Do Airline Rewards Programs Create Loyalty?

[shaunmgsm]

I am interested to hear peoples views on this question and reasons why/how their opinion is formed....

What are the drivers for your loyalty?

This is being used for research on rewards programs in an MBA course.

Thanks,
Shaun

 

[NM]

for me, its the benefits provided by way of tiered status rather than the allure of free flights/nights etc that keeps me loyal to a particular program. So for an airline program, it is things like:

• Lounge access
• Priority check-in
• Preferred seating allocation
• Priority baggage handling
• Upgrade priority

For a hotel program, its things like:

• Room upgrades
• Lounge access
• Free amenities (such as fruit, chocolates, drinks etc)

I make more regular use of hotel program points for free nights than I do for airline program "free" flights.

I am willing to change programs if I can attain the status benefits in the new program very quickly. I did this when changing from QF FF to AAdvantage for my flights, by way of the AA Platinum Challenge. And I changed from Hilton Honors to Priority Club for hotel stays when PC undertook a status match bumping me to their Platinum status level before my first stay.

 

[oz_mark]

Took a bit of time to get to the best answer for me - I take into account the overall value I get for my money - and of course once you have a certain status they throw things in which need to be considered. So, basically, the loyalty program is a factor, but not the only factor.

 

[Fluid-Flyer]

Unfortunately I can't respond to your poll... For me, "yes" (air travel) Loyalty Programs have an influence, "but" so to do price, convenience & comfort. (The proportions of which, are variable in every decision.)

 

[Optics]

Both elements of the loyalty programme (ie status benefits and award travel) keep me loyal to the airline (QF in my case). The status benefits make life easier (lounge access, express immigation, first class checkin etc), provide the impression the airline appreciates your business and also make you feel important. Award flights for holidays ensure my family gets some benefit from my being away so often (otherwise I would be looking for another job).
One thing that needs to be considered though, is that in my case the vast majority of my travel is business related and so paid for by my employer. If this was not the case, I think I would be much more inclined to shop around for the best value.
This is where I think the lifetime status will be beneficial for the airline. Before I leave my current job, which involves a significant amount of travel, I will likely have achieved LTG (~2500 SC to go), and this will ensure I will then usually choose to fly QF unless there is a significant better value option available.

 

[serfty]

Unfortunately I can't respond to your poll... For me, "yes" (air travel) Loyalty Programs have an influence, "but" so to do price, convenience & comfort. (The proportions of which, are variable in every decision.)

Agree ... need another option along these lines.

I can't respond either without one or two more options like that suggested.

 

[StevePER]

When I was flying enough to be QF Gold, I definitely tried to be "loyal" (mainly for the lounge access). But Silver doesn't really do anything for me, and with the constant devaluation of points and QF always charging lots more than their competitors for flights from Perth, my loyalty is gone.

DJ Silver also does nothing for me - I feel that domestically the award flights are better value (especially when you can pick them up on special) but I prefer to spend my points on overseas trips. I have paid lounge access through work but without a lounge in Perth this is less attractive than it would be otherwise.

Priority Club on the other hand definitely lures me in with all their promos and easy to earn status. I know the elite benefits are better with other programs, but I would never stay enough to earn that status. I've got a lot of benefits out of this program (upgrades, lots of award nights for 5000 points per night, and staying in Bora Bora!) so I try to stay in Holiday Inns as much as possible.

 

[JohnK]

I would be lying if I said that price was not a factor but I also enjoy the benefits that come with the status of being loyal to Qantas and its Oneworld alliance partners. Some of the things that are important to me are lounge access, priority check-in, ability to pre-allocate seats, extra baggage allowance and very good customer service. Accumulating FF points is also a nice perk when redeeming those FF points for a much desired award which for me would be a RTW.

 

[Flying Fox]

Yes I really like the loyalty programs but like most decisions in life, it comes down to the $ at the time of booking etc.

If work need me to go somewhere, I always fly QF.

If I'm paying, I don't mind spending a few more $ for QF given the extra service I receive. Should the price difference be too great, I look for alternative dates & times or in the worst case, fly someone else because the $ just don't add up.

This applies to me for all loyalty pgms and not just FF ones.

I'm sure many others 'do the maths too'.

 

[stuartfaz]

Same with most people here, for me it's a mixture between price and loyalty. Where there is a significant price difference I will forego points (flying Tiger Australia, for example) but when the difference is negligible I will stick with the program (in my case, Virgin Blue Velocity.)

 

[straitman]

I am interested to hear peoples views on this question and reasons why/how their opinion is formed....

What are the drivers for your loyalty?

This is being used for research on rewards programs in an MBA course.

Thanks,
Shaun

shaunmgsm,

Welcome to AFF.

I have not voted in your poll because like the others above I am loyal when and where it's appropriate however not to the exclusion of common sense and cost. The FF program benefits such as lounge access are what makes it all worthwhile for me and beyond that pretty much as posted by Flying Fox.

 

[Mal]

I would say that I am normally loyal to those schemes I am heavily 'invested' in, but loyalty isn't everything, and given the right $ incentive do book elsewhere. I'm also fickle in that I won't stay with a scheme that doesn't give me the right blend of benefits and rewards.

Most of my reasoning is similar to NM's comments above.

 

[winetraveller]

I am loyal to a variety of schemes, and for various reasons.

My primary alliance is M&M. As I've been able to attain HON status the benefits are, upgrade vouchers, F lounge access, a partner SEN card, and an generally an excetional level of service through LH and partner airlines.

I do however have to balance a few other things that mean that I also have other programs that accrue points. I am a QF plat, but have not flown much with them in the past 9 months, and will need to divert some activity their way (or to BA or AA), which won't be hard. I also use low cost carriers, Jetblue in particular, but also Spirit, Frontier, AirTran and a few others, but am only a member of JetBlue's. I am also a Gold member of CSA (Skyteam) but have flown less with them and other partner airlines recently.

My primary aim is to maintain status to receive the benefits, and then to accrue points for use outside work. Fortunately (or unfortunately) I do so much travel that this isn't a problem.

In terms of hotel programs, I have a two main programs I use HHonours, and Starwood, I'm also about to set out on a Plat run for Priority Club which won't take very long, a few stays at The Barclay in New York will take care of that.

I aim to use all my points on holiday, but never can really, so have been giving them away to friends and family.

 

[dajop]

I tend to agree that prices is a very strong influencing factor, particularly when I'm paying for it out of my own pocket, or even if the company is paying and my travel budget is tight. I certainly have my own limits as to what I'm prepared to pay extra for being loyal, and I must say I use DJ a whole heap more than I used to pre-Velocity (and almost never use JQ).

I used to very loyal to one particular FF program, but as my travel has increased I find myself dividing loyalties to maximise benefits across a number of airlines. However, there are limits, eg. I am finding myself travelling to SE Asia more often, and even though MH are often a little less expensive I still would travel on SQ, QF, TG, or CX because of my divided loyalty to * and oneworld.

One last thought - if one was to never ever fly economy class - would loyalty programs matter at all? After all many of the non-point benefits of loyalty programs, such as separate queues, upgrades, lounge access, priority luggage are automatic for paying J and F pax!

 

[drron]

In general the schemes do engender loyalty but as others have noted there are limits.
With international travel we do fly paid J but generally a DONE4 or circle fare.Flying to JFK we generally fly via NRT as JL or AA are considerably cheaper than QF.Although we do get J checkin and lounge access anyway it still is better to go F lines and lounges and in the US it really has been good to be AA explat.
Domestically QF do not service the Sunny coast or most regional centres I now visit so have flown DJ,Rex and occas.JQ.
As to hotels I have been loyal to Hhonors for some years.Recently I doubt their loyalty to me so have status matched to SPG and the next 18 months will decide which I am loyal to.Upgrades and lounge access are important to us.

 

[NM]

One last thought - if one was to never ever fly economy class - would loyalty programs matter at all? After all many of the non-point benefits of loyalty programs, such as separate queues, upgrades, lounge access, priority luggage are automatic for paying J and F pax!

Perhaps if always flying in paid First Class. Most of my travel (probably 80%+) is in paid Business Class, and I still appreciate the status benefits of F check-in, F Lounge access, Upgrades to F, access to preferred seating, direct access to empowered telephone staff etc.

 

[dajop]

Perhaps if always flying in paid First Class. Most of my travel (probably 80%+) is in paid Business Class, and I still appreciate the status benefits of F check-in, F Lounge access, Upgrades to F, access to preferred seating, direct access to empowered telephone staff etc.

I also thought of ability to get a seat allocation in Row 16 of a 744 (at least for those who prefer upper deck) as a bonus as well .....

 

[shaunmgsm]

Thank you everyone for your valuable insights.

It is most appreciated.

Regards,

Shaun