FFP spin-off is just the beginning
Over the last few months some airline groups have announced their strategic plans to spin their Frequent Flyer Programs into separate business entities. The strategy is aimed at improving FFP economics through transforming them into multipartner schemes. However, the employment of adequate technology should not be forgotten.
FFP spin-off provides new membership value to non-frequent travellers who are price-sensitive pickers of cheap, yet restrictive, tariffs or occasional travellers. This segment of airline clients is given more opportunities for FFP points/miles accrual and for redemption activities in a multipartner scheme than in a classic FFP. A spin-off also improves program economics due to the currency spread between the value of accrual miles issued to partners and their later redemption value.
Therefore, the strategic shift raises new requirements regarding IT. New types of FFPs are actually hybrid programs possessing features of both classic FFPs and loyalty programs from the retail industry. Comarch is a well-known supplier of technology empowering loyalty programs in the retail sector. Apart from running a number of FFPs and airline B2B schemes, we possess extensive experience in servicing:
- Supermarket and petrol chains across Europe and North America
- One of the largest hub airports in Europe offering splendid shopping opportunities at its Airport City
- A leading telco operator from North America
- Banks in Europe, South America and the Caribbean
- Pharmacy chains and logistic operators in Europe
- Multipartner scheme operators in Europe
With our excessive experience in empowering FFPs and loyalty programs of various types, we are well-positioned to be a partner of any airline group planning to offer a spin-off FFP scheme. Do not hesitate to contact us to learn more about how our experience gained from the retail industry can help transform your FFP into a fully-fledged multipartner scheme!