Ideaworks to turn airline loyalty schemes into revenue

Ideaworks’ Jay Sorenson spoke at the World Low Cost Airlines Congress last year, analysing how frequent flier programmes can dramatically increase revenue for airlines. Some of his suggestions included:

• Remain true to your brand identity when considering the balance between ancillary revenue and the value of loyalty.
• Delight (don’t frustrate) your customers with attainable and available rewards.
• Banks are a major revenue source for airlines – make sure you select your partner carefully.
• Tap into impulse buys by selling bonus points online.
• Cultivate reward travellers for a la carte opportunities.
• Consider elite credit cards as pre-paid a la carte opportunities.
• Add incremental revenue by adding an elite tier programme.
• Reinvest a portion of programme profits to continue to grow and improve your loyalty programme.

Have a look at the full analysis and how Jay came to these conclusions by downloading his presentation.