Last week, I spent three days in Kuala Lumpur, Malaysia, hanging out with Loyalty marketing professionals from around the world at the Loyalty 2010 conference. I met a number of very talented and interesting people, from airlines, hotels and even retails chain that are trying to drive loyalty.

Also part of the event was the Loyalty 2010 Awards for the Most Innovative Loyalty program. The judges had shortlisted the Top 3, and the audience voted for the best. Air Berlin came out tops, though I think each program was very unique. And I share with you here, what makes them so good!

1. Air Berlin’s MyRoute customers earn double miles on their frequently flown routes
Try to solve this problem. You need to get price sensitive customers to fly you on their most-flown routes, which are also the most competitive due to many airlines offering an undifferentiated product on those routes. You know you got to think out of the box when solving this one. And Air Berlin’s Johannes Ganser and Sophie Wennekers, along with their Loyalty Marketing team, did just that.

In April 2009, the airline launched MyRoute where members select …

I often get asked by senior airline executives and readers of this blog, “How can we deal with real-world PR crises using social media?” Well, the recent war of words Facebook and Twitter posts between RyanAir and SAS Scandinavian Airlines offers a number of lessons in the matter.

For the unaware, here’s a a gist of what happened. Just a few weeks ago, Ryanair said it would offer SAS executives and board members “free tickets on any of Ryanair’s 100 Nordic routes”, then surprisingly rescinded the offer. Nevertheless, SAS’ Director of Communication and EVP, Claus Sonberg, made his first flight with Ryanair from Oslo to London, which could be followed via both Facebook and Twitter.

What was meant to be just an update about the flight experience turned out to be an online “shouting match” with Claus pointing out how RyanAir was more expensive and a “Fletcher Reede” constantly brought out RyanAir’s perspectives. So now, what are some lessons airlines can take away from this?

1. Integrate new media and old media
Something I feel SAS did quite well in this matter was to make …