You are familiar with a frequent flyer programme, but what about an infrequent flyer scheme that supposedly rewards everyone even if he or she does not fly frequently enough?
That is the new club that budget carrier Tigerair has introduced in Australia targeting the everyday man. This is not to be confused with Stripes, a membership programme that is managed by Singapore’s Tigerair Group. The Stripes club comes with an annual fee at S$29.94 or the equivalent of US$23.94 whereas the Infrequent Flyer Club membership is offered free. However, compared to Stripes, the Jetstar Club also charges a fee at A$39 or US$36 per year, which includes access to members-only events, promotional fares, and discounts and special offers from partners.
So what is the big deal about Tigerair’s new “free” scheme?
Tigerair Australia’s head of communciaitons Vanessa Regan said: “The Infrequent Flyer Club is a fun promotional campaign to engage with our Australian consumers and allow them to receive exclusive surprises, offers and special deals direct from Tigerair Australia.”
With some sense of humour, you might say this is a spoof on the frequent flyer programme adopted by many airlines as a carrot for loyalty. For many people who fly infrequently, the benefits are unrealisable as some of them carry an expiry date. But really is it one big gimmick or novelty by way of an advertising brainchild. The scheme will run on a customer relationship management platform, created in partnership with McCann Australia. So, said McCann executive creative director John Mescall: “Any airline can have a frequent flyer programme, but it takes a special kind of airline to think about the people who may not be able to fly regularly.”
Image Courtesy of flightanimation
A bit of the underdog appeal there, indeed. It may work, capitalising on the ordinary man’s need to belong and to feel special. Members do not earn points by flying, so they do not fear losing them if they do not make a next trip to top up, or feel the compulsion to fly to reach a next level for better perks. And members get to choose their membership levels designated by such hip names of colours as Bin Green, Hipster Chino, Aerobics Leotard Blue, ‘70s brown and triple emerald sapphire ivory. People love choices. To encourage sign-up, the first 5,000 members will get a A$100 voucher, and be the first to know about special offers or new Tigerair’s destinations. There is no better way for Tigerair to beef up its database of potential clients.
Is this a formula for definite success? Apart from gaining some public relations (PR) traction in ribbing the recent overhaul of its frequent flyer programme by Qantas including Jetstar as the rivals compete for the somewhat dormant Australian market, it depends on what Tigerair does next to shore up the excitement. Membership alone is not a criterion of success. The hard truth about cold business is that customers have expectations, they want to be rewarded for their loyalty, and at some point the good feel has to be translated into tangibles. However, the nature of the budget business is such that perks matter less than cost. In a survey conducted by a major airline of its customers’ preferences – and this, it is to be noted, is not even a budget carrier – travellers prefer a 10% discount upfront on the fare rather than points for flight redemption. Better a bird in hand.
As the global economy recovers and more people begin flying, airlines do not have to work as hard to retain old customers or entice new ones. There appears to be a rethink of the flyer programme to base its rewards not on frequency of travel or the miles travelled but how much you spend on a ticket. The name of the frequent flyer programme is apt to become a misnomer as airlines shift their preference from frequent flyers to big spenders. The new Qantas Frequent Flyer programme does exactly that, moving from a miles-based system to a zone-based system whereby flyer points and status credits are based on the cost of the ticket. There is also a shift in downgrading rewards for travel on partner airlines to encourage customers to fly Qantas first and its partners second.
The trend is also catching up in the United States. Delta Air Lines and Southwest Airlines, though the latter of which is a domestic operator, already have such a system in place. The American Airlines Group comprising the merged entity of erstwhile American Airlines and US Airways is following suit. Alaska Airlines is mooting over a “Sphere” programme to award points based on spending rather than just flying. Delta’s SkyMiles program vice-president Jeff Robertson said: “The travel industry, including nearly all hotel and credit card programmes, has already moved to a spend-based model. The introduction of a new model for earning miles will increase rewards for those who spend more as well as differentiate the SkyMiles Frequent flyer programme for our premium traveller.”
Is this a sign of the premium market recovering or merely yet another push to energise that segment of travel that in better days make up the bulk of a legacy airline’s earnings? However you look at it, it makes economic sense to reward those who spend more. What price then is loyalty for those who fly frequently but do not splash to drink champagne and feast on caviar? The base may shift, particularly when you can join any one of so many airline programmes for a fee just to enjoy priority check-in and boarding, access to an airport lounge in some cases, and possibly an upgrade.
Cheers though to Tigerair Australia’s Infrequent Flyer Club if only for the fun of it. As the industry moves into a transitional phase, it is the season to be different. But note that affter the fizz without the champagne, customers will wise up.
Image Courtesy of Tigerair Australia
Rewarding the big spenders, not frequent flyers
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