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Eight low cost airlines launch new Frequent Flier Programs all over the globe
Monday, July 24, 2006
The IdeaWorks Company has analyzed the latest frequent flier programs offered by low cost carriers (LCCs) in Europe, Asia, South Pacific and the United States. LCCs are shedding their “no frills” personalities and are adding amenities as they reach out to capture business travelers with services normally associated with legacy airlines.

The eight airlines are an eclectic group and have marketing strategies and products that are as varied as their global geography. Using a creative approach to tap what they perceive to be market opportunities appears to be one of the few things they share.

Here is a sampling of the observations from the analysis:

  1. Eos Airlines (USA) offers its Club 48 members the option to pool miles from up to nine individual accounts to earn a free reward.


  2. Virgin Blue Airlines (Australia) allows Velocity program members to spend points like cash with savings available for off-peak departures.


  3. Spirit Airlines (USA) offers five elite tiers in its Free Spirit program and plans to name an aircraft in its fleet in honor of its annual top flier.


  4. Germanwings (Europe) provides its Boomerang Club members an early boarding privilege after they apply for its co-branded credit card.

Michael Verikios - Monday, July 24, 2006
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Poll
How do you expect luxury travel to perform in times of economic downturn?.

Providers of luxury travel products are going to witness shorter stays by their customers and an increase in seasonality.

People are going to become more value conscious and will opt for those luxury offers that represent a convincing value-for-money proposition. Providers of overpriced services are those to feel the pinch.

Both people paying for their personal trips and firms paying for their top executives' business trips will cut back on travel expenses, thus affecting all luxury travel providers.

It is going to be business as usual. Those people opting for high-end travel products are not going to be affected by the looming crisis.

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