Ai Events | Airline Information

Managing FFP liabilities by leveraging actuarial science Frequent flyer programs benefit various stakeholders including travellers, airlines and other merchants, but they also generate financial obligations for #airlines. In this context, effectively managing #loyaltyprogram liabilities is essential for the long-term financial stability of airlines. The industry has relied on actuarial models to estimate these liabilities by considering factors such as program rules, including point expiration and blackout dates, #redemption trends, and airline-specific variables. This is in addition to studying the profile, spending pattern and behaviour of the target audience. Counting on actuarial science One of the key aspects of managing liability is the reliance on actuarial science and predictive models, which contribute in several ways. Firstly, they aid in the evaluation of future liabilities, allowing airlines to avoid financial surprises through reliable assessments. Secondly, they help optimise loyalty program benefits by enabling airlines to design programs that balance customer satisfaction with financial sustainability. Thirdly, these models assist in identifying risks and opportunities. Lastly, they provide the data and insights necessary for making informed decisions about #frequentflyerprograms (FFPs). All of this plays a vital role in ensuring a top-notch member experience. For example, by analysing redemption trends and acting on data related to point redemptions, airlines can better predict future redemption behaviour. Additionally, it is an ongoing process. By leveraging data and analysis, airlines can gain valuable insights into customer behaviour and continuously refine their actuarial models. Airlines that adopt actuarial science and predictive models will be well-equipped to effectively manage FFP liabilities. By Ritesh Gupta, Ai Events Christopher Staab Binay Warrier Piotr Kozlowski 💡 Bindu Gupta, Charles Ehredt Trevor Clarke Erin Murray Paul Smitton #FFP #miles #points #airlines #hotels

Enhancing flexibility in redemption options #Cobrand2024 Airlines, while making strides in enhancing the value of #miles and #cobrand spend, tend to fall short in the area of flexible #redemption options. The experience and expectations of #creditcard users or members of a #frequentflyer program can go awry when they face restrictions in award seat availability during peak travel seasons. This scarcity makes it difficult for customers to redeem miles for popular destinations and dates, leading to frustration and disappointment. One significant impediment is the imposition of blackout dates by many airlines. These dates restrict award travel during busy periods, such as holidays, further limiting options for travellers. Additionally, some airlines impose high fuel surcharges and fees on award travel, which can significantly reduce the value of miles. Often, these fees are unclear at the time of booking and can add up quickly, making the overall cost of award travel higher than expected. Strict cancellation and change policies for award travel also pose challenges for customers. If travellers face penalties or lose their miles due to unforeseen circumstances, it creates a negative experience that discourages future redemptions. Moreover, the fluctuating value of miles can complicate planning, as the worth of miles may vary significantly based on demand and availability. The complexity of the redemption process itself can be another barrier. With varying rules and restrictions across different airlines and programs, customers may find it confusing to navigate their options. This complexity, combined with a lack of transparency regarding how miles can be redeemed and the associated costs, hinders users' ability to make informed decisions. Addressing these impediments could enhance the overall experience for frequent flyer program members and credit card users, making it easier for them to redeem their miles and enjoy the benefits of their loyalty. How should airlines go about managing redemption options better? Explore the same at the upcoming Ai Events' Co-Brand & Travel Rewards 2024 in Wilmington, Delaware (6-7 November, 2024) : https://lnkd.in/ezgufdnk By Ritesh Gupta, Ai Events Christopher Staab Scott Harrison Anna Shimova Trisha Asgeirsson Marc Berman Carissa Dougall Switchfly cxLoyalty iSeatz Loyalty & Reward Co arrivia Skeps Rokt TripGift® - Travel Gift Cards

Curbing fraud during the design phase of a loyalty initiative Loyalty specialists must delicately balance member experience and #fraudprevention during the design phase. A focus on ease of use, simplicity, and accessibility can enhance member satisfaction, while stringent security measures can mitigate fraud risks. Such balancing act relates to working on a sublime member experience (focusing on ease of use, simplicity and accessibility) and dealing with fraud and security (putting in restrictions, reducing vulnerabilities, protecting at all costs and so on). Bond Brand Loyalty’s Trevor Clarke highlighted the connection between security and member satisfaction. When #loyaltyprograms securely handle personal information, members are significantly more (3.2 times more) satisfied. Referring to the balancing act during a webinar by the Loyalty Security Alliance, Clarke cited an example of #giftcard redemption. In this case, member experience would prioritise aspects like avoiding restrictions like max one per day, three-day waiting period and mandatory multi-factor authentication (#MFA). And how about max five per day, one-hour waiting period and optional MFA, where this could be a more favourable experience for the member and at the same ensuring fraud possibilities are curbed. This also means that doing the fraud check in the background to make sure #UX isn’t disrupted. It is also imperative to work out certain control mechanism from the beginning. Points to consider Other than evaluating costs associated with fraud with any loyalty initiative (cost of fraud, fraud tools and resources), companies also must look at program design fraud considerations. These include redemption options available, the immediacy of the reward and the needed validation, custom data that is being captured, what behaviours consumers are willing to accept etc. Clarke also highlighted the significance of aspects like prevention, detection and monitoring (velocity rules and anomaly detection), alerts and reporting (notification messaging, exception reports and audit tracking) and #cybersecurity (vulnerability testing, security monitory etc.). Other than the balancing act, it is also important to bring together #CX and Fraud and Security teams early in the design process.  “Also, continually test and learn, and review, refine and update related policies,” recommended Clarke. By Ritesh Gupta, Ai Events Christopher Staab Bond Brand Loyalty #loyaltyprogram #FFP #fraudprevention #miles #airlines #hotels #travel

Marriott/ FTC settlement a wake-up call for loyalty program security A #cybersecurity specialist has termed the Marriott/ FTC settlement as a wake-up call for #travel companies with #loyalty initiatives. This month Marriott International reached a settlement with the Federal Trade Commission (FTC), agreeing to pay $52 million as well as to restore loyalty points stolen by #cybercriminals from its Bonvoy program, which has over 200 million members. The settlement arises from multiple high-profile data breaches, where sensitive customer information was compromised, affecting millions of guests, stated Kasada. Commenting on the development, Kasada’s Jesse Martin-Alexander said, “It shouldn't come as any surprise that changes in regulatory practices will affect the way we calculate risk, and in turn the value of safeguards. What did come as a surprise to many, is the FTC's inclusion of loyalty points as part of a breach settlement, and the potentially huge additional cost implications for a data incident in the future.” The company highlighted that the FTC decision signifies a shift in how federal agencies perceive the impact of losing loyalty points for consumers. It may set a precedent for future data breaches or cyber incidents in the travel industry, emphasizing the need for robust security solutions that prevent account takeover (ATO) and loyalty fraud. Plus, breach risk analysis, which could often be calculated on a cost-per-record compromised basis, must now be updated to include the added cost of loyalty points restitution, which may be highly variable. Watch Kasada’s recent webinar with Loyalty Security Alliance: https://lnkd.in/emzCUkFN Ritesh Gupta Christopher Staab #FFP #loyaltyfraud #miles #points #automation #fraudprevention #machinelearning #AI

Evaluating the impact of tech giants on co-branded credit cards #CoBrand2024 As tech giants like #Apple and #Amazon expand their #financialservices offerings, it's crucial to examine how they're positioning themselves to capture airline-related spending. These companies can count on their massive user bases and bargaining power to offer unique and attractive #rewards programs. It is important for all the stakeholders to assess what is being done to work on innovative rewards programs beyond traditional cash-back or points-based offerings. - Is there any major partnerships with major US airlines in the pipeline? - How can these tech companies looking at capitalising on their respective ecosystems to integrate such co-branded credit cards? For instance, in the case of Apple, the company counting on its iPhone ecosystem, offering features like easy enrolment, digital wallet integration, and personalised travel recommendations. Or Amazon leveraging its data analytics capabilities to offer tailored rewards based on cardholders' travel preferences and spending habits. Amazon offering Prime members exclusive travel benefits or integrate their co-branded credit card with Prime Day deals. It's essential to evaluate how large #banks, #fintech start-ups, and payment networks are responding to changes. Airlines must also consider their target customer segments and tailor their co-branded card offerings accordingly. Points to consider: - Customer preferences: How are customer preferences changing in terms of co-branded #creditcard benefits and features? - Regulatory implications: What are the potential regulatory challenges and opportunities associated with the growing influence of tech giants in the co-branded credit card market? - Global trends: How are these trends playing out in other regions, such as Europe and Asia? If you would like to explore how co-branded credit cards are shaping up, then Ai Events' Co-Brand & Travel Rewards 2024 in Wilmington, Delaware (6-7 November, 2024) is an apt event: https://lnkd.in/ezgufdnk By Ritesh Gupta, Ai Events Christopher Staab Scott Harrison Loyalty & Reward Co Ryan Calder Marc Berman Amanda Cromhout Carissa Dougall Lia Grimberg, #FFP #travel #miles #creditcards #airlines

Improving upon the value of miles and co-brand spend #Cobrand2024 Airlines know the value of going beyond the traditional metrics of #miles and #cobrand spend to deliver experiences that resonate with individual customers. This way #airlines can foster deeper emotional connections with their customers beyond transactional interactions. How can they improve upon the value of miles and co-brand spend? Some points to consider: ·         How can airlines use customer journey mapping to identify pain points and opportunities for improvement in the overall travel experience? ·         How can airlines effectively gather and analyse customer feedback to gain valuable insights into their preferences and needs? ·         How can airlines use data and technology to personalise the traveller experience, offering tailored rewards and benefits based on individual preferences? ·         How can airlines create emotional connections with customers by providing exceptional service, memorable experiences, and a sense of belonging? It is imperative to look beyond the traditional metrics of miles and co-brand spend. Hear from experts about the same at the upcoming Co-Brand & Travel Rewards 2024, scheduled to take place in Wilmington, Delaware (6-7 November 2024): https://lnkd.in/ezgufdnk By Ritesh Gupta, Ai Events Christopher Staab Charles Christianson Mike Petrella Lia Grimberg, Lance Blockley Rob Daniel Kenneth Purcell iSeatz TripGift® - Travel Gift Cards cxLoyalty arrivia Loyalty & Reward Co Skeps Switchfly TWAI KSG Allianz #travel #miles #creditcard #loyaltymarketing #FFP

Co-brand and travel rewards 2024 is just two weeks away! Some interesting statistics from EMARKETER and Grace Broadbent that a YouGov report says that just 25% of Americans have a co-brand card. Which shows the size of the potential opportunity to get more cards in to more hands. Which is what Ai Events | Airline Information's 2024 conference is all about! Delighted to announce that Scott Harrison from Loyalty & Reward Co will be chairing the conference. Scott is one of the co-authors of the best selling book the Complete Guide to Loyalty Programs. And, if you are registered and coming to the event you'll be able to get a complimentary copy of the book. It really is a great read and combined with a great line up of speakers will make for a very useful couple of days out of the office! More details on the event here: https://lnkd.in/ezgufdnk

The power of micro-rewards in airline loyalty #Cobrand2024 Micro-rewards play a vital role in the airline industry, from driving the earn-and-burn loyalty cycle to boosting #cobrand spend, especially for those who rely on these strategies to manage their #miles effectively. Instead of solely offering traditional #rewards like free flights or upgrades, airlines have been offering smaller, more immediate benefits that cater to customers' specific needs and preferences. For example, partnerships with streaming services could provide complimentary in-flight entertainment, while collaborations with food delivery apps could offer discounts on airport meals. By integrating these micro-rewards into frequent flyer programs, airlines can create a more personalised and engaging experience for their customers. This approach can also drive incremental revenue by encouraging customers to spend more with co-branded partners. Additionally, micro-rewards can be a powerful tool for strengthening customer loyalty. Cost-benefit analysis However, implementing micro-rewards requires careful consideration. Airlines should evaluate whether these rewards align with their brand image, program structure, and overall philosophy. Factors to consider include the technical and operational capabilities of the FFP program, the potential impact on customer acquisition and retention, and the overall cost-benefit analysis of offering micro-rewards.   Hear from experts about the same at the upcoming Co-Brand & Travel Rewards 2024, scheduled to take place in Wilmington, Delaware (6-7 November 2024): https://lnkd.in/ezgufdnk By Ritesh Gupta, Ai Events Christopher Staab Charles Christianson Steve Mathwig Trisha Asgeirsson Scott Harrison #cobrand2024 #creditcard #loyaltymarketing

Social impact through storytelling Brands should engage loyal consumers with meaningful narratives to inspire their participation in socially responsible initiatives. This approach can create a positive impact on society. Companies must also ensure that loyal consumers feel confident that their donations are making a significant difference. During a webinar today, Kevin Crowe, Founder of Give a Mile, emphasised the power of donations and charity-related initiatives to foster brand #loyalty. Give a Mile enables people to visit terminally ill friends and family by crowdfunding flights through micro-donations of travel points. Amanda Cromhout CADipL™️ mentioned that by focusing on authentic storytelling and making the world a better place, brands can create lasting connections with consumers. Andy Choi , Do Good Points discussed how technology can merge with philanthropy to transform giving. The webinar also featured Suzanne Tyson and Erin Murray. Key considerations include: ·         The power of community: Working together can motivate, support, and empower individuals to do more good. ·         Building brand equity with creative social good campaigns: Avoid repetitive messaging and leverage opportunities to engage consumers who want to contribute. ·         Recognising loyal contributors: Use proven methods of gamification to activate the desire to do good that exists within everyone.   These are some of the way in which brands can effectively harness the power of philanthropy to create a positive impact on society and strengthen their relationships with consumers. By Ritesh Gupta, Ai Events Christopher Staab #travel #points #miles #loyaltymarketing #CSR

Banking on split payments to reduce payment failures One of the leading causes of abandoned online shopping carts is insufficient funds on the primary payment card. This is particularly problematic for high-value purchases, such as flights. To address this issue, card splitting offers a promising solution. By allowing customers to divide the total purchase amount across multiple cards, card splitting effectively increases their purchasing power. Benefits of card splitting By providing customers with more flexibility in payment options, card splitting can significantly reduce the number of abandoned carts. Also, when customers can pool their resources to make a joint purchase, it can lead to larger order values. Card splitting allows customers to use cards that offer different rewards or benefits. So what should merchants consider to implement card splitting effectively? How to go about aspects such as easy-to-use interface, securing customer data, integration with the merchant's payment gateway etc.   Air Europa and Hands In have demonstrated successful card splitting implementations in the travel industry. Their approaches include:   ·         Allowing the lead booker to split a payment equally among other travellers on the same trip. ·         Providing a convenient way for travellers to contribute their portion of the cost using a shared link. ·         Enabling passengers to split costs across multiple cards to maximise their purchasing power. Webinar: Yago Casasnovas Casanovas, Head of Payments, Fraud and Distribution at Air Europa, Samuel Flynn, CEO of Hands Inn and Raul Patel, CTO at Hands In are scheduled to feature in a webinar on November 19 (10am ET). https://lnkd.in/gdNRjjFX Ritesh Gupta Christopher Staab Paul Spooner Angella Esposito