The Three Best Loyalty Programmes in Ireland

Frequent flyer programmes have been helping to wing us around the globe for more than 30 years. Now, airlines are switching their programmes from ‘miles travelled’ to ‘money spent’ in droves. All About Loyalty looks at three of the biggest airline Loyalty Programmes operating within Ireland and at how they are attempting to retain passengers.

Mile High Club

The airline industry was the first to practice loyalty by offering frequent travellers free flights when Western Direct Marketing pioneered the programme for United Airlines in 1972. It laid the basis for the airlines programmes that we know today. American Airlines followed suit to create the first major airlines loyalty programme in 1982, AAAdvantage.

Non-US airlines were initially sceptical of introducing these loyalty programmes as they feared it would dilute the exclusive image associated with flying at the time. But before long, most airlines had rolled out loyalty programmes and today there are more than 70 frequent flyer programmes worldwide with many global alliances making it easier to collect points and receive rewards for travelling globally.

Does it Increase Customer Loyalty?

In October 2012, Deloitte’s Travel, Hospitality, and Leisure practice performed extensive consumer loyalty research, surveying 4,000 travellers.

“Our findings strongly suggest that the state of airline loyalty is less than what carriers would like it to be. More sobering is our finding that airline loyalty programmes are far from effective in engendering that loyalty,” Deloitte executive Adam Weissenberg wrote in the foreword to Rising Above the Clouds: Charting A Course for Renewed Airline Consumer Loyalty.

“We conclude that airlines should approach any effort to improve loyalty programmes as a customised exercise. Or, put differently, when it comes to airline loyalty programs, one size most certainly does not fit all,” stated Weissenberg, vice chairman and leader of Deloitte’s US travel, hospitality, and leisure area.

Deloitte recommended airlines reshape their customer experience by shaking up the definition of loyalty and reinventing loyalty programmes.

Future Of Air Miles

The Deloitte report found that some 44% of business travellers and 72% of high-frequency business travellers participate in two or more airline loyalty programmes. More than a third of high-frequency business travellers participate in four or more programmes. Some two thirds of overall respondents in the Deloitte survey were at least open toward switching to a competing loyalty programme even after achieving highest status level.

From fuel costs to labour issues, the global airlines industry is facing many challenges and with this airlines are readdressing their loyalty programmes. Loyalty programmes are evolving into something that is much more inclusive – not just rewarding business customers and high frequency customers.

Aer Lingus

Aer Lingus was a member of the oneworld alliance until 2007 but is now no longer a part of any global alliance, instead having a handful of partner airlines. The airline is home to Ireland’s only homegrown airline programme Aer Lingus’ Gold Circle, which has been operating since 2004 and now has 300,000 members across 39 countries. Benefits are available to Gold, Prestige and Elite members.

Members can redeem points for Reward flights with Aer Lingus and the airline’s partner airlines and use points to upgrade an existing economy booking to business class on transatlantic services. You can also redeem points for a selection of gifts or vouchers from Aer Lingus’ retail partners, Brown Thomas, Appleby Jewellers and Arnotts.

“Most Aer Lingus fares automatically qualify for points and sale/discounted fares qualify for points if the Plus Fare option is selected” says Mike Rutter, Aer Lingus Chief Revenue Officer. “Points for travel on Partner Airlines are calculated based on the carrier/route and fare class purchased.”

The programme has not been well reviewed: particularly because redemption for flights is quite high and you must still pay taxes and admin fees for flights. To retain membership you have to earn at least 2,400 points in a year and business class flights gain ‘bonus points’, which are not included in the required membership points. Due to ongoing developments within the organisation it seems that any major shifts in the programme have been put on hold.

British Airways

British Airways partnered with Avios in 2011 to replace its original rewards air miles and BA Miles programmes. Avios was awarded the Best Loyalty Programme of the Year at the 2013 Loyalty Awards in London.

In early 2014, Gavin Halliday formerly of British Airways took over as managing director of Avios. He said, “I am energised by the opportunities open to Avios, both in terms of global market expansion; working with key strategic partners and offering members great value travel rewards.”

Robin Glover-Faure, head of short-haul at British Airways, said: “Our most loyal customers in the Executive Club have told us they want more ways to use their Avios and this new option is in response to that feedback. It enables them to realise real cost savings – as much as 38 per cent off in some cases – on European flights, so flights to somewhere like Barcelona could cost as little as £48 return and 4,500 Avios for someone on a hand-baggage only fare.”

“We believe this will prove very popular with customers and should result in more people being whisked away!”

At the beginning of 2015, Avios faced criticism for changes to the programme, which slashed by 75% the airmiles the cheapest economy class tickets will earn, while giving business and expense-account flyers more rewards. Supply for flights is managed through blackout periods for more popular times and routes. This means that many routes are almost impossible to book using points alone. You also have to pay taxes, fees and carrier charges on flights bought with miles – adding more than €400 to a London-New York flight. To get the most value on your points, Avios have recommended in the past that you buy cash tickets and use your points to upgrade.

Emirates

Emirates operate out of the $4.8 billion Terminal 3 in Dubai International Airport – the largest airport terminal in the world. The airline began a direct Dubai-Dublin flight in 2011. Skywards is the airline’s award-winning frequent flyer programme and was launched in 2000 – now more than 10 million members have signed up to the programme.

“Skywards is open for everyone to join and offers four tiers of membership – Blue, Silver, Gold and Platinum – with each tier providing a selection of exclusive offers and privileges,” says a Skywards representative.

Programme members earn Skywards Miles whenever they fly Emirates or select partner airlines, such as Qantas, as well as when they use the programme’s designated hotels, car rentals, financial, leisure and lifestyle partners.

Emirates Skywards has consistently been ranked as one of the best frequent traveller programmes for many years. Its impressive list of partners is certainly a big draw for many frequent flyers. Other major draws include the Family Bonus programmes that allows you to register up to eight immediate family members and when one of the eight flies on Emirates, you will earn 20% of their miles.

If you love the sound of a Laoyalty Programme and want to learn how it can benefit your company, get in touch:
Tel: +353 (0)1 255 7566 | Email: hello@zahramediagroup.com