Elite status is becoming a new ancillary revenue opportunity for airlines, says Loyalty Status Co.’s ceo Mark Ross-Smith, who believes status might be travel’s greatest untapped ancillary revenue opportunity.
Ross-Smith told the Travel Trends podcast that airlines are beginning to rethink one of the least commercialised elements of their loyalty programs, status. He says this offers something points cannot easily deliver: emotional engagement. Rather than identifying themselves by the number of points they have earned, travellers are far more likely to associate themselves with their elite tier and the experience that comes with it, from priority boarding and lounge access to fast-track security and personalised service.
The shift can already be seen in carriers introducing products designed to help travellers earn, retain or enhance their status, such as status accelerators, paid tier-retention offers and personalised elite benefits. Ross-Smith cites Flying Blue as one example, having introduced Choice Benefits between its Platinum and Ultimate tiers, allowing members to select personalised rewards such as gifting elite status or choosing bonus miles. “Airlines are commercialising status in new ways they would never have dreamed of.”
. . . AI’s Impact
The rise of artificial intelligence is bolstering the trend, says the company, adding that it has the potential to further increase the commercial value of elite status. As AI-powered search and booking tools make fare comparison increasingly effortless, airlines may find it harder to compete on price alone. Elite travellers, however, tend to choose airlines based on recognition, convenience and premium experiences as much as on fare.
