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As business leaders, you understand the importance of customer loyalty in driving repeat business and revenue growth. But have you considered the often-overlooked world of airport rewards programs? These loyalty programs have the potential to revolutionize the travellers experience, offering a unique opportunity to build brand loyalty and differentiate your organization from the competition.
But here's the question that should be on your mind: Are you missing out on a significant opportunity to engage with your customers and drive loyalty by neglecting airport loyalty programs?
Airport loyalty programs have become a staple in the travel industry, with over 70% of airports worldwide offering some form of loyalty program. This surge in popularity can be attributed to the increasing competition among airlines and airports to attract and retain customers. So, what's driving this trend? For travelers, airport loyalty programs offer a range of benefits that make their journey more enjoyable and rewarding. These include:
- Priority check-in and security: Loyalty program members often enjoy expedited check-in and security processing, which saves them valuable time and reduces stress.
- Enhanced airport experience: Many programs offer exclusive airport perks, such as access to lounge access, complimentary food and drinks, and personalized concierge services.
- Reward points and discounts: Travelers can earn points or miles that can be redeemed for flights, upgrades, and other travel-related expenses, making their travel more affordable and convenient.
In this article, we'll explore the rise of airport loyalty programs globally, their benefits to travelers, and the top airport loyalty programs worldwide.
What are airport rewards?
Airport reward programs are designed to enhance the traveler experience and build customer loyalty by offering incentives and rewards for frequent usage of airport services. These programs typically allow members to earn points or miles for activities such as shopping, dining, parking, and using specific airport services. The accumulated points can then be redeemed for a variety of benefits, including discounts, free services, and exclusive access to airport amenities.
Various research findings underscore the significance of airport reward programs. For instance, a study by Accenture indicates that members of loyalty programs are substantially more likely to remain engaged with a company, with a 70% higher likelihood of continuing their business. Furthermore, research published by the Harvard Business Review reveals that even a modest increase in customer retention—by about 5%—can lead to a significant rise in profits, ranging from 25% to 95%.
These insights demonstrate that airport reward programs are beneficial for enhancing customer satisfaction and play a crucial role in driving airports' financial success by fostering long-term loyalty and repeated business. By strategically implementing these programs, airports can create a more enjoyable and engaging environment for travelers, securing a competitive edge in the aviation industry.
Here are some key aspects of airport rewards:
Earning points
Airport rewards programs typically allow members to earn points for various activities such as:
- Shopping: Points are earned for purchases at participating airport retailers, restaurants, and bars.
- Dining: Points are earned for dining at participating airport restaurants and bars.
- Parking: Points are earned for parking at airport parking facilities.
- Hotels: Points are earned for booking hotels through partner hotel chains.
- Currency exchange: Points are earned for currency exchange at participating airport currency exchange services.
Redeeming points
Points can be redeemed for various rewards such as:
- Vouchers: Redeemable for purchases at participating airport retailers and restaurants.
- Gift cards: Redeemable for gift cards at participating airport retailers and restaurants.
- Travel: Redeemable for flights, upgrades, and other travel-related expenses.
- Airport services: Redeemable for airport services such as lounge access, priority check-in, and fast-track security.
Elite tiers
Many airport rewards programs offer elite tiers with enhanced benefits, such as:
- Priority check-in: Priority check-in and security processing.
- Lounge access: Access to airport lounges with complimentary food and drinks.
- Priority baggage handling: Priority baggage handling and delivery.
- Exclusive offers: Exclusive offers and discounts on airport services and products.
Benefits for travelers
Airport rewards programs offer several benefits for travelers, including:
- Enhanced airport experience: Priority check-in, security, and baggage handling.
- Exclusive offers: Exclusive offers and discounts on airport services and products.
- Reward points: Earn points for various activities and redeem them for rewards.
- Airport services: Access to airport services such as lounge access and priority baggage handling.
Airport rewards programs are designed to enhance the travel experience and encourage repeat business. By earning and redeeming points, travelers can enjoy exclusive benefits and rewards.
Top airport loyalty programs worldwide
1. London Heathrow Airport (LHR) - Heathrow Rewards
The challenge
As one of the busiest airports in the world, London Heathrow Airport (LHR) faced the challenge of enhancing the traveler experience and encouraging repeat business. With a vast array of retail, dining, and service options, the airport sought to incentivize customers to engage with the airport ecosystem.
The solution
Heathrow Airport launched the Heathrow Rewards program, a comprehensive loyalty initiative that allows travelers to earn points for a wide range of airport activities. Customers can earn 10 points for every £10 (approximately $14) spent at participating retailers, restaurants, and service providers, including currency exchange at Travelex. Additionally, points can be earned for parking at Heathrow and booking hotels through Rocketmiles.
The outcome
The Heathrow Rewards program has been a resounding success, with over 6 million members enrolled. Travelers have embraced the program, using the ability to earn and redeem points for various rewards, including shopping vouchers, Heathrow Express tickets, and airline miles. The program has helped enhance the airport experience, increasing customer loyalty and repeat business.
2. United States - Thanks Again Program
The challenge
In the highly competitive U.S. airport landscape, many airports struggle to differentiate themselves and foster customer loyalty. With travelers often focused on the quickest route to their destination, airports sought a way to incentivize customers to engage with the airport ecosystem.
The solution
The Thanks Again program was launched, a loyalty initiative that spans over 100 airports across the United States. The program allows travelers to earn rewards for purchases made at participating airport retailers, restaurants, and service providers. Customers can link their credit or debit cards to the program and earn points with every transaction.
The outcome
The Thanks Again program has been widely adopted by U.S. airports, with the recent launch of the DTW Rewards program at Detroit Metropolitan Wayne County Airport (DTW) being a prime example. The program has enabled airports to collect valuable data on customer behavior, allowing them to tailor the airport experience and drive increased engagement. Travelers have embraced the program, enjoying the ability to earn rewards and redeem them for various benefits, from purchases to airline miles.
3. Auckland Airport (AKL) - The Strata Club
The challenge
Auckland Airport (AKL) sought to enhance the traveler experience and foster community among its customers. As a major international hub, the airport recognized the need to provide a comprehensive loyalty program that would appeal to domestic and international travelers.
The solution
The Strata Club was launched, a multi-tiered loyalty program that allows travelers to earn points for every NZD 1 (approximately $0.73) spent at the airport. Members can redeem their points for various rewards, including purchases, lounge access, and parking upgrades. The program features four membership tiers – Regular, Silver, Gold, and Platinum – each with exclusive benefits.
The outcome
The Strata Club has been a resounding success, with a rapidly growing membership base. Travelers have embraced the program, taking advantage of the ability to earn and redeem points for various rewards. The program has helped to create a sense of community among airport customers, fostering loyalty and repeat business. The tiered structure has also encouraged travelers to engage more deeply with the airport, driving increased revenue and customer satisfaction.
4. Paris Charles de Gaulle Airport (CDG) - My Paris Aeroport
The challenge
Paris Charles de Gaulle Airport (CDG) needed to enhance the traveler experience while increasing engagement with its retail and service offerings. With a high volume of international passengers, the airport aimed to encourage frequent usage and spending.
The solution
The My Paris Aeroport program was launched, offering free high-speed Wi-Fi, an ongoing 5% discount at participating airport shops, and parking booked online or via the Paris Aeroport app. Members collect 2 points for every €2 (approximately $2.44) spent in participating stores. Points can be redeemed for vouchers and parking discounts, as well as miles with Air France/KLM Flying Blue and hotel points with Accor Live Limitless.
The outcome
The My Paris Aeroport program has been highly successful, attracting a large number of frequent travelers. New members receive initial bonuses, which has increased enrollment. The program's benefits have driven more customer engagement and spending within the airport, enhancing overall customer satisfaction.
5. Milan Airports (MXP and LIN) - ViaMilano Program
The challenge
Milan Malpensa (MXP) and Milan Linate (LIN) airports needed to incentivize travelers to spend more time and money within the airports, thereby boosting overall revenue and improving the travel experience.
The solution
The ViaMilano program was introduced, partnering with over 200 stores and restaurants and offering a 15% discount on parking. Members earn 10 points for every €1 (approximately $1.22) spent at partner locations. Points can be redeemed for VIP Lounge access, expedited security and boarding services, and shopping vouchers.
The outcome
ViaMilano has seen significant membership growth, with travelers appreciating the ease of earning and redeeming points. The program has increased customer satisfaction and loyalty, driving higher engagement and revenue within the airport.
6. Singapore Changi Airport (SIN) - Changi Rewards
The challenge
Singapore Changi Airport (SIN) sought to maintain its status as a premier international hub by enhancing the traveler experience and fostering loyalty among its diverse customer base.
The solution
Changi Rewards was launched, offering discounts on eligible purchases and promotions such as double birthday points. The program features Gold and Platinum elite tiers, providing additional benefits like free parking and lounge access. Members can redeem points for cash discounts or transfer them to Singapore Airlines KrisFlyer miles.
The outcome
Changi Rewards has been well-received, with significant membership growth and high engagement levels. The program's tiered structure and attractive benefits have enhanced customer loyalty and satisfaction, ensuring that Changi remains a preferred stopover for international travelers.
Maximizing airport rewards
As airport loyalty programs continue to evolve, travelers are finding innovative ways to maximize their rewards and enhance their overall travel experience. Here are the key strategies to maximize the airport rewards:
Integrating airport loyalty with travel credit cards
One of the most effective ways to maximize airport rewards is by integrating them with travel credit cards. Many credit card providers offer co-branded cards that allow users to earn points or miles for purchases made at participating airports. For example, the Chase Sapphire Reserve card offers 3x points on travel and dining purchases, including those made at airports.
By leveraging these co-branded credit cards, travelers can earn points or miles that can be redeemed for a variety of rewards, such as:
- Gift cards: Redeem points for gift cards that can be used at airport retailers and restaurants.
- Lounge access: Use points to access airport lounges, where travelers can enjoy complimentary food, drinks, and amenities.
- Frequent flyer miles: Transfer points to airline frequent flyer programs, allowing travelers to book free flights or upgrades.
- Travel expenses: Redeem points to cover the cost of flights, hotels, and other travel-related expenses.
Duty-free shopping rewards
Another way to maximize airport rewards is by using duty-free shopping programs. Many airports worldwide offer loyalty programs for duty-free purchases, such as the RED by Dufry program. These programs allow travelers to earn points or discounts on their duty-free purchases, which can be redeemed for a variety of rewards, including:
- Vouchers: Earn points that can be redeemed for vouchers to use at participating duty-free stores.
- Frequent flyer miles: Earn miles or points that can be transferred to airline frequent flyer programs.
- Exclusive offers: Enjoy exclusive discounts and promotions on duty-free products.
Airport rewards programs have become an essential part of the travel experience, offering savvy travelers a wealth of opportunities to enhance their journey. Travelers can unlock exclusive benefits and create a more rewarding and enjoyable airport experience by understanding the various strategies for earning and redeeming points.
Strategies for airlines and airports to enhance customer loyalty
To stay ahead in the evolving landscape of airport loyalty programs, airlines and airports should consider the following strategies:
Invest in Data and Analytics
Leverage data and analytics to gain a deeper understanding of customer preferences, behaviors, and pain points, enabling the creation of more personalized and relevant loyalty offerings.
Develop seamless ecosystem partnerships
Collaborate with airlines, hotels, and other travel providers to create a more integrated and valuable loyalty ecosystem, allowing members to earn and redeem points across multiple touchpoints.
Embrace innovative technologies
Implement cutting-edge technologies like mobile wallets, biometrics, and augmented reality to enhance the loyalty program experience and drive engagement.
Emphasize sustainability and social responsibility
Align loyalty programs with sustainability initiatives and social impact projects to appeal to environmentally and socially conscious travelers.
Foster a culture of loyalty and engagement
Empower employees to deliver exceptional customer service and create a sense of community among loyalty program members, fostering long-term loyalty and advocacy.
By adopting these strategies and staying attuned to the industry's evolving trends, airlines and airports can position their loyalty programs as a key driver of customer loyalty and business success in the years to come.
Conclusion
Airport loyalty programs have evolved significantly over the years, offering travelers a wide range of benefits and rewards. From earning points for shopping and dining to redeeming them for flights and upgrades, these programs have become an essential part of the travel experience. Airlines and airports can enhance customer loyalty and drive revenue by understanding the key trends and strategies in airport loyalty programs.
As the travel industry evolves, airport loyalty programs will play an increasingly important role in shaping the passenger experience. By leveraging data and analytics, integrating with travel ecosystems, and emphasizing sustainability and social responsibility, airports can create a more personalized and engaging experience for their loyalty program members.
