A recent report found that airline loyalty programs worldwide are composed of 288 million active members, collectively earning around 3.5 trillion points per year1. For the top ten airline loyalty programs alone, these points are equivalent to a value of over $90 billion, with estimates for the total worth of all programs running well into the $100 billion mark.
Next time a sales guy shows up in your office and tries to sell you a PSS solution that supports NDC, stop him/her right there and request one clarification: Is the solution you are talking about genuinely achieving NDC objectives and NDC native or merely NDC compliant?
Should we invest in this new NDC native passenger services platform that claims to solve all the distribution problems that we have been worried about?
Loyalty programs traditionally use tiers to segment customers. Each tier is intended to represent a group of customers with similar behavior and value. Tiers, though effective as a recognition and marketing tool, are however created based on only a few aspects such as points earned or amount spent during a finite period like the last one year.
The term gamification refers to an approach where techniques of game design are employed in a non-game context to drive engagement and promote positive behaviour. It has been used in various fields such as employee performance management, training, and customer engagement to varying levels of success.
Mr Liu Yiqian, a Chinese businessman and art collector, paid a whopping $ 170.4 million through his American Express Centurion Credit Card to buy an artwork at a Christies' auction. The transaction earned him 2 billion American Express points (approx. 32 million FFP Miles) enough to do 733 LON – NYC roundtrips in First Class.
Airline industry being very vibrant and with Airlines trying to standout from their counter parts to attract/retain customers, paradigm has shifted more towards Airline Loyalty initiatives. Loyalty programs are considered to be the differentiating factor that attributes to the success of an airline, leading to huge investments in the field.