Issued03December2024

LowCostMeetsLoyaltyIdeaWorksCompany?2024Page1

LowCostMeetsLoyalty

Contents

LOWCOSTTOOKDECADESTOLOVELOYALTY 4

CONSIDERTHEFREQUENTFLYERPATHCAREFULLY 5

LOYALTYPROGRAMSBOOSTTHELCCPRODUCTOFFER 7

REVENUEBASEDACCRUALPREVAILS 8

REWARDSARELARGELYLIMITEDTOAIRTRAVEL 9

ELITETIERSAREASURPRISINGBONUS 11

CO-BRANDEDCARDSAREUNIVERSALLYAVAILABLE 12

THESEPROGRAMSPROVIDEMOREPERKS 13

FREQUENTFLYERPROGRAMSSHARETHESETRAITS 14

Thedistributionofthisreport

ismadepossiblethroughthesponsorshipofCarTrawler.

CarTrawleristheleadingglobalB2Bproviderofcarrentalandmobilitysolutionstothetravelindustry.Recognisedforitsinnovativetechnologysolutions,CarTrawleristhepartnerofchoicefortheworld’sleadingtravelbrands,enablingthemtooffercarrental,airporttransferandride-hailingservicestotheircustomers.CarTrawler’s

purposeistodrivesuccessfulpartnerships,bycreatingsubstantialancillaryrevenueopportunitiesforthetravelandairlineindustry.

Foundedin2004inDublin,Ireland,CarTrawler’sproprietarytechnologyplatform

connectscustomerstomorecarrentaloptionsthananyoneelseintheworld.Theirteamofin-houseexpertsdesigns,buildsandpowerstailoredsoftwaresolutions

whichareeasilyintegratedintopartners’websitesandintuitivetouse.Developed

over20years,CarTrawler’sinnovative,bespokeanddata-ledsolutionshaveprovenconversionratesandmeasurablereturns.

CarTrawler’sglobalnetworkconnectsmorethan50,000carrentallocations

worldwide,workingwiththebiggestindustryplayersincludingUnitedAirlines,

AmericanExpressTravel,easyJet,Uber,HandEmirates.Findoutmoreat.

IssuedbyIdeaWorksCLLCShorewood,Wisconsin,USA

www.IdeaWorksC

LowCostMeetsLoyaltyIdeaWorksCompany?202Page

LowCostMeetsLoyaltyIdeaWorksCompany?2024Page3

AboutJaySorensen,WriteroftheReport

JaySorensen’sresearchandreportshavemadehimaleadingauthorityonfrequentflyer

programsandtheancillaryrevenuemovement.HeisaregularkeynotespeakeratancillaryrevenueandairlineretailconferencesandhastestifiedtotheUSCongressonancillary

revenueissues.Hispublishedworksarerelieduponbyairlineexecutivesthroughoutthe

worldandincludefirst-everguidesonthetopicsof

ancillaryrevenueandloyaltymarketing.

Mr.Sorensenhas40years

experienceinproduct,

partnership,andmarketing

development.AspresidentoftheIdeaWorksCompany

JaywithsonsAntonandAlekseiatArtistPointinYellowstoneNationalPark.

consultingfirm,hehashelpedboostairlinerevenue,startedloyaltyprogramsandco-

brandedcreditcards,developedproductsintheservicesector,andhelpedstartanairlineandothertravelcompanies.Hiscareerincludes13yearsatMidwestAirlineswherehewasresponsibleformarketing,sales,customerservice,productdevelopment,operations,

planning,financialanalysisandbudgeting.Hisfavoriteactivitiesarehiking,exploringandcampinginUSnationalparkswithhisfamily.

AboutEricLucas,EditoroftheReport

EricLucasisaninternationaljournalistwhoseworkhasappearedinMichelintravelguides,AlaskaAirlinesBeyondMagazine,Epoch

Times,Westwaysandmanyotherpublications.Foundingeditorof

MidwestAirlinesMagazine,heistheauthorofeightbooks.Erichasfollowedandwrittenaboutthetravelindustryformorethan30years.HelivesonSanJuanIsland,Washington,wherehegrowsorganic

garlic,apples,beansandhay.

Eric,athisfavoritesummerretreat,SteensMountain,Oregon.

DisclosuretoReadersofthisReport

IdeaWorksCompanymakeseveryefforttoensurethequalityoftheinformationinthisreport.Beforerelyingontheinformation,youshouldobtainappropriateprofessionaladvicerelevanttoyourparticularcircumstances.IdeaWorksCompanycannotguarantee,andassumesno

legalliabilityorresponsibilityfor,theaccuracy,currencyorcompletenessoftheinformation.Theviewsexpressedinthereportaretheviewsoftheauthor,anddonotrepresentthe

officialviewofCarTrawler.

LowCostMeetsLoyaltyIdeaWorksCompany?2024Page4

LOWCOSTTOOKDECADESTOLOVELOYALTY

Thisisareportonthefrequentflyerprogramsof10toplowcostcarriers.Today,loyaltyisnowfirmlyembracedbyLCCs.Decadesagoairlineexecutivespredicted“l(fā)owcost”and“l(fā)oyalty”wereanimpossiblecombination.Contributingtothiswere

theearlylowcostcarriers(LCCs)whichwereledbyanintentionallyminimalistbunchofpioneers.

Theoriginalmodelrequiredabrutaldedicationto

simpleoperationswithasingularfocusonlowest

operatingcost.Thiswasachievedbyfillingthe

aircraftcabinwitheconomyseats,chargingasinglefareineachmarket(withnoregardforrevenue

management)andreducinginflightservicetosoft

drinksandcoffee.Theonlywaytobookaflightwastocalltheairline...onalandline.

Frequentflyerprogramsweredeemednonessential,costly,andagainstthelow-costethos.Alsobundledashigh-costsins:premiumcabins,inflightmeals,

airportlounges,andfancyairportconcourses.

PeopleExpresswasa1980schildofthisenvironment

andhelpeddefinethisLCCmodel.Management

eventuallyturnedfromthepurityofsimplicityduetomanyreasonsinvolvingcompetition,consumer

preferences,andadisastrousmerger.1In1986theairlineaddedfirstclasscabinsandafrequentflyerprogram.In1987PeopleExpressceasedtoexist.ThislegacyhelpsexplainwhysomemajorLCCs

todayhavenotyetembracedloyaltymarketing.

Buttheperceivedsinsofthepasthavebecome

necessitiesforthepresent.Frequentflyerprogramsnotonlydeliverrewards,theyalsocreateloyaltyforyourbestcustomers,provideunmatchedmarketingdata,andcanproducemillionsinancillaryrevenue.

VeryinnovativeforanLCCin

1986:aroundtripeconomyrewardwithafreeweekendrentalcarfor20,000miles,andbonusmilesfortheemployer.

1“AHybridStrategyforPeopleExpress”articleintheNewYorkTimesdated01May1986.

LowCostMeetsLoyaltyIdeaWorksCompany?2024Page5

Areviewoftheworld’s20largestlowcostcarriers2revealsthat14nowhave

frequentflyerprograms.Number2onthelistisIndiGo,whichrecentlyaddedits

BluChipprogramthisyear.It’simportanttonote,the#1,#3and#4carriershaveyettoaddprograms:Ryanair,easyJet,andWizzAir.AmongthistroikaofEurope’s

largestLCCs,easyJetandWizzAirofferpaidsubscriptionprogramswhichgenerateloyalty-inducingbenefits.Butasfortrueaccruingandrewardingprograms,these

giantsaresilent.

Well,notquite.MichaelO’Leary,CEOofRyanair,iswidelyknownforhisdisdainfortraditionalfrequentflyerprograms.Just

thisyear,O’Learycommented,“Ifyouwantsomethingloyal,buyadog.IfyouwantthelowestairfaresinEurope,flyRyanair.”3

It’sdifficulttoarguewithanairlineleader

whohasledthemostsuccessfulLCCon

theplanet.Fewairlinescanmatchthe

giantadvantagesofscaleachieved:558

aircraft,228destinations,91crewbases,

36countries,andananticipated300millionannualpassengersbyfiscalyear2034.4

Mr.O’Learyandhiscrewrunanexcellentairline.It’saEuropeanjuggernautthat

operatesinarealmthatmostlowcost

Loyaltywithbenefits;butnotafrequentflyerprogram.WizzAirintroduceditssubscriptionprogramin2016.Paidprogramsnaturally

havelimitedappealamongallcustomers.

airlineexecutivescan’tbegintoappreciate,comprehend,orcopy.Therestmust

identifyeveryopportunitytoattract

businesstravelers,high-flyingleisure

passengers,andconsumerspendoncreditcards.

CONSIDERTHEFREQUENTFLYERPATHCAREFULLY

Anearlierreportin20245definedloyaltyasthis:“Wereturnascustomerswhenwebelievetheexperienceisconsistentandenjoyable,evenwhentemptedby

competingoffers.”It’sauniversaldefinitionthatappliestoservices,products,andexperiences.Buttheairlineindustryhasfoundparticularsuccessindeploying

frequentflyerprogramsasabondingagentbetweencarriersandcustomers.

22024BigBookofAirlineDatabyIdeaWorksCompany.

3“Buyadogifyouwantsomeloyalty”articleintheIrishIndependent,dated26April2024.

4RyanairQuarter1results,July2024atR.

5"AirlineLoyaltyBecomesaMulti-BillionDollarClub”dated16April2024atIdeaWorksC.

LowCostMeetsLoyaltyIdeaWorksCompany?2024Page6

Therearetwotypesofloyalty:behavioralandtransactional.

●Behavioralloyaltyisthelove-basedtype.Wereturnagainandagainto

companies,organizations,andevenpeople,becausetheyhelpdefineus.Therelationshipasacustomer,supporter,orfriendisstrengthenedbythegood

vibescreatedthroughinteraction.Serviceandqualityarethestrongest

components.Weinherentlybelievetherelationshipisbaseduponfairnessandknowingthatweareprotectedifthingsgowrong.Thisisthestrongesttypeofrelationshipbecauseit’sforgivingofmistakesandbaseduponlove.Humans

willfighttomaintainthesebonds.

●Transactionalloyaltyisthecash-basedtype.Theseareexchange

relationshipsinwhichsomethingisgivenandsomethingisreceived.Withaco-brandedcreditcard,weusethecardforpurchasesandreceivemilesor

pointsasareward.Theconsumermakesacalculationwitheachpurchasetoassesswhethertheeffortproduces

acceptableshort-andlong-term

benefits.Theserelationshipscanbelonglastingiftheconsumerdoesnotseekbettervaluefromacompetitor.

Butloyaltycanendwhenthe

memberapproachesanaccountbalanceofzeropointswhich

eliminatesthecostofswitching

allegiancetoanewbrand.AirArabia'sco-brandedcarddelivers

Frequentflyerprogramsarestrongest

whenbothtypesofloyaltyareengaged.

transactionalloyaltyforthecarrier.

However,noloyaltyprogramcanovercometheproblemofafailedproductorservice.Evenapileofpointscan’tdeteracustomerfromexitingafailed

relationship.

Noteveryairlineshouldjumpintothispool.Globalnetworkcarriershaveadvantagesinthefrequentflyerarena:

●Margins.Highermarginscanmoreeasilyabsorbtheexpenseoftravelrewards.

●Product.Naturalservicecomponents,suchaspremiumclasscabinsandairportlounges,createopportunitiesformemberperksandrecognition.

●CorporateTravel.Thesizeablebusinesstravelercomponentoftheseairlinesrepresentsanimmediateaudienceforprogramparticipation.

●Scale.Bigglobalenterprisesarebetterequippedtocapturetheinterestof

banksthatissueco-brandedcreditcards,andthiscreatesnegotiatingleverage.

Airlineswhichlackanyoftheseelementsmustworkhardertocreateaneffectivefrequentflyerprogram,andthisisespeciallytrueforlowcostcarriers.

LowCostMeetsLoyaltyIdeaWorksCompany?2024Page7

LOYALTYPROGRAMSBOOSTTHELCCPRODUCTOFFER

ThisreportreviewstheprogramsofthefollowingtopLCCs:AirArabia,AirAsia,Azul,Frontier,GOL,IndiGo,JetBlue,Pegasus,VivaAerobus,andVueling.Thisisnota

listofthelargestLCCs;it’sasamplingofairlinesfromglobalregionsandprogramsthathighlightuniqueattributes.Forexample,Azul’sprogramhasbeenaroundsince2009,whileIndiGo’sprogramwasjustrecentlylaunched.Itshouldbenotedthat

AzulandGOLhavediscussingacooperationagreementbetweentheirprograms.

JetBlueandGOLareco-brandingchampswithmorethan$1billionfromco-brandedcreditcardsandotheractivitiesin2023.Vuelingistheonlyairlineonthelistwhichpartnerswithamajorloyaltyplatform(IAGLoyalty);theotherprogramsare

independent.Together,thetenprogramsofferanexceptionalsnapshotoflowcostloyaltytrendsandworthwhileideasforeveryairlinetoconsider.

TheLCCmodelidentifiedearlierinthisreporthasnowbranchedintotwoverydifferentpaths.The

traditionalpathhastheairline

workingtokeepitsoperations

simplified,whichisbelievedto

controlandminimizeexpenses.

Butbeyondthis,pricingcomplexityisnowembracedtomaximize

revenuefrompassengerfaresandalacartesales.

Thehybridpathisnewerand

evolvedasLCCssearchedfornewmarkets,suchas:long-haulflights,businesstravelers,travelagency

distribution,andpremium

consumers.Theseairlinesare

changingbecausetheyareluredbytheopportunityfortrafficfromnewsourcesandbettermargins.

Thisblursthehistoricdistinction

betweenlowcostandglobal

networkcarriers.Concurrentwiththis,traditionalairlinesarecuttingbenefitsbyintroducingbasic

economyfares.Thisoftenmeans

reducedpointsaccrualandtheloss

Azuloffersintercontinentalflights,lie-flatbusinessclassseating,airportloungesandcompeteswithglobal

networkcarriersintheUSandEurope.

DeltahasremovedthebenefitsofitsSkyMilesprogramforitslowestfarepassengers.

ofotherbenefitsnormallyassociatedwithtraditionalairlines.LCCsarerespondingbyeagerlyaddingnewservices,whichincludesfull-featurefrequentflyerprograms.

LowCostMeetsLoyaltyIdeaWorksCompany?2024Page8

REVENUEBASEDACCRUALPREVAILS

Thisreportreviewsthefollowingkeyattributesforthetenprograms:1)accrual,2)

rewards,3)elitetiers,and4)co-brandedcreditcards.Beginningwithaccrual,alltenprogramsapplyamultipliertobasefarestodeterminethenumberofpointsearned

foratrip.Thisrequiresthedesignationofacurrency,andthistypicallyisthehomecurrencyoftheairlineorsometimesUSdollars.Purchasesmadeinothercurrenciesareconvertedtothedesignatedcurrencytocalculateaccrual.

IndiGoandJetBlueencouragedirectbookingbyprovidingabonusforbookings

madeviathecarrier’swebsiteormobileapp.Keepingconsumerswithinthe“walledgarden”ofacompany’sappreducescomparisonshopping,whichismucheasieronalaptop.Vuelingaddsanelementofrevenuecomplexitybyusinglargeraccrual

multipliersforitshighermarginFlyandFlyGrandefares.Airlinesneedtodetermineifthisbonusencouragesconsumerstostepuptoahigherfare.

10TopLCCPrograms-AccrualSummary

Airline&Program

FareAccruala

AlaCarteAccrualb

PointExpiration

AirArabiaAirRewards

1USD=5points

Yes

24months

AirAsiaRewards

1MYR=1.5–2pointsbyfare

Yes

24months

AzulFidelidade

1BRL=1point

Yes

24months

FrontierMiles

1USD=10points

Yes

None,ifactiveduring12months

GOLSmiles

1BRL=1mile

No

36months

IndiGoBluChip

100INR=8points

Directbooking50%bonus

Yes

None,ifactiveduring24months

JetBlueTrueBlue

1USD=1-3pointsbyfareDirectbooking100%bonus

No

Noexpiration

PegasusBolBol

3TKL=2points

Yes

2ndcalendaryearafteraccrualyear

VivaAerobusDoters

2MXN–1point

Yes

24months

VuelingClub

1EUR=2–4pointsbyfare

Yes

None,ifactiveduring36months

Source:Reviewofairlinewebsites,October2024.a:Ifothercurrencyisused,conversion

occurstohome(listed)currency.b:Generallyincludesbaggage,assignedseating,etc.

Specificitemsqualifyingforaccrualwillvarybyairline.

LowCostMeetsLoyaltyIdeaWorksCompany?2024Page9

Promotingthepurchaseofalacarteservicesisacrucialcomponentofalowcost

carrier’sDNA.Withonlyacoupleofexceptions,theprogramsprovidepointsforthepurchaseofitemssuchasbaggage,assignedseats,andearlyboarding.For

example,AirArabiaprovides5pointsper1USDforbaggagepurchases,and

increasesthemultiplierto10Xformeals,tripinsurance,seatselection,andHalaairportservices.

Globalnetworkairlineshave

haddecadestoaccumulateanarrayofpartnersinkey

categories:accommodations,carrentals,mobilephones,

insurance,onlineshopping

sites,andtraditionalstores.It’sobvioustheeffortsbyLCCs

beganlaterandarefarless

robust.Thesamecategoriesareoftencovered,butwithfarfewerpartners.

Azulhasthelargestcollectionwithapproximately40partners.Thesuccessofitscreditcard

portfolioinBrazilhas

undoubtedlycontributedtopartnerinterestintheAzulFidelidadeprogram.

Thedevelopmentofapartnernetworkcreatesadditional

interactionwithmembers.This

AzulFidelidadegroupspartnersin4categories:daily

purchases,travel,carrental,andconsortium.Shownaboveisasampleofpartnerbrands.

isespeciallytruefordailypurchaseactivitylinkedtogroceryandpetrolshopping.

Addingpartnersrequiresadedicatedsalesstaffandadefinedcommercialpolicyforconnectingpartnersandmembersthroughtheprogram’scommunicationchannels.Beyondcreatingadditionalmomentsofcontactformembers,apartnernetwork

providesattractiveancillaryrevenuefromthesaleofpointstopartners.

REWARDSARELARGELYLIMITEDTOAIRTRAVEL

ThetypicalrewardstructureforLCCprogramsisminimalist.Onceagain,global

networkcarriershavetheadvantagesoftenure,bettermargins,andmorerevenuefromco-brandedcreditcardportfolios.Timehasallowedtheseairlinestoconsiderandnegotiatefinanciallyattractiverewardrelationships.MarginsandcardrevenuerestrictthefinancialabilityofLCCstospendcashonrewards.Lowcostcarriersarewiseinfocusingonairtravelrewardsbecausethesetypicallyrepresent90percentofrewardactivityinafrequentflyerprogram.

LowCostMeetsLoyaltyIdeaWorksCompany?2024Page10

Thepricingofrewardsisadecisionthataffectstheeconomicsofprogramsandhoweasilymemberscanunderstandthepayofffromparticipation.Threeoftheairlines

(AirArabia,AirAsia,andIndiGo)usethestraightforwardmethodofallowing

memberstospendpointslikecash.Thiscanextendtothepurchaseofalacarteservicestoprovidebettervalueformembers,whichtypicallyincludesbaggageandassignedseats.ThisisasensiblebenefitbecauseitreinforcesoptionalextrasasintegraltotheLCC’sbrand.PegasusandVivaAerobusallowmemberstospend

morepointstopayairporttaxes,whichisanunusual–butveryattractive–benefit.

10TopLCCPrograms-RewardsSummary

Airline&Program

AirRewards

AlaCarteRewards

PartnerRewardsc

AirArabiaAirRewards

100points=1USDonfares

Yes

No

AirAsiaRewards

100points=1MYRonfares

Yes

Yes

AzulFidelidade

Variablerewardprices

No

Varietyofrewards

FrontierMiles

Zone-basedrates

No

No

GOLSmiles

Variablerewardprices

No

Varietyofrewards

IndiGoBluChip

Variablerewardprices

No

No

JetBlueTrueBlue

Variablerewardprices

No

Varietyofrewards

PegasusBolBol

Zone-basedrates

Yes+

No

VivaAerobusDoters

Variablerewardprices

Yes+

No

VuelingClub

Variablerewardprices

Yes

No

Source:Reviewofairlinewebsites,October2024.c:Generallyincludesbaggage,assigned

seating,etc.+Pointsmaybeusedtopayairportfeesandtaxes.

GOLoffersalargearrayofrewardchoices,whichincludesvacationpackages,

merchandise,andgiftcards.Especiallyimpressiveisalistofmorethan50partnerairlines,suchasAirCanada,American,Avianca,Emirates,TAP,andTurkish.Thewebsiteprovidesaneasy-to-userewardbookingenginewhichtheairlineclaims

offersmorethan1,600destinationsin160countries.

GOLflightrewards:HereisasamplequeryforaSaoPaulotoCopenhagenflightonKLM.

LowCostMeetsLoyaltyIdeaWorksCompany?2024Page11

ELITETIERSAREASURPRISINGBONUS

Gold,diamond,andplatinumarepreciouselementsonerarelyassociateswith

budgettravel.Eightoftheprogramssurveyedprovideelitetierbenefits.Thisclearlydemonstratestheseairlinesareseriousintheirsearchforbusinesstravelers.Elite

tiersisacategorylongassociatedwithglobalnetworkairlines.TheseLCCshavemadeagenuineefforttoattractpassengersbygiftingsomeoftheperksthat

representthelifebloodofancillaryrevenue.

10TopLCCPrograms-EliteTierSummary

Airline&Program

EliteTiers

TypeofBenefits(willvarybytier)

BonusAccrual

Baggage

AssignedSeats

Early

Boarding

Lounge

AirArabiaAirRewards

None

AirAsiaRewards

3

.

.

.

AzulFidelidade

3

.

.

.

.

.

FrontierMiles

4

.

.

.

.

GOLSmiles

3

.

.

.

.

.

IndiGoBluChip

2

.

.

.

JetBlueTrueBlue

4

.

.

.

.

PegasusBolBol

None

VivaAerobusDoters

2

.

.

.

.

VuelingClub

1

.

c

.

Source:Reviewofairlinewebsites,October2024.c:10kgcarry-onprovided.

Amongtheeightelitetierprograms,herearesomeofthemorecompellingorunusualperksprovidedtothemostfrequentofflyers:

●Frontier:Alltierswaivechangeandcancelfees,7daysbeforedeparture.

●Frontier:Diamondstatusallowsafullrefundforeveryoneinabooking,whenthecancellationismadeatleastadaybeforedeparture.

●GOL:Diamondstatusallowsmemberstoredeemupto15segmentscappedata35,000-milerewardprice(evenwhentherewardpriceishigher).

●IndiGo:Blu3statusincludes40PrimePasses,offeringafreeassignedseat,prioritycheck-in/boarding,andonboardsnackcombo,forasingleflight.

●JetBlue:AllMosaicmembersmaychoosespecificperks,suchasanonboardpetfeewaiver,whichisvaluedat$125perflight.

LowCostMeetsLoyaltyIdeaWorksCompany?2024Page12

CO-BRANDEDCARDSAREUNIVERSALLYAVAILABLE

Thisisanothersurprisingoutcomeofthereviewoftenairlines:allofferaco-

brandedcreditcard.Creditcardsareanexcellentwaytocreatedailyinteraction

betweenmembersandafrequentflyerprogram.That’sbecausechargeactivity

occursfarmorefrequentlythanflying.Andofcourse,thesecardsalsodeliver

ancillaryrevenuetotheairline.Threeoftheairlinesinthesurveydisclosedloyaltyrevenues,asdisplayedinthetablebelow.

FrequentFlyerRevenueAnalysis-2023

Airlines&Program

FrequentFlyerRevenue

PerPassenger

JetBlueTrueBlue

$1,027,000,000

$24.15

GOLSmiles

$1,002,336,527

$32.36

AzulFidelidade

$887,944,871

$30.33

2024CarTrawlerYearbookofAncillaryRevenuebyIdeaWorksCompany

Theprofitabilityofaco-brandportfolioisdependentuponthreefactors.First,

interchangecapsinthehomemarketmustbesufficienttopermitcard-issuingbankstospendmeaningfulmoneyonthepurchaseofpointsfromtheairline.Second,thehomemarkethasflourishingconsumercreditactivity.Third,banksarewillingto

sharerevenuewithairlinesandeagertobringco-brandedcardstothemarket.

Whenthesethree“stars”align,airlinescanexpectasignificantopportunityforbigrevenue.Fewmarketsdeliverallthreefactors,andthereductionofanyelementleadstolowerportfoliopotential.InEurope,forinstance,interchangefeecaps

suppressco-brandviability.

Herearesomenotableco-brandedcreditcardfeatures:

●AirArabiaPlatinumMasterCard:Sign-upbonus,freeroundtriptickettoanydestination(yearly),free10kgcheckedbaggage,2onboardmealvouchers

(yearly),twofreeairporttransfers(yearly),andMasterCardloungeaccessat20+locations.

●AzulItauVisaInfinite:10percentdiscountontickets,ClubAzul,andAzul

Vacations,upto3freecheckedbags,airportloungeaccess,unlimitedaccesstoextralegroomseats,cabinupgradevouchers(spendbased),prioritycheck-in/boarding,andDiamondelitestatusintheAzulFidelidadeprogram.

●FrontierAirlinesWorldMasterCard:Sign-upbonus,twofreecheckedbags,$100flightvoucher,andGoldelitestatus.

Theabovecardseitherdon’tchargeanannualfee,orwaivetheannualfeebaseduponspending.AirArabiaandAzuloffersurprisinglyextensivebenefitsthataddveryrealvalueforprogrammembers.

LowCostMeetsLoyaltyIdeaWorksCompany?2024Page13

THESEPROGRAMSPROVIDEMOREPERKS

Itwouldbeeasyfortheseloyaltymanagerstostopatthebasicsofaccrual,rewards,andco-brandedcreditcards.Theywentfurtherbyaddingfullfeaturedelitetiers.

Thisfinalsectionreviewsadditionalgoodiesthatafewhavesprinkledontheirprograms.

AirArabia,Frontier,GOL,andJetBlueprovidepoolingbenefits.Thisallowsasmallgroupofmemberstodirecttheirpointstoamasteraccountholder.Butthat’swherethesimilaritiesend,witheachairlineofferingadifferentmethod:

●AirArabia:Upto8definedfamilymemberscanpoolpoints.Forthose

participating,theairlineassessesacostforthebenefitbyaforfeitureof50percentofthepointsaccrued.

●Frontier:Thebenefitisprovidedforelitetiermembersandco-brandedcreditcardholdersasthe“head”ofthepool.Upto8otherfriendsandfamilycanbeinvited(theyneednothavestatusoracard).

●GOL:ClubSmiles,thecarrier’sloyaltysubscriptionprogram,includespoolingbenefitsforupto6totalfriendsandfamily.

●JetBlue:Standardpoolingarrangementforupto7totalfriendsandfamily.

Beyondpooling,thefrequentflyerprogramswerefoundtoofferadditionalnotable

perks.“PerksYouPick”providesbenefitsbeforeaTrueBluememberreachesthefirsttier,andbetweeneverytier.Theideaistokeepthemotivationtapwideopen

withlittlegiftsthemembercanpickforthemselveseverytimethememberspends$1,000onflights,alacarteservicesorvacationcomponents.Thisactivity(or

$10,000increditcardspend)accrues10tiles.Uponearning10tiles,memberscanselectoneperkfromthoseshowninthegraphicbelow.Themenuof“PerksYou

Pick”changesafterelitestatusisattained.PerksYouPickareprovidedinadditiontothecarrier’sregularelitestatusbenefits;overallit’saverycomplexoffer.

PerksYouPicklasttherestoftheyearinwhichtheyarechosen,andforthefullsubsequentyear.

LowCostMeetsLoyaltyIdeaWorksCompany?202