Airline loyalty miles are losing their power, prompting travelers to chase bonuses in exchange for points. Loyalty programs for South African leisure and corporate travelers are still attractive, but there is now a greater emphasis on leveling up to enjoy premium benefits rather than accumulating miles. :
Frequent flyers
David van den Hever-LiebenbergDirector and travel expert Marmalade Toast notes a resurgence of frequent travelers choosing higher-fare tickets with airlines where they have loyalty members, rather than opting for cheaper flights that will dilute their points earned across multiple carriers.
He explains that loyalty members are focusing more on upgrading their loyalty status to higher tiers to receive benefits such as priority check-in, excess baggage and free advance seating, which he says is part of a larger trend. where the level of loyalty status is more important than the points themselves due to the devaluation of points.
“Where we see points depreciating is in the cost of tickets when we use points to pay. Air tickets have become very expensive ‘points-wise’ and this is where we see passengers using loyalty programs for benefits rather than points. “.
He suggests that airlines should promote mileage sales deals for customers and open up more award seat inventory; for example, SAA’s Journey-Blitz award specials, where tickets were available as a fraction of the standard mileage requirement. flight inventory opens up, seats become available almost immediately.”
Corporates are missing out on benefits
Corporate travelers are also feeling the effects of the devaluation of airline miles.
Maureen MasukuRand Merchant Bank Head of Travel & Marketing Sourcing and GBTA SA Board Chair says: “Hotel loyalty memberships are more valuable, especially domestically, because you can convert points into rands and have a free stay, and it’s easy to achieve the required value. book However, airline loyalty programs are more complicated. Post-COVID, South Africa has a limited number of airlines and fewer offering loyalty programs.”
Masuku also notes that loyalty agreements between corporates and suppliers are becoming more restrictive.
“Providers need to review loyalty programs for businesses and offer those company travelers worthwhile benefits, such as upgrades based on availability. There are various providers that can’t offer upfront discounts (corporate contract rates) and still don’t offer loyalty program benefits, which I don’t.” think it’s a fair practice.
“While we understand that these suppliers also need to generate profit and revenue, it is important to offer beneficial partnerships and appreciation to customers who are loyal to your business,” he concludes.