Strategy Briefing

Airlines Remaining Relevant: How to Retain Customer Loyalty

Oct 2017

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About This Report

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If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE!

Airline loyalty programmes are some of the oldest and most established reward schemes in the travel market. Changing customer demands and needs, as well as technological innovations, have forced these establishments to transform their structures and embrace change, albeit at a different pace. This report reviews the developments within major airline loyalty programmes, and their implications for the end user.

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Overview

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Gain competitive intelligence about market leaders. Track key industry trends, opportunities and threats. Inform your marketing, brand, strategy and market development, sales and supply functions.

Airline loyalty programmes are embracing change, but at a slow pace in light of the numerous disruptors in the travel industry and the changing nature of ultra-connected customers

Revenue-driven strategies and costly co-branded cards, once seen as the main tool to deliver profitability, are no longer the right answer to retain and convert passengers into loyal customers. Brand engagement, rather than high breakage (ie unredeemed points), simplicity of the services, customisation and a bigger focus on the social media element, as well as experiential-based brand relationships are of essence for the success of reward schemes.

The complexities of air travel can be eliminated by fully digitalising loyalty schemes

This can in turn serve as the basis for data analytics, which can inform better customer profiling. Innovative technologies can help deliver instant real time information, feedback and response, but equally bring service that is in tune with customers’ needs.

Increasing competition from new airline players, airports and financial providers in the airline segment

This puts more emphasis on the need to differentiate. Unique and creative rewards can attract customer attention, not only repeat customers but also occasional travellers.

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Introduction

Scope

Key findings

Trends Shaping Airline Loyalty

Technology impacting loyalty

Customer loyalty deconstructed

“ Loyalty beyond reason” through emotional connections/experiences

Apps as a tool for more direct communication and services

M-commerce: A new driver of loyalty

Smartphone penetration going strong in key markets

Loyalty through digital wallet…

…but it is a fickle business

Co-branded cards and airline rewards

Co-branded cards and airline rewards (cont’d)

Credit card loyalty lounges: More competition in the market

Airport loyalty programmes: Friend or foe?

Influencing customer behaviour and preferences

Personalisation vital component for loyalty schemes

Loyalty rewards for the occasional traveller

Best in Class Examples

Customer service: A must for Southwest

Southwest: Rapid Rewards – The best loyalty programme in the US

American Airlines loyalty programme: Fully revenue based

American: AAdvantage revamped

Singapore Airlines: Loyalty first and foremost

Singapore Airlines: Krisflyer can help expand customer base

Singapore Airlines: Krisflyer market segments

Lufthansa: Using technology to gain competitive advantage

Lufthansa: Building partnerships

Lufthansa: Innovation all the way

Qantas: Thinking out of the box about loyalty

Qantas: Loyalty overtaking ticket sales

Qantas: Ambitious plans

Qantas: Major business focus

Enhancing customer experience

Air France-KLM: Digital transformation

IAG: Consolidating all loyalty schemes under one umbrella

IAG: Creating repeat experiences

IAG: Synergies between Avios and independent loyalty programmes

IAG’s Hangar 51 vs Lufthansa’s Innovation Hub

Future Outlook

Major takeaways

Appendix: Competitor Analytics

Competitor Analytics tool

Overview

Competitors

Market Overlap

Treemap

Overlap Matrices

Appendix: Industry Forecast Model

About Euromonitor International’s Industry Forecast Model

Soft drivers and the Industry Forecast Model

Growth decomposition explained

Significance and applications for growth decomposition

Key applications for Industry Forecast Models

Why buy this report?

Want to find out more about this report?

Request more information

Megatrends

Strategy Briefing

Airlines Remaining Relevant: How to Retain Customer Loyalty

New Report Guarantee

About This Report

New Report Guarantee

Overview

Why buy this report?

Airline loyalty programmes are embracing change, but at a slow pace in light of the numerous disruptors in the travel industry and the changing nature of ultra-connected customers

The complexities of air travel can be eliminated by fully digitalising loyalty schemes

Increasing competition from new airline players, airports and financial providers in the airline segment

Want to find out more about this report?

Table of Contents

Introduction

Scope

Key findings

Trends Shaping Airline Loyalty

Technology impacting loyalty

Customer loyalty deconstructed

“ Loyalty beyond reason” through emotional connections/experiences

Apps as a tool for more direct communication and services

M-commerce: A new driver of loyalty

Smartphone penetration going strong in key markets

Loyalty through digital wallet…

…but it is a fickle business

Co-branded cards and airline rewards

Co-branded cards and airline rewards (cont’d)

Credit card loyalty lounges: More competition in the market

Airport loyalty programmes: Friend or foe?

Influencing customer behaviour and preferences

Personalisation vital component for loyalty schemes

Loyalty rewards for the occasional traveller

Best in Class Examples

Customer service: A must for Southwest

Southwest: Rapid Rewards – The best loyalty programme in the US

American Airlines loyalty programme: Fully revenue based

American: AAdvantage revamped

Singapore Airlines: Loyalty first and foremost

Singapore Airlines: Krisflyer can help expand customer base

Singapore Airlines: Krisflyer market segments

Lufthansa: Using technology to gain competitive advantage

Lufthansa: Building partnerships

Lufthansa: Innovation all the way

Qantas: Thinking out of the box about loyalty

Qantas: Loyalty overtaking ticket sales

Qantas: Ambitious plans

Qantas: Major business focus

Enhancing customer experience

Air France-KLM: Digital transformation

IAG: Consolidating all loyalty schemes under one umbrella

IAG: Creating repeat experiences

IAG: Synergies between Avios and independent loyalty programmes

IAG’s Hangar 51 vs Lufthansa’s Innovation Hub

Future Outlook

Major takeaways

Appendix: Competitor Analytics

Competitor Analytics tool

Overview

Competitors

Market Overlap

Treemap

Overlap Matrices

Appendix: Industry Forecast Model

About Euromonitor International’s Industry Forecast Model

Soft drivers and the Industry Forecast Model

Growth decomposition explained

Significance and applications for growth decomposition

Key applications for Industry Forecast Models

Why buy this report?

Want to find out more about this report?

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