Airlines Reward Travel More Attractive

October 27, 2009 on 6:38 am | In Airlines | Comments Off


Shop with your points and miles at Points.com

Delta Air Lines, Alaska Airlines, and Aeroplan are trying to make frequent-flyer programs more attractive to consumers and investors. These companies realize solutions must be implemented to mitigate the effect of capacity cuts on reward travel. Rather than wait for frustrated frequent fliers to stop using co-branded credit cards, these airlines are making changes to ensure frequent-flyer programs continue to deliver big revenue from the sale of miles and points to partners.

 IdeaWorks analyzed the methods used by these companies to boost reward availability and reduce mileage liability. It found that 2008 reward trip activity for Alaska Airlines increased by 39.5 percent from 2006 levels after the carrier implemented one-way rewards.

Delta’s Pay with Miles feature for its SkyMiles frequent-flyer program breaks through the capacity control barrier for members, while delivering a good profit margin on the sale of miles to partners.

Air Canada spent CAD$248 million (about CAD$0.012 per mile) during 2008 on the purchase of miles from Aeroplan, the standalone loyalty program spun off from the airline in 2005.

www.ideaworkscompany.com/news/industry.htm

No Comments yet

Sorry, the comment form is closed at this time.

Powered by WordPress with Pool theme design by Borja Fernandez.
Entries and comments feeds. Valid XHTML and CSS. ^Top^