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Loyalty

Program in
Jet Airways

Loyalty Programs in Airlines


Frequent Flyer Program is the loyalty program offered by many airlines.
Airline customers accumulate frequent flyer miles corresponding to the distance flown on
that airline or its partners
Acquired miles can be redeemed for air travel, other goods or services, or for increased
benefits, such as travel class upgrades, airport lounge access, or priority bookings
Airline Mileage programs are
designed to be psychologically
attractive, even addictive, to
customers.
Their benefits have decreased so
too has passenger loyalty

Do Loyalty Programs matter ?


44% of business travellers and 72% of highfrequency business travellers participate in
more than one airline loyalty program
Share of wallet for a preferred airline is
significantly low
44% of all travellers and 40% of business
travellers fly at least 3/4 of their air miles on
their preferred airline
1/3 of business travellers fly fewer than half
of their air miles on their preferred airline
Travellers ranked loyalty programs as only the
19th and 18th most important attribute when

About Company
Inception in the year 1993,
Mumbai based organization
2nd largest airline in India
IATA
i.e.
International
Air
Transport
Association
registered
IATA is the quality audit for
operational management and control
systems evaluation

300 flights per day to 74


destinations
Corporate
Market share
of
Partnerships
and Interline
Jet Airways 17.1% , Jet Lite
Partners
To smoothening the process of
5.4%
International Travelling, Codeshare
partnerships with Air Canada, Kenya
Airlines etc.
Interline Partners 148 Interline
partners and 98 interline e ticketing

Mission
To achieve the pre-eminent position by offering a
high quality of service and reliable, comfortable
and efficient operations.
Jet Airways will achieve these objectives whilst
simultaneously ensuring consistent profitability,
achieving healthy, long-term returns for the
investors and providing its employees with an
environment for excellence and growth.
Glimpse of Awards and Accolades
Wines on the Wing award in Global Traveller
magazine.
Monitor Award for Best In-flight Meal in Economy for
2012
Freddie Awards 2013 for Best Promotion for
JetPrivilege's 20% discount for online redemption of

JetPrivilege: Key
features

Highlights of Privileges?
Check-in at premier counters
Lounge Access
Additional Baggage Allowance
Priority Baggage Handling
Guaranteed Reservation up to 24 hours
before departure
Upgrade Vouchers

Five Membership
What members Get?
tiers
Earn more miles
Blue
Enjoy more
Blue Plus
benefits
Silver
Quicker tier
Gold
upgrades
Exclusive
Easier tier
platinum
renewal
What
makes it true winner?
Easier
JetPrivilege membership updates on
redemption
Ease of enrolment
SMS
Transfer JPMiles
Five membership levels
Multiple mileage earning
JPMiles Upgrade
Faster tier upgrades
opportunities
Cash Upgrade
Easier Tier Retention
Bonus JPMiles on e-Services
Global partnerships
Personalized web access
Purchase JPMiles

Won 'Program of the Year' at the Freddie Awards five times in a row in the Japan, Pacific, Asia
and Australia region

Privilege TVC https://www.youtube.com/watch?v=RQ9Wsz7ewTw

Tier Evaluation
Tier JP MILES
It is a term used for the mileage points that guest can earn when he flies on jet
airlines or their partner flights
These points can later be redeemed for benefits and goodies based on eligibility
Tier JPMiles = Base JPMiles + Cabin Bonus
The number of Base JPMiles (TPM - Ticketed Point Mileage) earned is the direct
travelled distance between the origin and destination city-pair
Cabin bonus is based on the cabin travelled in: First class, Premier or Economy
TIER POINTS
Similar to JP miles but rewarded based on the number of flights taken and the
type of flight (international or domestic)

Tier Upgrade
6 month Fast Track upgrade: On a daily basis, DTR looks at Tier Points and Tier
JPMiles earned in the preceding 180 days; offering faster tier upgrades based on
frequency and recency of travel
12 month Standard upgrade: On a daily basis, DTR also reviews Tier Points and
Tier JPMiles earned in the preceding 365 days for a tier upgrade

MyFamily+
MyFamily+ account is offered to JetPrivilege members who also are family
members
Family members with individual JetPrivilege accounts can join their accounts
into one single MyFamily+ account
JPMiles belonging to individual member accounts can be pool in into the
MyFamily+ account
JPMiles can be redeemed for flight tickets through normal redemption process

Business Rewards+

Designed for Small and Medium Entrepreneurs (SMEs); enables them to gain
from the expenses of their Business and their Employees.
Allows companies to link their employees to a single Business Rewards+
account so that for all business related expenses undertaken by the company
and employees, companies get rewarded with JPMiles
The accumulated JPMiles can then be redeemed for complimentary flight tickets
to destinations of choice
Membership to the Business Rewards+ is available only by subscribing to the
Corporate Co-brand Credit Card offered through the Banking Partner (American
Express)

Airline

Brand
Associations

Kingfish
er

Loyalty Program Elements

Upscale
Premium
Indian Pride

High class
business
travellers
Heritage
Lovers
Public
Sector
Executives

Redeemable Points earned on the basis of destination


and distance travelled on partner flights also.
Free travels, goods and benefits, class upgrades and
Lounge facilities.
Bonus point segregation on distance, class, tier
membership(Base, Silver, Golden, Maharaja dependent
on miles travelled) and partner Airlines.

Best in class
facilities
International
standards
Convenience
Premium
Business
Travel

High end
Business
Leisure
travels

Redeemable Points earned on the basis of destination


and distance travelled on partner flights also.
Free travels, goods and benefits, class upgrades and
Lounge facilities.
Tier Separation in terms of Blue, Blue Plus, Silver, Gold
and Platinum.
Benefits differ in each tier in terms of tele-check in,
delayed reservations, Cancellations, pre-reservation,
check-in, excess baggage and Lounge Access

Upper SEC
Modern
Upwardly
mobile
Follow

Club Members earn King Miles for flying across four


levels: Red, Silver, Gold and Platinum
Members enjoy Kingfisher Lounge, Priority Check-in,
Excess Baggage, Bonus Miles and Upgrade

Air India

Jet
Airways

Target
clients

Good Times
Fun
Youthful
High Class
Premium

Third Party Conversion of Points

Credit Card
Partners

American Express
Axis Bank
Barclaycard
Citibank
HDFC Bank
HSBC
ICICI Bank
i-mint
Induslnd bank
RBS
SBI Card
Kotak Credit Card
Punjab National Bank
Standard
Car
RentalChartered
Bank

Partners
Avis
Hertz

Retail Partners

Arrow
Ethos Swiss Watch
Gaurdian
Odyssey
Pavers
Van Heusen
Titan

Entertainment
Partners
Seventymm

Telecomm. Partners
Matrix
Tata Teleservices

Publishing Partners
Lifestyle Partners

JetEscapes
JetBoutique
Jetair Tours
Globus
Green Trends
Limelite
Regus
Style Spa
Trip Advisor.com

Architecture
Homes and Gardens
BS Motors
Business Today
Case Viva
Child
Discover India
The Economist
Fortune
Golf Style
Inc. India

Evaluation of Program
Integration of Program with other members(airlines and others) for
facilitating redemption and accrual across the members
More than 50 partners across eight different industries

Increase frequency of travelers


Passenger load factor increased from 77.4 in 2013 to 78.6 in 2014
Yield increased by strong 6.4 %

Provide profitability to core customer base


Partnership with Etihad to restructure the program
Restructured its loyalty program to appease customers

Derive profitability for itself

Posted profit in Oct 2014 after two years of Loss


Total revenue went up by 13.9 % to INR 4277 Crore
Total INR 875 gained from its loyalty program
Cut Losses to INR 43 Crore from INR 999 Crore in Second Quarter from last year

References
http://www.jetairways.com/doc/FactSheet_JetAirways.pdf
http://
www.dnaindia.com/money/report-jet-posts-first-quarterly-profit-in-two-years-203308
8
http://
faculty.haas.berkeley.edu/robinson/Papers%20DOR/Customer%20Loyalty%20Program
s.pdf
http://
www2.deloitte.com/us/en/pages/about-deloitte/articles/press-releases/airline-loyalty
-programs-to-encourage-real-loyalty.html