AirMiles was the pioneer of the coalition or multi-partner loyalty program when it made its debut in 1992, and it rapidly gained popularity among Canadian customers. Following its triumph in the domestic market, the program expanded to other nations worldwide, such as the UK, Spain, and the Netherlands.

The announcement of their filing for bankruptcy last month may have come as a shock to many but as emerging technology offers increased transparency and airlines expand their own loyalty programs third-party platforms may be pushed aside.

There are plenty of seasoned globetrotters out there who harbour distrust of the one-sided rules, hidden costs, and limited redemption options of these airline programs. It’s not all points and perks. However, there are ways to make the most of these rewards by using them strategically. The key is to think of those earned miles and points as a currency. The value varies by airline, so it’s important to pay attention to the number of points required for a particular flight or travel date.

Also Read: Wonderful world of Web3: What is next for this groundbreaking industry?

Savvy travellers will understand the benefits of current loyalty schemes, opting for premium class redemptions and planning long-haul flights can offer better value.

Does the frequent flier care?

The globe-trotting corporate travellers of the world were once the envy of anyone starting out in their career journey. Until recently, travel was once seen as a major perk to joining an organisation. However, the high-end perks of first class, lounge access and priority boarding can seem unattainable to the average flier.

With low-cost airlines and remote working, the digital nomad lifestyle has become more accessible to younger travellers. With this in mind, many of the Airline loyalty programs can be tailored to cater for new audiences.

Now it is up to the airline to communicate the benefits of their program. Collecting points can save travellers a ton of money. Using the same airline over and over again, travellers can redeem free flights or upgrades.

Customers also get to enjoy connecting with an exclusive community, swap travel tips and get exclusive discounts. The current tracking of these points is often manual or semi-automated as part of an internal marketing strategy.

NFTs offer a way to embed loyalty into every stage of the traveller’s journey. By using NFTs as a digital record, airlines can track the needs of frequent flyers and provide a more personalised loyalty offering.

Just last month Argentinian Airline Flybondi announced that it is integrating Web3 into its ticketing process as NFTs. This follows a range of airlines such as airBaltic, Qantas and Lufthansa, exploring the use cases of the metaverse and NFTs for community engagement and streamlining operations.

Also Read: How to launch collaborations that grow communities: A guide for Web3 founders

Blockchain and NFTs reinvigorate existing loyalty programs

Why are current loyalty programs failing? Today’s consumers are savvy. They know when organisations are not providing value. They can easily Google to get reviews, advice and recommendations for products and services.

Therefore, companies need to be transparent in their marketing efforts and their approach to building repeat customers. Loyalty programs will go stale if the customers are offered the same old rewards, the system for collecting those rewards is over complicated and there is no element of personalisation.

Think about it from the traveller’s viewpoint. They have spent the time providing you with all of the insights you need to tailor the next email or journey for them. Make the customer feel valued and you have given them a user experience worth returning for.

Imagine if we could reimagine loyalty programs in a secure, transparent way. That is where blockchain technology can play a role. Using NFTs, airlines can create a tamper-proof way to record customer preferences for loyalty program benefits and ensure that the points are secure for future benefits.
NFTs also provide the frequent flier with enhanced control, allowing open access to the points a customer earns and what these points have been used for.

For airlines, blockchain technology can cut down on operation costs and make future loyalty programs less complicated. Establishing trust will be a key factor in all future loyalty programs. Today’s consumers want to feel valued and even some would like to get involved in future community development.

Web3 is reframing the importance of customer insights and providing enhanced tools for servicing the frequent flyers of tomorrow.

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