Sunday, May 29, 2011

World of Loyalty Programmes

This blog is based on my own personal experience and is very specific to Airline loyalty programmes.

Each service provider in this world for the want of increasing market share amidst competition , provides loyalty programme in one way or the other. Be it book stores, retailers, Hotels. This is quite evident and highly visible in the Airline industry .

Ever since i made my maiden international flight in 2004, i have been avid follower of Airline frequent flyer programmes across different airlines, most of the airlines provide tier miles for every travel undertaken and these miles could be used to purchase items and also carries a status of the passengers frequent flyer.

My first interaction with a frequent flyer loyalty programme was the Star Alliance " Miles & More" programme. In which during my two year active membership, i was able to purchase duty free items.

Post that , i wasn't active with them but couple of stints with " One World " a rival frequent flyer programme offered by BA, Cathay Pacific, Qantas, Iberia, Finnair, Lanchile & American Airlines. This stint wasn't very fruitful for me as i personally did not benefit.

Over the last two plus years i have been on the " Skywards " programme offered by The Emirates group, its been very rewarding . With four business class upgrades (of course free of cost) and one upgrade to business class using my miles.

Its been rewarding to such an extent that i found it unbelievable that on one of flights from Dubai to London in which i was upgraded, i had a session with a flight steward on how this whole loyalty programme works.

I explained my predicament to the steward and i had asked him if the airline was analyzing my flying pattern and providing me with upgrades just to ensure that i stick with them?

The steward explained that airlines normally overbook the economy class in all flights with the hope that there would be last minute cancellations, when this doesn't happen , the frequent flyer's  based on their tiers i.e.Platinum,Gold, Silver have the first right for upgrades in that order, these are called complimentary upgrades.

I asked the steward what happens if the business class is full, he said the same applies i.e. they upgrade business class passengers to first class where one exists.

The tricky part is where they are unable to do so. In such instances, they use a rule in Geneva convention for intl airlines, in which the rule roughly states that even though the passenger might have a confirmed ticket, its possible that they may not be able to fly on the scheduled flight.

Am not entirely sure how this rule is invoked but i have seen this in the fine prints of the tickets as well, that's a bit scary.

I have also seen many other loyalty programmes, another one that i have benefited from is the Landmark book shop programme in which i have had very good discounts over the number of years.

In a nutshell, it looks as though that being loyal to your service providers seem to prove beneficial in the long run, at least, that's what my experience points to.

The only other place i haven't benefited from even tough i have been using the service for very long is the " Credit Cards frequent user/loyalty" programmes , i find them quite appalling.

Any other views?


1 comment:

  1. Interesting. I can confirm that I haven't benefited from any loyalty programmes till date. The amount of time and flights it take to accumulate airmiles is not worth it. Hence, I haven't cared enough to become a member of any loyalty program except the 'Miles & More'. I have been upgraded to first class a couple of times, but I do not think it was due to the loyalty program. On the other hand, I have actually cared to redeem the credit card reward points more often, maybe because I see them on the statements every month! :-))

    Good topic, though!

    Cheers!
    Suresh

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