Airline loyalty programs are one of the most targeted sectors for fraud, as they have enormous personal information on frequent flyers. While loyalty programs can help achieve great business results, fraudsters continue to exploit the programs for personal gain.
The NDC program was initiated by IATA (International Air Transport Association) with the objective of streamlining distribution networks through an industry-level standardization protocol and give airlines greater flexibility to differentiate and sell their products via third-party intermediaries. As NDC gains momentum in the industry, airlines can explore multiple strategies to help them achieve their NDC initiatives such as product differentiation, personalized offers, rich content & ancillaries offers. One way to do this would be to move from a legacy PSS system to a modern distribution platform. However, in doing so, should they look at NDC compliant or NDC native platforms?
NDC brings in great benefits to airlines and customers alike. With NDC, airlines can seamlessly create compelling and relevant offers across all channels, backed by exciting experiences and rich content. Likewise, customers can get access to great offers via any channel, direct or indirect. However, in order to truly assess the business value addition that a NDC native platform can bring to an airline and to create a compelling business case for it, it’s important to understand what NDC can and can’t do for both airlines and passengers and to clearly establish boundaries on what would investing in an NDC native/enabled platform mean for an airline.
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.
Airlines have a long time used the data feed from Departure Control Systems to passively process accruals for their loyal members. The revenue based FFP model promises a better loyalty experience. It is imperative to bring loyalty closer to airlines’ core IT systems, more importantly the revenue accounting system.
Corporate loyalty initiatives are proving to be the differentiating factor for an airline and hence gaining more and more popularity within the industry. This has led to huge investments in the field and also led to the major iinnovative initiatives in the field.