Last Updated on: November 15, 2023 at 7:12 am
Business travellers often seek out airline loyalty programs that provide perks, upgrades, and free flights.
However, not all frequent flyer programs offer equal value. Therefore, companies wishing to improve their corporate travel management activities should carefully evaluate airline partnerships to maximize rewards and employee satisfaction.
A belajar published in INFORMS journal Marketing Science found that members of frequent-flyer programs that achieve elite status are more likely to choose an airline, even one that’s more expensive than its competitors.
In this post, we will walk through everything your company needs to consider before joining a frequent flyer program.
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Frequent flyer programs reward you with points or miles based on how often you fly and how sizeable your business travel spend is. Through miles accrual, you rack up more points and you can redeem them for all kinds of freebies, such as flights, cabin upgrades, airport lounge access, hotel reservations, and car rentals.
Airlines use these programs to build loyalty and keep customers coming back. For companies with a considerable travelling workforce, the savings can be massive. Every business trip your team takes for business helps earn points towards future company travel. Plus, your employees get to enjoy VIP treatment and other sweet perks.
Every major airline has its own program. While all aim to reward loyalty, you will find huge differences in the benefits, rules, and policies offered by each one.
So, how do you narrow down the best fit for your company? We will walk you through the key factors to consider.
First, analyze your company’s business and executive travel patterns. Where do your employees fly regularly? Domestic or international routes? Do they fly to certain cities or destinations every month?
Knowing which airlines your team frequents most will help identify programs with the best coverage and earning potential.
A program focused on US domestic routes won’t be as useful for a global company, for example. Make sure the program aligns well with the routes you actually fly.
Frequent flyer programs range from free to join to having annual membership fees. Most are free for basic membership but may charge fees for elite status levels.
Check if there are fees to join for each employee or costs that apply when redeeming rewards. Some add fuel surcharges to award tickets or fees for booking with travel miles. Such hidden costs can quickly add up, reducing the value of the rewards.
Also, consider who will pay any membership fees – individual employees or the company centrally. This may factor into the program selected.
Now, it’s time for some number crunching. Compare the following.
Doing this math will reveal which programs offer the most earning potential and valuable rewards for your usual travel.
Look at airline partnerships that expand where you can earn and use miles. Partners like hotels, rental cars, and lounges are really useful, too.
Broad partnerships give employees way more redemption options and flexibility. That could trump programs limited to just one airline.
Elite tiers offer sweet perks – upgrades, lounge access, and priority service.
Review qualification requirements to see if your travellers can reach elite status. The more elites you have, the bigger the benefits.
Understand the rewards offered at each tier to choose a program with perks that matter most to your company.
Nothing is more frustrating than losing hard-earned points before you can use them.
Check expiration policies carefully. Some programs expire points based on account inactivity. Others after a set timeline regardless of activity. A few offer points that never expire.
Pick one that works with your redemption goals and cadence.
Many loyalty programs offer corporate benefits, discounts and services tailored specifically for business clients.
Common corporate benefits include:
If your company participates at an enterprise level, corporate benefits can enhance the value derived and ease administration.
Depending on your internal policies, you may need to track frequent flyer activity at the individual employee or central company level.
Assess aspects like:
Seamless account management and visibility will be key for monitoring your program participation.
Review your current travel booking, expense and other policies. Make sure the program doesn’t conflict but rather supports these policies.
Spend time upfront making sure program participation supports, not undermines, existing travel policies. Employees need clear guidance. For example:
Following stated policies means maximizing both program benefits and compliance.
In an ideal world, frequent flyer programs would offer total flexibility – earn and redeem at any airline anytime. But the reality is that many limit flexibility to varying degrees.
When evaluating program flexibility, look at:
The fewer restrictions here, the better for your business travellers. Flexibility means employees can select flights and rewards based on optimal timing, cost and convenience – not forced by program limitations.
Flexibility also adapts as business needs change. New routes, partners and cabins won’t be problematic.
Here’s the reality – frequent flyer programs can be complex beasts. Between elite tiers, capacity controls, expiration rules and countless partners, there are loads of nuances. Questions and issues inevitably come up.
That’s why a program’s customer service reputation should be a key consideration. Look for:
Good service means fewer headaches for your company when hiccups occur, or clarification is needed on rules. Prioritize programs known for helpful, competent service teams. It will save tons of grief.
Membership in an airline loyalty program means sharing employee information like names, birthdates, passport details, company roles, travel history and more.
So, it’s crucial to assess how securely the program safeguards this sensitive corporate data. Look for:
Make sure you’re comfortable with how they will safeguard sensitive data.
Look for programs with a long, stable history and growing member base. Avoid ones with lawsuits or financial instability.
You want assurance that the program will continue delivering value in the long term.
Depending on the jurisdiction your company operates in, legal or tax considerations may apply:
Consult with your legal and tax advisors to identify relevant laws and accounting impacts. This will avoid any compliance violations or unnecessary tax burdens.
Finally, gather direct input from your frequent travelling employees. They can share:
Incorporating your employees’ perspectives ensures greater engagement, adoption, and satisfaction once a program is implemented.
TruTrip understands the essentials of frequent flyer programs and is dedicated to assisting travel managers and making travel rewarding for your business. Our platform centralizes and simplifies the management of these programs, ensuring that your company gets the most out of every flight taken.
Our customer support is top-notch, and we prioritize data privacy and security. Plus, we actively adapt to the changing needs of businesses, helping you navigate new routes, partners, and cabins with ease. To learn more about our services and how we can cater to your specific needs, memesan demo dengan kami atau mendaftar untuk uji coba gratis.
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