Randy Petersen of Flyertalk on airline branding – Part 1 of 2

Shashank Nigam — Wed, 29 Apr 2009 04:17:43 +0000

“True brand loyalists should ideally fly due to a deep emotional connection, not just miles.”

“Your most valuable customer is like your best friend. He’s there with you even in the tough times.”

These are just a couple of gems Randy Petersen shares in his interview with SimpliFlying, Live from Fort Lauderdale, Florida. For those who’re not aware, Randy is the man behind InsideFlyer and Flyertalk.com. He is the champion of frequent fliers around the world, and the organizer of the Freddies.

Randy and I met on the sidelines of the 21st annual Freddies and the FTMA Conference. At the conference itself, Randy led the panel discussion with me, after my keynote on airline branding and Web 2.0. It was an honor to be on the stage with the aviation industry stalwart and interview him for SimpliFlying afterwards.

Is a frequent flier a loyal customer? Nope.

Randy feels that the current miles as an incentive system only shows you frequency of travel, but doesn’t show you recommendation, it doesn’t show you passion. And hence it doesn’t even prove loyalty.

Lessons from Apple and Nike about branding?

If there were no frequent flier miles, which airline would people fly? That’s the true test of brand loyalty. Randy only wears Nike shoes and buys Apple Macs (he has 50 of them!!). And he does this without Apple or Nike giving him any rewards for his loyalty. Randy explains one of the reasons he likes Apple because it is the beacon of simplicity. His advice for airlines? Why not make frequent flier reward programs very-very simple to understand?

The “most valuable customer”?

At the FTMA conference, there was a healthy debate about who’s the most valuable customer for an airline. Randy feels that the most valuable customer is not just one who flies you when it’s most convenient for them, but also when it isn’t as convenient for them. A customer becomes more valuable when he goes out of their way to fly you.

Without revealing much more of the wisdom Randy shares, I’d like to invite you to hear it from the man himself. Just click play on the video below. Part 2 of this interview will be published tomorrow, where Randy speaks about social media for airline branding, and the future of Flyertalk.com

Five clever ways to earn frequent flier miles for upgrades

hansen — Fri, 26 Sep 2008 20:21:10 +0000

Image by msmail via Flickr

Some of us have jobs important enough to fly business class frequently. Are the rest of us destined to be packed into cattle class unless we pay an arm and a leg for business? Not really, even when it is generally getting more difficult to earn and claim Frequent Flier miles.

But frequent fliers are often pampered by the airlines in a variety of ways. So why not try out a few interesting techniques to be taken good care of in the air? Here are five ways the clever people earn and use their miles, especially for upgrades.

1. Just Fly It!

The fastest way to earn an upgrade is to earn miles, especially if you fly frequently. A return trip from Singapore to New York on Singapore Airlines economy class generates nearly about 20,000 miles, not far from the 30,000 miles needed for a one way business class upgrade, or a free economy ticket to Hong Kong. Stick to one major airline, or network such Star Alliance or One World. Do take note that super discounted fares may appear attractive but do not usually qualify for miles accruing.

2. Splurge on Regional, upgrade on International

Passengers may want to consider paying to fly premium on regional routes and using miles to upgrade on international routes. This is simply because the costs are so much more manageable. The actual price difference between an economy and business ticket begin to widen with trip distance. Yet flying comfortably is so much more important on long hauls. Splurging on regional and upgrading on international reduces costs substantially. However, this would not work if the majority of the sectors that the passenger is intending to fly are long haul.

3. Swipe your way to an upgrade

Co-branded credit cards are common and available across the globe for major airlines. Singapore Airlineâ€™s most premium credit card, the American Express Singapore Airlines PPS Club Platinum card, earns a mile for every dollar spent. To earn a trip from Singapore to Hong Kong, the card holder would have to spend S$30,000 for a return ticket on economy class. While credit cards can be useful to top up that few thousand miles that you need for your next Business ticket, depending on credit card alone for a fee ticket, or even an upgrade could take ages.

4. Cheap Skating

The underlying theory is simple; Fly the business class with the lowest price on the airline in the same network, earn the miles, and splurge it on the upgrade somewhere else. For example, Singapore Airlines charges well over S$3,000 for a business ticket from Singapore to Hong Kong. Unitedâ€™s business on the same route is about S$2,100 while Thai charges about S$1,800. The theory is to fly Thai or United on business and use it for future upgrades on Singapore Airline for maximum returns.

5. The Long-Hauler

Many airlines have recognized that there are a group of passengers who are unable to afford a full business class ticket, but willing to pay a little more for more comfort. Premium economy has evolved into a market of its own to target full fare paying economy passengers willing to pay a little more for more comfort and space. For self-paying long haulers, this could be the most value for money option. Most airlines offer generous seat pitch of around 38in and a dedicated attendant to offer better service. A 20-50% premium is usually charged over economy seating, which is a steal, considering that a business class may cost 5-8 times over the economy ticket. Qantas new premium economy, for example, is well worth the money. Do take note, however, that premium economy is usually housed in a small section and seats do run out quickly. So book early.

SimpliFlying || Aviation :: Branding :: Technology || Airline marketing, airline brand management, social media, Web 2.0 » Frequent fliers