Truly innovative ways to induce loyalty?
 

This thread was inspired by an In the News topic about JetBlue starting an FF program soon:

JetBlue to announce FF Program
http://www.flyertalk.com/forum/Forum...ML/003883.html

The story's author states that Michael Boyd, president of an aviation consulting firm, expects the frequent flier program to be unique, in line with Neeleman's track record of innovation....

My questions to FTers:

• Given JetBlue's specific business model, what might constitute genuine innovation in its upcoming TrueBlue frequent flier program?
• Generally speaking, what innovations have yet to be widely deployed by travel companies in general (not just JetBlue in particular) to improve the effectiveness of their loyalty-inducing frequent traveler programs, innovations that you think would be effective?
• What innovations have actually been deployed and proven to be effective in the last 5 years?

How about a purely revenue-based program? It boggles the mind that loyalty programs are still based on something as arbitrary as miles flown.

National's ff program is based on revenue. One point for every $10 you spend. You can redeem the points for flights ie a flight cost $100, you will need 100 points. They usually give some percentage bonus for booking flights online.

Revenue-based programs are neither new nor truely innovate -- for example National Airline's "Comps" program is basically revenue based. [National is owned by several casino companies btw, which helps explain certain aspects of their operations]



[This message has been edited by Quokka (edited 03-04-2002).]

Something innovative would be to waive the change fee for top flyers. Perhaps the fee would be waived if the flyer changed res online, and reduced if they do it through res. Also allowing upgrade on award tickets....NW does this. Also no capacity controls on awards....WN does this and SPG. I confess I don't know anything about Jet Blue, so cannot comment on how these changes would match its business model or other innovation. Do they even have F class?

Revenue based frequent-flyer programs have never taken off with the major airlines due to the objection of some major corporations. Many companies prohibit employees from using an airline that would give a direct incentive to flying on higher fares on the companies dime.

There have been a number of posts on FlyerTalk from travelers who were prohibited from flying TWA due to it's revenue based FF program.

Most airlines do have systems in place for higher paying passengers. For example, AA offers elite status on miles flown or Q points. The higher you pay for your ticket, the more Q points you earn.

You need to remember that frequent flyer mileage prgroams offer very little for people who pay to sit up in front all of the time. The true advantage to FF programs is in keeping coach passengers coming back again and again.

Huh? United gives people a 100 percent bonus on their miles if they fly in first and pay for it, and a 50 percent bonus if you fly in business and pay for it.

Now, granted you are paying essentially double what you would pay in fully refundable coach, so it's six of one, half a dozen of another, but still, that kind of bonus has to be worth something.

As for creating loyalty, I'm not sure what any airline could do to create that. I like United because I have friends who work for them, so they haze me if I don't fly them. That is what gets me to fly United more than other airlines, in addition to the fact that they've got a hub in my back yard.

But if United were to charge me double what Delta did -- like was the case when I went down to New Orleans for the Sugar Bowl -- I'm flying on Delta, premier exec status and friendships notwithstanding. When my friends gave me grief about it, I told them, well, get your airline to match within ten percent what Delta wants, and I'll fly you. Otherwise, I'm not eating $250 to fly on United.

Let me try to be more specific. If you paid for all of your travel and only flew in First, your loayality would not be to the airlines but to the schedule. Why in the world would you fly from SEA to ATL on United that requires a change of planes when you could go on Delta non-stop? Why would you fly Delta to Chicago that would require a change of planes when you could take United non-stop?

Flying paid first class gives you all of the benefits that mileage programs shower on their members. The only reason why you might want to stick with a mileage program is if you do not pay for first class tickets and want the miles for upgrades/award travel.

Actually, UA only awards a 50% bonus for paid F and a 25% bonus for paid C.

My loyalty is always to the schedule. That's a big part of the reason that I've racked up miles on United. When they have a hub right in my back yard, I'm going to fly them more because they naturally have more options for me. For example, for my ski trip to Denver at the end of the month, I'm going to catch a 6:40 AM flight on Saturday and return on 6:45 PM on Sunday. They are the only ones who have that kind of a schedule so I'm flying them.

Everyone else makes me switch planes, so is it surprising that I'm flying United?

tango and mdtony, you're talking about two sides of the same thing.

We usually choose our "home" or usual airline because it has the best service to our home city, or to cities that we often go to. For example, in my home city, Portland, United and Alaska are the favorites because of their routes from PDX.

The loyalty factor comes in when we fly somewhere for which our home airline doesn't have the best service: for example, Portland to Palm Springs or Burbank. Alaska flies directly, United doesn't. Alaska's flights serve real food; United's don't. United's loyalty program works if it gets me to choose United over Alaska when I go to PSP or BUR. United's program doesn't work if I simply join Alaska's program as well and fly Alaska to PSP or BUR. I'm leaving out some refinements of the theory, but I think this is as good a test as any of the service.

(And I really enjoyed my Alaska flight to Las Vegas.)

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"Yes, but at least mine will be found in a first class seat." -- Peattie and Taylor