SUSTAINING LOYALTY IN A COVID WORLD: HOW AIRLINES CAN ENTICE AND REWARD CUSTOMERS, WHEN FEWER ARE TAKING FLIGHTS The aviation industry has been hit harder than nearly any other industry during the ongoing COVID-19 global pandemic and was recently declared by IATA to be having its worst financial year ever. Debates continue about how to make travel safer, cleaner, and more secure. Despite reassurances from airlines, much of the flying public is still weary of air travel. In a world with fewer flying, how will airline loyalty programs keep their members engaged and feeling rewarded? Two possible solutions lie in local destination holidays and airlines exercising flexibility. Ultimately though, how airlines communicate with customers during this time will be more important than anything. Destination: Local As many across Europe, the US and Asia are looking to book summer holidays, airlines have to consider that local destination holidays will be a hot topic in the coming months and year. Be it due to government restrictions, border closings or just general caution, the mantra for summer 2020 is quite likely- stay local, holiday local. Therefore, it would be prudent for airlines to explore local rewards as a way for members to earn and redeem points. Instead of advertising the Maldives on miles, maybe it’s a 5-star getaway to Manchester or a virtual Roman cocktail making experience from home. Collaboration between airlines and train operators may also be on the horizon. Air France, recently given €7 billion of state aid, has been told to not compete with the high-speed train service TGV when the journey is less than 2.5 hours. Though this may lead to a decrease in passenger numbers on Air France flights, the airline should consider encouraging loyalty amongst passengers with train travel based rewards. In the hotel sector, IHG has partnered with dozens of airlines to allow for accrual and redemption of miles at their properties. (A full listing is found here: Earn Miles with IHG® Rewards Club Partner Airlines) For those not flying at the moment but still looking to earn or burn miles, hotels- even in your own region- can be a viable option.
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AMM - July 2020
