fixing airline loyalty programs

00 Wnsdecisionpoint.comwnsdecisionpoint.com

Fixing Airline Loyalty ProgramsRethink, Revise, Reward

11 Wnsdecisionpoint.com

Airline loyalty programs with high potential customer appeal help in propelling airline traffic and revenue*

Loyalty programs and implications on airline traffic – a snapshot

Loyalty programs and implications on airline traffic – a snapshot

For detailed analysis of airline loyalty programs and its impact on operational and financial parameters, please download the full report

* WNS DecisionPoint™ examined the potential customer appeal of loyalty programs for airlines by interviewing and conducting research on 75 airlines across the globe

In the developed markets, airlines with high potential customer appeal of loyalty programs have fared better consistently with the highest median revenue growth among legacy carriers over 2010-14

In 2014, airline loyalty programs with high potential customer appeal in the developed markets saw the maximum decline in sales and marketing expenses as percentage of revenue (median ~ -0.41pp) compared to those with medium and low potential customer appeal

Low Cost Carriers (LCCs) in developing markets are performing better because a large portion of the market is extremely price sensitive and a significant percentage are first time flyers

https://www.wnsdecisionpoint.com/our-insights/reports/detail/49/fixing-airline-loyalty-programs


Major changes to loyalty/rewards programs are required as airlines strive to attain a delicate balance between business needs and passenger satisfaction

59% of survey respondents criticized the insignificant number of points that travel costs and miles translated into

43% of the respondents complained about points translating to meager rewards

Nearly a third of respondents, of which 84% have held a loyalty card for more than 5 years, claim that benefits of loyalty programs are diluted

Of respondents having trouble redeeming their loyalty points, 58% said they are unlikely to speak highly of the airlines’ loyalty program to friends/family/colleagues

*WNS DecisionPoint™ administered a worldwide survey among airline loyalty card holders to uncover the challenges they face with respect to loyalty programs

To read the findings of the survey, please download the full report

Voice of Customer

Be more loyal to travelers who are

loyal. Be more user-friendly

Render less restrictions at the time of redeeming points. It is quite difficult to get airline of one’s choice even

months in advance!

I don't think airlines value their customers - the rewards are ridiculously low especially when considering offers from

competitive airlines

For points redemption, be more user friendly and less restrictive. Add more options of travel destinations one can

choose from and do not charge exorbitantly for points/miles redemption

Make the T&Cs clearer and easier to understand



Dynamic, customer-centric loyalty programs become essential as the aviation market in developed economies mature further

But how can airlines make their loyalty

programs dynamic and customer-centric?

To read more about the details of loyalty program strategies, please download the full report

By identifying profitable customers by forecasting

future revenue and participation frequency in loyalty

programs and allocating segment specific rewards?

By promoting simpler and effective operating

environment for airlines, their partners and customers?

By catering to underserved segments like leisure

travelers by adopting a differentiated approach to loyalty

program management?




A credible insights hub for companies looking to transform their strategies and operations by aligning with todays realities and tomorrow’s disruptions.

Email: [email protected]: wnsdecisionpoint.com

@WNSDecisionPt

WNS DecisionPoint

WNS DecisionPoint

http://www.wnsdecisionpoint.com/

fixing airline loyalty programs

Data & Analytics