Airline Loyalty Programs Solutions

What Are Airline Loyalty Programs and How Do They Work?

Airline loyalty programs are designed to help companies accomplish 2 goals, namely:
  • Increase sales;
  • Improve customer satisfaction.
Reward programs commonly involve bonus miles that are granted to clients whenever they qualify for the conditions of the program. They include flying with the company, making purchases on board, paying for tickets with a specific debit/credit card, and buying additional options during a flight, such as added baggage or improved services on board. Customers can also get bonus miles through third parties such as banks or online stores. Loyalty programmes are utilized so frequently because of the simplicity of their implementation and low costs for the company. Customers benefit from them as well since they feel valued and cared for when receiving bonus miles. Free flights increase clients’ loyalty, which raises the companies’ profits in the future.

Loyalty Programs’ Benefits for Companies

Airlines use bonus miles due to their simplicity and cheapness. Implementation of such loyalty programmes is beneficial to an airline as they do not require spending any cash when launched. All rewards for customers will be granted in the future, which allows airlines to cut daily costs. Expenditures on bonus miles are negligible for the companies, especially considering the fact that most people spend them on economy-class domestic flights. Any airline that is willing to thrive concentrates its efforts on making clients fly with it more often, and bonus miles are decisive to this process. When travelers understand that their day-to-day flights can potentially bring them free transportation in the future, they are more likely to fly with this particular company, even if it has higher ticket prices. An airline that utilizes bonus miles correctly has the potential to get more loyal customers at a low price.

How Can Customers Benefit from These Offers?

Frequent flier programmes are particularly profitable to business travelers as they provide more benefits to those who fly more often. Whenever airlines are issuing a complimentary drink or a free upgrade to their loyal customer, they are improving their chances of getting a returning client. Business travelers are also more likely to choose this airline for their future business and personal flights. Loyalty programs are free-of-charge for customers, which implies that anyone can benefit from them. Bonus miles are available to all clients, disregard how much they spend on flying with the company or how often they travel. They are also accessible through third parties such as banks or stores, which means that gaining bonus miles does not necessarily require flying with the company. However, frequent traveling is still a more efficient way of receiving bonus miles in comparison to other means.

Takeaways from the Airlines’ Experiences

Frequent flier bonus programs imply significant benefits for both customers and airlines. Negligible price of bonus miles allows companies to redirect funds to other business activities such as marketing campaigns or expanding available destinations. The main aspect that is required for a successful reward program implementation is assistance from a company with respective experience. Luckily, there is a company that knows how to develop, integrate, and support decent loyalty programs. Loyalty provides comprehensive solutions for businesses of any scale. The company concentrates on collecting and analyzing data to design customized loyalty programs.

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