Archive for Loyalty

What the $15 Billion Virtual Goods Market Can Teach Airlines and Hotels

As I chatted with my friend in Europe well into the night last night on my iPhone, I accidentally stumbled into the “store” of the LINE app I was using to conduct the chat. With the click of a button, I could buy entire volumes of cutesy “stickers” featuring some cartoon-like character that I could […]

Points for Thoughts: Virgin America’s Quest to Know its Customers

Despite the longtime popular awareness in marketing circles that communication is a two-way street, I’m still amazed at how many airline marketing strategies revolve exclusively around push messages. Most of the communication that reaches me is one-way: “we (the airline) are offering you X/flying to Y/or introducing Z.” But quite honestly, nine times out of ten, […]

Video Posted: Airline Business NCM London

It took a few days, but we’ve finally managed to upload the video of Steven Klimek’s presentation from Airline Business’ New Commercial Models, Retailing and Merchandising conference in London (delay courtesy of poor hotel wifi connections). The presentation below is entitled “Social Distribution 2.0(12)” (get it?), and the screen presentation can be found in its […]

Why Airlines Need to Reconsider What “Loyalty” Is Today…

Repeat customers may indeed be more valuable to an airline than new customers over time, as they represent a steady stream of revenue at a reduced acquisition cost. But how much revenue does a carrier need to give away for “loyalty” before the economic benefit of repeat versus new customers is flipped around? The goal […]

We’re Making History!

Hi folks…can’t write much on this one, as I just completed the longest travel day of my life. In the process of getting from Singapore, where I began the “day”, to Granada, Spain….I managed to touch the ground in Seoul, San Francisco and Frankfurt.  Fortunately, since I can survive off of jet fuel, I’m here […]

Etihad Guest Introduces “Gold Elite” Tier, but What’s Next?

So, I got a sweet little “Dear Steven” message in my email today, to announce Etihad’s new “Gold Elite” frequent flyer program tier. This gives Etihad Guests members who earn 125,000 miles a year, or fly 60 segments, some additional benefits, most of which you can probably guess (better seats, lounge access, yada, yada, yada). […]

Hooray, So You’ve Got A Loyalty Program…Now What?

Frequent flyer programs (FFPs) are expensive. With a total value of outstanding miles in the hundreds of billions of dollars, not to mention the operational costs of implementing, managing and promoting the program, the fact that every major carrier has a loyalty program obviously means there isn’t much debate at the executive level that the […]

Customer Engagement Strategy for the Airline Industry