LOYALTY&REWARDS PROGRAMMES ARE NOW MUCH MORE VALUABLE FOR AIRLINES THAN BEFORE!..

Almost all airlines have a loyalty programme yet not all pay enough attention. Or at least it was the case till the pandemi broke out.

The number of airlines realising the true value of this once underrated business is becoming more and more every day.

According to an analysis by the Financial Times, “ Delta’s loyalty program is worth $26 billion, while the airline itself is worth $19 billion. United Airlines’ MileagePlus is valued at $20 billion, while the airline is worth a measly $10 billion.

And the world’s largest airline by fleet size, American Airlines, can thank its passengers for its $24 billion valuation of AAdvantage, four times the value of the airline itself. “ Hence a new leverage for airlines to obtain collateral to stay afloat through the current crisis.

Creating and managing loyalty schemes in more than 20 different sectors in BIGGLOYALTY, we could not expect less.

If data is gold, all airlines should leverage this asset to generate cash, value creating projects such as trendy Miles+Cash E-commerce shop.

Historically airlines were leveraing their Miles and creating some cash flow as below;

i)                    Co-Branded Credit/ Debit Card projects

ii)                   Miles redemption partner sales

In BIGGLOYALTY we think airlines have to get much from this ancillary revenue source by launching their own E-commerce shops, in addition to selling their miles to business partners.

In this new redemption channel, one of the biggest opportunities is to make use of the e- commerce feature where members can shop not only by their miles but also by their credit cards.

The Turkish Airlines, SHOP&MILES programme managed by BIGGLOYALTY is a good example of this. Lufthansa, WORLDSHOP relies on the same idea as well where the airline benefits from the e-commerce trading opportunities.

If you also think it is the high time for your similar AIRLINE LOYALTY programme, drop us a mail at:  info@biggloyalty.com