Tag: Airlines

15
Jun

How Airlines Can Strengthen Loyalty & Ancillary Revenue for FFPs through a Travel Club

How Airlines Can Strengthen Loyalty & Ancillary Revenue for FFPs through a Travel Club

What led the airline industry to introduce the original “frequent flyer program” (FFP) concept? Remember, this was long before retailers popularized the “loyalty program” concept. But airlines understood that travel is a unique product that could appeal to a much wider consumer audience, given the right rewards and incentives to travel more frequently and with one airline. It was key for airlines to partner with non-travel brands to leverage those partners’ existing customer relationships (or nowadays, their user base of online shoppers), all of whom are ready and eager for targeted, personalized and discounted travel products. Airline FFPs have evolved far beyond their original points and miles schemes and today are at the center of a sophisticated travel ecosystem– which includes credit card companies, retailers and so many others using the appeal of travel and lifestyle benefits to help sell their non-travel products and services. Travel is both a necessity and a luxury, which makes it an ideal product to sustain added-value ecosystems such as FFPs. Travel and lifestyle clubs are a specific and unique added-value offering within the FFP ecosystem, helping airlines attract and engage high-value FFP members – those that value benefits that augment or enhance travel as…

08
Jun

How Non-Travel Groups Can Benefit from Travel Clubs and the Sharing Economy

How Non-Travel Groups Can Benefit from Travel Clubs and the Sharing Economy

In the past ten years, services like Airbnb, Lyft and Uber have gone from being the cool/new “disruptors” to being the face of a new economy – a “sharing economy,” as it’s called. The concept is really simple: identify underused assets such as private vehicles, spare bedrooms or excess travel inventory and create a private market for those assets online. This opens up an “ecosystem” that allows third-party brands or organizations to harness their customer/user base and give them access to discounted products and services online. The travel industry helped pioneer this opportunity through frequent flyer programs that generate cross-brand engagement and loyalty. In the case of travel and lifestyle clubs, members pay a monthly or yearly subscription fee for discounted access to travel and lifestyle benefits – such as premier lounge access, emergency medical evacuations and travel insurance. In return, those organizations add new revenue from subscription fees, strengthen loyalty with existing members, and attract new customers by aligning their brand with exclusivity and world-class products and services through a private club. Best of all, the organization doesn’t have to lift a finger outside its core business or mission – online clubs can be offered “as a service” and…