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Airline (Frequent Flyer Programs) |
"We at Delta and as an industry cannot continue to have customers earn a significantly greater number of miles year after year without providing customers some flexibility in ways to use those miles," Jeff Robertson, Managing Director Delta SkyMiles. "Delta program members earned 27% more miles in 2007 than in 2004, yet the capacity allocated for award seats remained flat."
Airlines' new cash cow: Frequent Flier Programs
Industry ChallengesAirlines earn fortunes by selling frequent flyer miles to marketing partners. The problem is, that the frequent flyer mile is now but one player on a crowded field. The market has matured and so have the choice and refinement that go along with that. Credit card and hotel loyalty programs are in hot competition. Current concerns for the industry include:
- Decreasing value of frequent flyer miles
- Reward seat availability (incl. planned capacity reductions)
- Decreasing / stagnating miles sales to partners
- Decreasing frequent flyer satisfaction
- New accounting standard (IFRIC 13)
- Frequent Flyer Program spin-offs
The Loylogic ApproachLoylogic develops modular, scalable and international reward solutions for planned or existing frequent flyer programs of established network carriers, as well as low cost carriers (LCC) worldwide.
Key Features:
- Higher miles value at unchanged costs (Loypay™)
- More rewards including non-air travel (Loynet™ )
- Personalized reward experience (Loyshop™)
- Worldwide reward delivery (Loymart™)
- One electronic interface
Key Benefits:
- More valuable loyalty currency than competitors
- Increased flight sales revenues (volumes, price)
- Increased miles sales revenues (volumes, price)
- Ability to steer deferred revenues (IFRIC 13)
- Increased frequent flyer satisfaction
- Easy-to-integrate IT solution
Download
 Loylogic - Survey Frequent Flyer Preferences Freddie Award 2008
Loylogic - FFP White Paper_Reinforcing the value of frequent flyer miles
Click here to discover more about our reward solution.
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