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  Volume: XXII, Issue No. 19 May 16-31, 2013  
     
 
   
 
   
  AVIATION
  Airlines woo members with wild, weird and wonderful rewards
 
 
  Untitled Document
_A Monitor Report
New York : Consumers expect more from their frequent flier programmes and airlines seem to be stepping up to the challenge. Miles and points are now used to book hotel accommodations and car rentals online without the need of paper reward certificates. Airlines are adding personality and options to their reward charts with new categories of merchandise, personal services, and travel package rewards.
Every programme delivers the basic reward of free travel when launched. From this simple initial structure springs a growing reward complexity and programme maturity. The savviest airlines develop a well conceived reward strategy that supports the personality of the brand and the objectives of the frequent flier program. Through its review of programs worldwide, Idea-Works offers four examples from the 40 alternative rewards compiled by the report, ranging from the extravagant to everyday comforts :
_ The US$3.5 million yacht offered by Etihad Airways, with a reward price of nearly 386 million miles, is tops on the list in terms of price.
_ At the opposite end of the spectrum is the convenience of using miles to buy an onboard treat. Icelandair allows its members to shop on board using miles, where a mere 650 miles will purchase a "happy marriage cake" or when cash is used, 300 Iceland kroner (which equals about US$3).
_ Virgin Atlantic's "Flying Without Fear Classes," priced at 35,000 points, not only sends a message of caring, but it's good for business too.
_ For 13,574 points on airBaltic, you and a guest can go dog-sledding for about three miles in Latvia.
_ For 8,000 points on Finnair, you can go bowling, play pool or have a sauna evening with friends.
_ On AviancaTaca, banking 8,250 miles will get you a hot lather shave in New York City.
_ American Airlines will reward frequent fliers who fly 14,700 miles with a beer-tasting tour in Brussels.
_ For 30,000 miles on Cathay Pacific, you'll get a package of pampering at the Chuan Spa in Hong Kong's Langham Palace Hotel.
_ SkyMiles' 2009 auction for volunteer work at Delta's Habitat for Humanity homebuilding project in Thailand was pure genius because it removed 401,001 miles from its books while creating outstanding goodwill for the airline.
IdeaWorks also analysed the value per mile associated with 15 mileage-based rewards featured in the report; members on average realise nearly a penny of retail value for every mile redeemed. Values did vary and ranged from a low of US$0.003 per mile for the 45-minute flight on a DC3 offered by Air France KLM to a high of US$0.029 per mile (nearly 3 cents) for Virgin Atlantic's 7-night Necker Island holiday.
   
 
 
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