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Home»Lifestyle»Travel
Travel

Transforming Air India Marketing: Turning a Cost Center into a Cash Generator with the New Loyalty Program

April 4, 2024No Comments3 Mins Read
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Air India’s Chief Marketing Officer, Sunil Suresh, faced the challenge of turning the airline’s loyalty program, Flying Returns, from a net negative into a positive. Under its former management, the program did not realize its full potential, but with the airline’s transformation project ‘Vihaan.ai’, loyalty was identified as a key area of improvement. The goal was to create a loyalty program that could compete with the best in the world and become a value creator for the business.

The new Flying Returns program focuses on making processes easier, more rewarding, and offering greater recognition for its members. It has shifted from a miles-based system to a value-based one, making it simpler for members to understand how much they can earn. The program also offers easier ways to earn Gold or Platinum status compared to other major global carriers, aiming to provide travelers with a world-class experience and make their travel more rewarding.

Air India has made significant improvements in redemption ticket rates for its flights, sometimes reducing them by up to 50%, as well as increasing redemption availability. The airline has aligned its earning and burning rates with the best airlines in the regions it operates, making the program more competitive. The program now offers more self-service options online and a time-saving priority contact center for elite members, as well as enhanced member recognition for its elite members as part of the relaunch.

To support the changes in the loyalty program, Air India has invested time and resources in retraining its staff to deliver on both old and new program benefits. The airline has also launched new features such as ‘Fly Early’ for certain elite members, allowing them to take an earlier flight on a space-available basis. Looking ahead, the airline plans to transition to a group loyalty program that will award points and make redemptions available on group airlines, such as Air India Express, and eventually merge Vistara’s frequent flier platform with its own.

Despite the recent relaunch of the Flying Returns program, there is still more work to be done. The airline’s future ambitions include expanding the program to have 20 million members with an activity rate of 20% or more by the end of the Vihaan.ai transformation project in September 2027. With a focus on creating a world-class travel experience for its members and increasing the program’s value to the business, Air India is working towards building a strong loyalty program that can compete with the best in the industry.

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