Very often you would have come across the rewards programs of the airlines. In a competitive industry, where there are a number of airlines offering their services and the customers look around for cheap air tickets every time they fly, it is vitally important for every airline to retain the existing customers. For this reason, there are rewards programs for the loyal travelers as well as for the frequent travelers. Different airlines operating domestically or providing cheap international flights to customers have their own set of rewards programs for frequent and loyal travelers. These rewards enable you to earn certain free miles or for shopping at select outlets for select products. Certain rewards programs as hailed as better than the other based on certain criteria. These criteria are the characteristics of the rewards program. Some of these which make the best rewards program are:
1.Goods are such which are bought frequently bought by the people. If the rewards are to be redeemed by shopping, then the products shall be such that these are bought quite frequently by the people. This way the people will be able to redeem frequently for the products which they need quite regularly.
2.Program shall provide the choice of the provider to the customer: If the rewards program does not provide much choice to the customer and the choice which is provided is not to the liking of passengers than this will discourage the people from flying in that airline. Therefore, the airlines shall incorporate more providers into their rewards programs so that the passengers have the choice of making a selection.
3.Tier-based membership: A two, three or four tier membership structure is best suited for the rewards programs. While the airline tries to attract more customers by offering lowest air fare, the entry level rewards programs enable the airline to retain them. So, they would be attracted to the airline for the subsequent times. Further, the people who fly using a particular airline quite often would also like the airline to reward them in a way better than the entry level. So, a middle-tier rewards program helps these customers. Similarly the frequent flyers need even better rewards. So, a multiple-tier rewards program serves the interests of all, giving them the reasons to fly loyally with the airline.
So, besides offering the cheap air tickets to customer, the airline needs to develop a rewards program which is actually liked and used by the people who buy cheap international flights or the lowest air fare domestic flights to their benefit.