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 […]

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