The air travel industry has noticed a sharp decline due to the global pandemic. There were less number of takers for flights. The airlines started suffering losses. The losses warranted airlines to take some serious steps. Airlines were in need of coming up with creative ways to get people back on board and encourage them to fly with concerned airlines. The airlines were also in need of making people stay connected with the brand even while not flying. This includes providing special offers such as discounts, the start of a loyalty program, and launching a reward system that will encourage customers to fly with a particular airline.
So here’s an attempt from tripbeam to focus on the issue what pandemic has done to airlines and how airlines are deploying the coping mechanisms to avoid losses and what steps are being taken by American Airlines to retain their best customers. Peruse the article to know more.
Pandemic-driven issues the airlines are facing
The airlines can really be good at letting people stay connected to them by extending their frequent flyer status. That sounds good because people will love to have the frequent flyer status to them even if they fly less. But that’s not really the case. Extending frequent flyer status to everyone will not be economically beneficial to the airlines. Only a selected few and coveted of the passengers must have access to frequent flyer programs of the airlines. If more and more people are having the status then the airlines run the risk of not being able to deliver the promises which they have made. To avoid this, the airlines need to be vigilant about how many people they are extending frequent flyer status to and have the resources to meet the obligations that come with it.
The airlines are making it harder for customers to do business with them or stopping the perks customers are accustomed to, which is controversial. When the airlines make a change to something people are accustomed to then it will spark reaction from the customers. Airlines need to take step to make the business more efficient secure as it will be beneficial in the long run. Airlines actually can make it easier for customers to do business by investing in the right technology and developing a better experience and ultimately making them happier in the long run.
Steps by delta airlines
The changing customer demands have made the airlines go tumultuous in their policy toward customers. The airlines struggled to keep up with the demands. Delta airlines is one such airline that is taking steps to address the situation. Delta has increased the threshold for obtaining the elite status flyer program, making it difficult to achieve the highest level of status on the airline. By bringing this into the norm, Delta is helping to ensure the reliability of its frequent flyer program and the satisfaction of its loyal customers.
The controversial change announced by American airlines
American Airlines has been taking a unique approach to loyalty rewards and elite status. It will be difficult for entry-level flyers to reach elite status. They reward their loyalty. Rewards loyal customers with bonus miles and discounts on flights, as well as granting them exclusive access to lounges, American Airlines. American Airlines rewards its loyal customers with bonus miles and discounts on flights, as well as exclusive access to lounges.
At the start of the year, American Airlines introduced its loyalty point program, which is a great way to reward customers for their loyalty and spending. When customers earn loyalty points, they become eligible for increasingly valuable benefits at different levels. One doesn’t even need to fly with American Airlines to accumulate loyalty points. One can actually earn them also through partner airlines, including on their co-branded credit cards. So you can start earning points today and start enjoying the rewards of loyalty.
Managing director of AAdvantage, Heather samp made the following statement in an interview
“The picture of the loyalty programs is complex, and it becomes quite a challenge to make sense of the different loyalty programs out there. That’s why we have been setting out to simplify the experience of our customers and that’s what we have achieved.” Customers can easily keep track of their loyalty points, rewards, and offers with AAdvantage. It doesn’t matter how complex the loyalty landscape may be.
Heather also stated in another interview that loyalty has always been a two-way street. The airlines want to make sure that they are not only recognizing their customers for their loyalty but also rewarding them. Offering exclusive discounts, rewards, and other perks truly values and appreciates Customer loyalty and engagement.
How will the new update in the loyalty program work?
A lot of rewards are there to choose from in the loyalty program. The arithmetic is quite simple. If you reach 15,000 loyalty points, you will instantly unlock group 5 boarding for the rest of the year. And as a reward you can pick either group 4 boarding on one flight( whether domestic or international like USA to India flight) or five preferential seat coupons as one of your two benefits. The situation is a win-win whether you pick option 1 or 2.
How the American Airlines will be benefited?
This decision of American Airlines can be termed a smart move. We should commend them for teaching two valuable lessons in business: rewarding their most loyal customers and understanding the importance of customer loyalty. The airlines seem to recognize the value of their customer base and is willing to invest in keeping them around by creating a reward program specifically tailored to their most valuable customers.
The whole point of a loyalty program is to reward and make feel special your most valuable customers. But the pandemic has reversed the whole scenario as many of the individuals who had frequent flyer status didn’t fly and it became hard for the airlines to identify who their loyal customer base was. Airlines are not in a position to give rewards to everyone as they can only reward a selected few. It is a policy of the airlines to tailor rewards to only selected individuals so that they can make sure they are recognizing their best customers. With exactly the right loyalty program in place, the airline will be in a position to reward the most valuable customers and keep them coming back.
American Airlines is trying something different from its competitors. American Airlines rewards customers at every step rather than just offering rewards at a set threshold for earning status. Even if one reaches the highest level of status with American Airlines, one doesn’t stop earning loyalty points and rewards. The particularly innovative approach to loyalty rewards makes American Airlines stand out from the competition.
Conclusion
Customers must receive hierarchies of rewards depending on their status, which American Airlines understands. There should be an award for everyone whether it is a frequent flyer or not so frequent flyer. The airline is doing everything in its hands to take care of its best customers. Exclusive rewards and benefits are being offered that are tailored to customers’ needs. This truly makes the experience of the customers to be more jolly and rewarding. The customer would love to choose a long-term association with the airline. The rewarding choice of American airlines is unique and definitely puts to advantage when compared to its competitors.
That’s everything all about the recent change introduced by American airlines to their frequent flyer and rewards program which has given the airline a new leash of life in front of its competitors. The recent changes will go a long way in keeping the customers happy.