WestJet developing own loyalty program
 

http://www.globeinvestor.com/servlet...b0213/GIStory/

Key points:

• New program is on track to launch in 2009
• WS to ditch Air Miles
• WS to terminate current relationship with Mosaik MasterCard (but might relaunch another BMO card)
• "Borrowing a page from Shoppers' [Drug Mart] playbook, Mr. Durfy said WestJet envisages stimulating travel demand by issuing bonus points to passengers who fly on slower days, notably Tuesdays, Thursdays and Saturdays."

Interesting. I wonder if they'll contract Aeroplan to manage it ;)

I wonder about the costs of reinventing the wheel as I can't imagine it'll come cheap to launch and then build a competing brand to Air Miles. I am, of course, just a layman and not a loyalty program expert...

This scares me. The reservation system thing was a huge failure. I'm a fan of sticking with what you know.

d

Airmiles does NOT get me to fly Westjet.....it does not provide a sufficient reward to make any difference. There are of course other reasons to chose WS but Airmiles is not one of them.

Please don't name the program "Passenger Perks" :D

Indeed, though it is nice to get them anyway from Westjet. I can earn the measly 20 Air Miles by buying 20 bottles of Pepsi from the drugstore - $30 versus the $280 for Westjet.

I guess when they firm up a date will be when I decide to cancel my Mosaik card. Might have to advance plans to burn through my air miles flying the family to Florida on WS.

How many AM's do you earn on WS anyway? I got 100 AM's from Northwest when we flew YXU-DTW-FLL last month. I put my AM number on my wife's Worldperks account and got the 25 each way for both of us.

I would guess that leaving Air Miles would be motivated both by the costs and the benefits (or lack thereof) arising from the current deal. Since it seems everyone and their dog as a reward program of one sort or another, the marginal cost per sale has to be worth it. Air Miles is great for getting instant merchandise rewards but booking travel with them is a real pain.

Well, Westjet did go back to tweaking their existing reservation system for now but it still needs replacing to move forward with their stated strategies. Sticking with what you know is fine until you know that what you know won't cut it for much longer. These sort of integrated information systems have an extraordinarily high failure rate from both functional and performance perspectives across multiple industries. One of the IT magazines I get made a reference to somewhere around 30% or more missing the mark outright and an even higher percentage taking longer and costing much more than budgeted. Wait until AC tries to roll-out their new system - if and when it is ready.

It seems that Air Miles is still a long way from on-line travel bookings, so maybe an independent program is the only way Westjet sees this irritant being removed.

And that's all well and good as I was just wondering aloud at how much this venture would wind up costing and whether it would in reality give WS that much of an advantage relative to the money spent. Sure it would get much more control over promo's and T&C but it won't be cheap to essentially recreate what's already in existence. The unknown is what resistance there would be from avid AM's collectors not wanting to see further dilution of programs should WS adopt it's own. It's MHO that there already too many loyalty programs and there may be some natural reluctance for people to switch should it come to that.

As I've always maintained, this will be a costly exercise for WS and could knock $5-$10 million earnings per quarter for the first year, and build up a redemption liability that will have to be carried on the books. Of course, WS has little option now that they require links to the international carriers for feeder customers, and must provide regular business travelers with some form of perk to stay competitive. A look at both JetBlue and SouthWest will reveal what a basic FF program might be for WS, but both are pretty meagre compared to AE and others in terms of hard benefits. (I wonder how the WS lounge program is doing financially, and if WS has had to subsidize the company operating these lounges?)

It would be great, as I have posted elsewhere in the past, to see a program like Alaska that covers BOTH alliances outside *A. How about piggy back the the AS program with seperate branding WS members.

But I should hope that WS would create a frequent flyer program and not a shopping program like Aeroplan has become. There are many shopping programs in Canada but not many, or arguably any frequent flyer programs :p
I would not be worried what AM collectors think too much, its frequent flyers that count.

And what would be the chances of WS going with a true FFP and not a "loyalty" program? 1 in 10? If, as outlined in OP, Durfy is stealing a page from Shoppers it sure won't be a true FFP but yet another broadly based "lotalty" program. I also think you grossly underestimate the impact of AM but then again perhaps I'm guilty of wildy overestimating it's clout as well. Time will tell...

WS may be greedy when it looks at how “profitable” Aeroplan has become and wants to replicate it.

My guess is that the WS programme will likely be something similar to the Bay’s Rewards, or Diners Club with a link to Air Miles. WS programme holders will earn points by flying WS and may redeem flights on WS or convert to Air Miles to redeem other rewards.

I have found today’s Air Miles to be far less attractive than 3~4 years ago. I have experienced increasing difficulties in booking non-air travel rewards, e.g., hotel and the car rental rewards are simply extremely poor value. I have not tried to book air reward through Air Miles recently but from what I’ve heard second hand from friends and colleagues, it is not easy especially if you’re looking for the special BMO WS Mosaik MC deal. I think the “must stay one Saturday night” restriction is still there.

Correct indeed. This is a cut & paste from the travel reward T&C:

All Rewards offered are subject to the Terms and Conditions of the Program, are subject to change and may be withdrawn without notice. Some restrictions apply.
Collectors must pay taxes, fuel surcharges and other applicable charges and fees on air travel.
Air travel is subject to a minimum 7-day advance booking*, Saturday night stay requirement and availability from participating airlines.
Tickets are for round trip travel only. All travel must originate from Canada or the United States.
Number of reward miles required to be redeemed is subject to verification at time of booking.
Required number of reward miles for entire travel is determined by the outbound departure date.
Required number of reward miles for air travel may be higher if itinerary involves multiple carriers or if involving Non-Partner airline(s)**.
Flight Suppliers may limit length of stay and impose minimum stay.
$20 + GST booking fee will apply on all redemption tickets. Handling fees may also apply.
No cancellations, exchanges or refunds on tickets once booked.
See current Program terms and conditions for complete details.
Insurance is highly recommended and may be purchased from us to ensure the return of unused reward miles to your account. For complete details, please ask our travel agents at time of booking.
* Flights must be booked no later than 6 p.m. Eastern time on the 7th day prior to departure. $20 plus GST handling fee may apply.

** Non-Partner airline carriers are other suppliers of seats which are usually not associated with the AIR MILES® Reward Program.

How they accomplish this with airline who don't have a Sat. night stay anymore, like AC & WS, I'm not sure of.

I guess this only confirms that WestJet will be joining OneWorld by 2009. There is no way to be in an alliance when the company offers no Frequent Flyer Program.

Worstjet web site sucks....... so lets hope they fix that before they waste time on a westjet program.

What exactly do you think is in desperate need of fixing? Not that I use it much, but their website has always been useful for whatever purpose I needed at the moment.

I think that a link to Continental's One Pass programme looks better, as Continental has history with Copa, as a dependant One Pass airline.

Hmmm, seems WS has decided to stick with Air Miles after all, so must think them enough of an advantage to draw customers in to retain 'em:

http://www.newswire.ca/en/releases/a.../02/c9903.html

TORONTO, April 2 /CNW/ - The AIR MILES(R) Reward Program and WestJet
Airlines today announced a multi-year renewal agreement, reaffirming WestJet's
Reward partnership with the AIR MILES Reward Program, and thus continuing to
provide Collectors with the ability to redeem for WestJet flights.
"An AIR MILES reward supplier for eight years, WestJet remains an
important partner in our extensive domestic, transborder and international
roster of airline reward suppliers," says Jill Morison, Vice President,
Rewards, AIR MILES Reward Program. "This agreement provides our Collectors
with significant access to seats on WestJet's extensive network of domestic
and U.S. destinations."
With AIR MILES Collectors booked on more than 1.2 million WestJet flights
since the airline became a Reward supplier in 2000, both the loyalty program
and airline are excited about the opportunities this long-term agreement
presents for Canadian travelers.
"AIR MILES has been, and will continue to be, an important partner for
WestJet, and provides us with a sustainable and predictable source of
revenue," says WestJet Vice-President Marketing, Lauri Feser.
"With the renewal of WestJet, we're demonstrating to our Collectors that
we will continue to provide them with the access to airline seats and great
service they have come to expect from both WestJet and the AIR MILES Program,"
says Morison. "We've seen WestJet grow to become a leading airline serving
major markets throughout Canada and elsewhere. We're proud to continue to be a
part of WestJet's success story."
AIR MILES Collectors can redeem their reward miles for flights simply by
calling 1-888-AIR MILES.

This is very disappointing!!! I was really hoping to have a new primary carrier and leave AC!

Oh well, I guess an AP supporter I will remain due to lack of any choice of a FF program!

This press release says nothing about collecting Air Miles, only redeeming them. You can redeem Air Miles on several different airlines, including AC, AA, and NW. There's nothing here to stop WS from starting their own FF programme.

You're correct and I'd misread the updated as posted. Here's a little more on the topic:

http://www.reuters.com/article/AIRDE...38254420080402

CALGARY, Alberta, April 2 (Reuters) - WestJet Airlines Ltd (WJA.TO: Quote, Profile, Research) has renewed its partnership with the Air Miles rewards program, but remains intent on starting up its own frequent flier plan, Canada's No. 2 airline said on Wednesday.

The two organizations said their agreement means Air Miles points collectors will still be able to redeem miles for WestJet flights, something called into question in recent months as the airline weighed its options.

WestJet has been an Air Miles rewards supplier since 2000.

One can also earn Air Miles on NW. A great benefit for WorldPerks members - "double dipping"!

Only on transborder, but I did that in January. I also made sure I linked my AM number to my wife's worldperks number. Got 100 AM's for our return flights.

It appears that BMO has changed it Gold Mastercard program:

http://www.newswire.ca/en/releases/a.../03/c2249.html

Now instead of being able to redeem any Westjet flight for a maximum of 1600AM, you can redeem any flight (on any eligible airline) for 20% less airmiles. Otherwise, the rest of the program seems to be the same. There is no mention of whether you still get double airmiles for booking Westjet flights using the Gold MC, or the free companion ticket for spending $3,000 in a calendar year on Westjet.

The loss of the 1600 AM with Westjet seems to be a significant loss, although I've heard availability was severely restricted anyway. Neither the Airmiles or BMO websites make any mention of Westjet doublemiles or companion ticket but the Westjet site does (double miles is on Silver as well).

All WestJet specific benefits will end with the BMO Mastercard effective June 30th (I think)

There are retention offers that for some will be provided proactively and others reactively....

I think BMO has lost interest in Air Miles when it stopped awarding AM based on account balance last year.

The difficulty in redeeming AM travel reward is probably another deterrent; at least this has been my personal experience during the past year or so. It definitely has become increasing difficult when comparing to a few years ago. AM is still insisting on a Saturday night layover and advance booking requirements in most booking situations. For car rental, usually only 100 free km per day are allowed. Redemption at Delta Hotels does not include taxes. Many hotels in the Starwood franchise do not participate, just to name a few issues that I have encountered.

AM may be suffering from the same fate as Aeroplan with too many Miles now chasing after too few reward availability. The "contract pricing" demanded by AM may no longer be attractive to many of the reward providers.

This morning, I attempted to book a hotel room with my Air Mile points for 2 upcoming trips without success.

The first one was for a room for 1 night in Richmond BC in early September 2008 with Starwood. No room available.:td:

The second one was for a room for 2 nights in Santiago, Chile in mid January 2009, also with Starwood. No room available.:td:

I am a Gold level collector. It just reaffirmed my plan to abandon collecting Air Mile because for other than toasters and kettles, it is near impossible to find any travel reward availability. I hope to able to find some worthwhile way to spend my AM already collected!:(

It probably helps to understand why WS wants its own programme.

http://www.theglobeandmail.com/servl...Story/Business

Bank of Montreal has made a bold move for market share by making big cuts in the number of points you need to travel, while several other banks have introduced an elite new Visa card with perks for big-time spenders and travellers.

BMO's newly revamped Mosaik Gold Air Miles MasterCard offers what in some situations is the most efficient way to generate reward flights in the Canadian market right now. Card holders can book flights using the Air Miles program with 20 per cent fewer points than regular members. Example: Card holders need 840 points for an off-season Toronto-New York flight, down from the standard 1,050.

BMO's re-jigged Mosaik card removes some benefits that used to be offered through a special arrangement with the airline WestJet. However, the new 20-per-cent discount will benefit more people because 11 airlines can now be used for reward flights, including WestJet. The 20-per-cent discount applies across the board to normal Air Miles requirements and BMO says there are no blackout periods or other restrictions.

The article failed to discuss the ease of redemption. 20% discount on nothing is still nothing. I have lots of Air Miles but as noted in one of my earlier posts, even with reasonable advance planning, I have been unable to book any hotel room using them as a Gold level collector.

There is also no mention in the article about the fact that the 1600 max AM price for a westjet ticket is A LOT less than most other redemption rates. From yyj to mco every other airline is at least 3500 iirc, and some as high as 6000. 20% off either fare still stucks. Plus I really really hate paying the taxes and fees..

I'll probably drop my mosaik card if this is in fact how the program is changing. I'll just redeem my airmiles for stuff I need at home like kayaks, wakeboards and crock pots.

If it wasn't so easy to earn AM's at Safeway I probably wouldn't even bother with the program.

No toasters? ;) :D

I did just redeem for a coffee maker, is that close enough?

Well, if you put some bread on the heating element and leave it long enough it might count :)

Wow - java flavoured toast ;)

Cheers
jaysue

There are two toasters currently on "sale" as Deals of the Week :)

https://www.airmiles.ca/arrow/Reward...ryId=cat530016