What your company should know before choosing a frequent flyer program

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.

What are frequent flyer programs?

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.

Things to know before selecting a Frequent Flyer Program

1. Travel Patterns

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.

2. Membership Costs

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.

3. Earning and Redemption Rates

Now, it’s time for some number crunching. Compare the following.

• How does the program allow you to earn points? How many points do you get per flight and by fare class or elite status, etc?
• How does the program allow you to redeem rewards? How many points are there for a free flight? Are there any other options like hotel nights or upgrades?
• What’s the typical value per point based on common redemptions?

Doing this math will reveal which programs offer the most earning potential and valuable rewards for your usual travel.

4. Partnerships and Alliances

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.

5. Elite Status Qualification

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.

6. Points Expiration Policies

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.

7. Corporate Benefits

Many loyalty programs offer corporate benefits, discounts and services tailored specifically for business clients.

Common corporate benefits include:

• Discounted award tickets and fees
• Customized points reporting and account management
• Consolidated rewards tracking across all employees
• Dedicated account managers
• Streamlined booking and expense integration

If your company participates at an enterprise level, corporate benefits can enhance the value derived and ease administration.

8. Account Management

Depending on your internal policies, you may need to track frequent flyer activity at the individual employee or central company level.

Assess aspects like:

• Can accounts be linked to employee profiles in a central database?
• What online and mobile tools are available to manage multiple accounts?
• How easy is it to pool, transfer or combine points between accounts?
• Can you digitally submit and manage expense reports?
• What reporting features track points activity and redemptions?

Seamless account management and visibility will be key for monitoring your program participation.

9. Travel Policies

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:

• Book only with approved partners and tools to earn points
• Redeem awards for business purposes only with the manager’s approval
• Combine points only as per policy guidelines
• Submit expenses for awards as per policy

Following stated policies means maximizing both program benefits and compliance.

10. Flexibility

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:

• Airline network – Are points just tied to one airline, or can they be earned across a diverse partner network?
• Alliance access – Can points be accrued across multiple airline alliances?
• Redemption options – How frequently are new reward options like hotels and rental cars added?
• Capacity controls – Are there blackout dates where rewards aren’t available?
• Rules on cabins – Can you redeem for any flight or are some cabins restricted?
• Account policies – How easily can points be pooled, shared or transferred between accounts?
• Award policies – Are fuel surcharges and fees attached to award bookings?

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.

11. Customer Service Reputation

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:

• Responsiveness – Are service agents readily available via phone, email, chat, and social media? What are average wait times?
• Knowledge – Do agents demonstrate a strong command of program policies and rules? Can they answer complex questions?
• Issue resolution – How effectively do they solve problems like missing points, reversals, etc? Is the first contact resolution rate high?
• Self-service – Are robust FAQs and account management tools available for convenience?
• Community reviews – Do online forums and review sites give positive ratings for support experiences?

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.

12. Security and Data Privacy

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:

• Encryption – Do they use strong encryption protocols like AES-256 bit or SSL/TLS for stored and transmitted data?
• Access controls – Are employee records protected by role-based access?
• Breach history – Have there been any reported breaches exposing customer data in the past?
• Audits – Are systems and data security procedures regularly audited by reputable third parties?
• Privacy policy – Do they have a clear, transparent policy on data usage? Can users access, correct or delete records?
• Compliance – Do they adhere to relevant security standards like ISO 27001, IEC 62443 atau SOC 2?
• Right to audit – Can you request third-party audits of their security program if desired?

Make sure you’re comfortable with how they will safeguard sensitive data.

13. Track Record and Reputation

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.

14. Legal and Tax Implications

Depending on the jurisdiction your company operates in, legal or tax considerations may apply:

• Are there any regulations governing corporate participation in airline loyalty programs?
• What are the tax implications for employees earning business travel points?
• Are point redemptions treated as taxable employee income?

Consult with your legal and tax advisors to identify relevant laws and accounting impacts. This will avoid any compliance violations or unnecessary tax burdens.

15. Employee Feedback

Finally, gather direct input from your frequent travelling employees. They can share:

• Airlines and routes they typically fly for business.
• Loyalty programs they already participate in privately.
• Features and benefits they find most valuable.
• Pain points in existing programs.
• Their preference if given a choice.

Incorporating your employees’ perspectives ensures greater engagement, adoption, and satisfaction once a program is implemented.

Get the best option by booking your Frequent Flyer Program on TruTrip

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, tempah demo dengan kami atau daftar untuk percubaan percuma.