FLIGHT Specials is set to
launch its own consumer
loyalty card before the
end of the year in a bid
to differentiate its service
offering.
“Service is not enough of
a differentiator any more,”
says gm, Franz von Wielligh,
explaining that travel agencies
that sell the same product at
the same price need some
way of enticing customers to
remain loyal to their brand.
He uses the example of a
coffee franchise. “If you know
one franchise allows you
to eventually receive a free
cappuccino with your points,
you will go back,” he says.
The card will operate on a
‘points’ basis. “A percentage
calculated from the traveller’s
total booking spend will go
into a basket as a rand-value
amount,” says Franz. Travellers
will then be able to redeem
those points, either on future
travel or with a selection of
retailers.
The card may also be used
as a gift card.
While loyalty strategy is not
necessarily new in the travel
retail environment, Franz says
Flight Specials is the first
agency to partner with retailers
outside of travel.
Loyalty expert and ceo of
US-based Loyalty 360, Mark
Johnson, says a well-designed
loyalty programme can have
a dramatic effect on the
customer’s behaviour, and thus
profit.
“If the programme is
administered effectively, the
company could expect to see
anywhere between a 5% to
10% increase in top line sales
during the first year. Thereafter,
the increase in top line sales
will drop but the overall
profitability increases with
continued strength in bottom
line sales,” says Mark.
He says travel agencies in
the US that have experienced
significant disruption as a
result of travel aggregators
like Expedia, are looking at
options like loyalty strategies
to provide value and service
for their customers.
