Frequent flyer programmes have been helping to wing us around the globe for more than 30 years. Now, airlines are switching their programmes from ‘miles travelled’ to ‘money spent’ in droves. All About Loyalty looks at three of the biggest airline Loyalty Programmes currently operating within Ireland and at how they are attempting to retain passengers.
MILE HIGH CLUB
The airline industry was the first to practice loyalty by offering frequent travellers free flights when Western Direct Marketing pioneered the programme for United Airlines in 1972. It laid the basis for the airlines programmes that we know today. American Airlines followed suit to create the first major airlines loyalty programme in 1982, American Airlines Advantage.
Non-US airlines were initially sceptical of introducing these loyalty programmes as they feared it would dilute the exclusive image associated with flying at the time. But before long, most airlines had rolled out loyalty programmes and today there are more than 70 frequent flyer programmes worldwide with many global alliances making it easier to collect points and receive rewards for travelling globally.
AIR MILES OUTLOOK
Loyalty programmes are evolving into something that is much more inclusive – not just rewarding business customers and high frequency customers. Offering members the chance to earn reward points for flights, including their air partner brands, as well as earning points across multiple ways such as encouraging family members to fly and sign-up.
Members are given options on how they want to use their earned points across various ways such as on flight upgrades, airport lounges, airport services and across a wide selection of partners in retail, hotel, car rental and finance.
Such flyer loyalty programmes continue to drive new levels of member behavioural change, while generating a wealth of knowledge from both transaction data and insights. All helping to strengthen the offering to members and the ability to build deeper and relevant customer relationships.
Aer Lingus was a member of the Oneworld alliance until 2007 but is now no longer a part of any global alliance, instead having a handful of partner airlines. The airline is home to Ireland’s only homegrown airline programme Aer Lingus’ Gold Circle, which has been operating since 2004 and now has over 300,000 members across 39 countries. Benefits are available to Gold, Prestige and Elite members.
Members can redeem points for Reward flights with Aer Lingus and the airline’s partner airlines and use points to upgrade an existing economy booking to business class on transatlantic services. You can also redeem points for a selection of gifts or vouchers from Aer Lingus’ retail partners, Brown Thomas, Appleby Jewellers and Arnotts.
“Most Aer Lingus fares automatically qualify for points and sale / discounted fares qualify for points if the Plus Fare option is selected” says Mike Rutter, Aer Lingus Chief Revenue Officer. “Points for travel on Partner Airlines are calculated based on the carrier / route and fare class purchased.”
The programme has not been well reviewed: particularly because redemption for flights is quite high and you must still pay taxes and admin fees for flights. To retain membership you have to earn at least 2,400 points in a year and business class flights gain ‘bonus points’, which are not included in the required membership points. Due to ongoing developments within the organisation it seems that any major shifts in the programme have been put on hold.
British Airways partnered with Avios in 2011 to replace its original rewards air miles and BA Miles programmes. Avios was awarded the Best Loyalty Programme of the Year at the 2013 Loyalty Awards in London.
In early 2014, Gavin Halliday formerly of British Airways took over as managing director of Avios. He said, “I am energised by the opportunities open to Avios, both in terms of global market expansion; working with key strategic partners and offering members great value travel rewards.”
Robin Glover-Faure, head of short-haul at British Airways, said: “Our most loyal customers in the Executive Club have told us they want more ways to use their Avios and this new option is in response to that feedback. It enables them to realise real cost savings – as much as 38 per cent off in some cases – on European flights, so flights to somewhere like Barcelona could cost as little as £48 return and 4,500 Avios for someone on a hand-baggage only fare. We believe this will prove very popular with customers and should result in more people being whisked away!”
At the beginning of 2015, Avios faced criticism for changes to the programme, which slashed by 75% the airmiles the cheapest economy class tickets will earn, while giving business and expense-account flyers more rewards. Supply for flights is managed through blackout periods for more popular times and routes. This means that many routes are almost impossible to book using points alone. You also have to pay taxes, fees and carrier charges on flights bought with miles – adding more than €400 to a London-New York flight. To get the most value on your points, Avios have recommended in the past that you buy cash tickets and use your points to upgrade.
Emirates operate out of the $4.8 billion Terminal 3 in Dubai International Airport – the largest airport terminal in the world. The airline began a direct Dubai-Dublin flight in 2011. Skywards is the airline’s award-winning frequent flyer programme and was launched in 2000 – now more than 10 million members have signed up to the programme.
“Skywards is open for everyone to join and offers four tiers of membership – Blue, Silver, Gold and Platinum – with each tier providing a selection of exclusive offers and privileges,” says a Skywards representative.
Programme members earn Skywards Miles whenever they fly Emirates or select partner airlines, such as Qantas, as well as when they use the programme’s designated hotels, car rentals, financial, leisure and lifestyle partners.
Emirates Skywards has consistently been ranked as one of the best frequent traveller programmes for many years. Its impressive list of partners is certainly a big draw for many frequent flyers. Other major draws include the Family Bonus programmes that allows you to register up to eight immediate family members and when one of the eight flies on Emirates, you will earn 20% of their miles.
Aer Lingus Gold Circle
British Airways Avios
How to earn miles (other than on airline flights)
|Aerlingus Airways flights, partner airlines (BA, Cathay Pacific, Qantas, United and on Jetblue Airways.)||British Airways flights, partner airlines and across their global network of hotels, retail (i.e. Tesco Clubcard), BAA credit card, Shell Service Stations etc.||Emirates flights, partner airlines and across their large global network of financial, hotel, rental car and retail partners.|
Air miles lifetime
|36 months.||36 months.||36 months.|
Points plus cash option
Linked to credit cards
|Gold Visa Business Card Bank of Ireland.||British Airways American Express Credit Card, Lloyds Duo Credit Cards.||Al Ahli Bank of Kuwait, Citibank, Emirates Islamic Bank, Emirates NBD, MBNA or Standard Chartered Bank India.|
What you get at the top tier:
|– Dedicated reservations and
– 4 one-way complimentary upgrades.
– 1 free roundtrip.
– Companion ticket.
– Booking on full flights.
– Access to lounges.
– Partner membership of the
Gold Circle Club at Gold
– Priority baggage for
|– Transfer Avios for free
– Priority reward.
– No booking or service fees
– 100% bonus Avios on
– Use of first class desk.
– Upgrade for two voucher.
– Gold Upgrade vouchers.
– One gold executive club
partner card and two silver
– Access to lounges.
|– First Class check-in and baggage
– Access with guests to the
Emirates First Class Lounge in
Dubai and worldwide lounges
– 75% bonus Skywards Miles
when you fly with Emirates.
– Gold ‘Partners Card’ for a spouse
– Guaranteed Business Class
– ‘Last Seat’ Flex reward tickets
even on high-demand flights.
– Access to lounges.
– Personal travel coordinator.
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