High status levels mean a lot to frequent travellers. Not only because they come with some very valuable privileges but also as a symbol of being someone special. What does it do to these customers if they lose their status because of Corona?
The airlines’ network offering is significantly down. Corona has put a stop to travel opportunities and travel needs. Status customers do not lose their status level due to fading loyalty but because there is simply no way to maintain their travel habits.
Loyalty programs have chosen different ways to keep their high worth customers.
- Hotel program Marriott Bonvoy extended status levels until Feb, 1st, 2022 plus it reduces the minimum night requirement by 50%
- Lufthansa Group re-honors HON Circle miles accrued in 2019 also for 2020 and 2021 to keep this most valuable customer group. And for the first time ever customers can earn status miles through credit card transactions. Up to 25.000 status miles can be earned this way in 2021. Together with a one-time bonus of 5.000 miles and an exchange of award miles against status miles the FTL status can be reached without any flight activity
- Lucky are customers that are members of multi-partner programs such as UK based Nectar. Loyal customers of British Airways can continue collecting miles by shopping at Sainsbury, EBAY or Esso. These miles do not count towards their BA status level but the transaction strengthens the relevance of the loyalty program and thus the relevance of BA for the time after Corona.
Loyalty programs need to prepare for the upcoming years. We expect some major changes in corporate travel and leisure travel activities. Thresholds to reach status levels need to be adjusted, program benefits need to reflect the new leisure & corporate mix regarding passenger expectations and leisure passengers traveling First and Business class need to be attracted with new status level thresholds.
Are you thinking about a loyalty program relaunch? Let UNEX support you in the design and modeling phase of all the different scenarios that can occur.