the Chinese airline frequent flyer programs, either with new credit card partners or awareness of the programs. Currently Air China, China Eastern and China Southern are mainly competing on price vs. the major airlines, while they have the advantage of flying direct into the Chinese cities.
- At the moment, I see the Chinese frequent flyer programs are relatively immature and unaware of their marketing potential compared to the established USA airlines and Qantas/Virgin.
5) A fourth ‘alliance’ and loyalty program emerging
- As reported on Travel Weekly last year, the creation of Etihad Airways Partners with Air Serbia, Air Seychelles, India’s Jet Airways, Darwin Airline and Etihad Airways, may be the baby steps towards a fourth airline alliance.
- This creates a new opportunity for a deeper points partnership, but an extension of the frequent flyer points transferability similar to Singapore/Virgin in point 1.
With thanks – Steve Hui, Founder and CEO of www.iFLYflat.com.au, Steve runs a global rewards points optimisation consultancy, helping businesses owners to optimise their points to fly.
Email the Travel Weekly team at traveldesk@travelweekly.com.au
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