12th September 2024
Travel status can significantly influence a traveller’s decision-making process. As Phil Gunter noted in an Ai Events’ webinar, status plays a crucial role in three key areas:
- Journey enhancement: Status provides tangible benefits like priority boarding, lounge access, and baggage benefits, streamlining the travel experience.
- Emotional connection: There’s a sense of pride and belonging associated with having status, fostering a deeper emotional connection with the airline or hotel brand.
- Confidence and peace of mind: Status instils confidence in travellers, knowing they’ll be well-cared for, especially during disruptions.
Status can be a powerful tool for airlines and hotels. Mark Ross-Smith highlighted the value of status, suggesting that it’s difficult to quantify its worth. “When X, with a certain travel status, flies, he or she would go the airport (or at any point of interaction with the brand), the first thing that they tend to say is : I am a gold member,” he said. While frequent flyer programs (FFPs) are valuable, status often holds even greater significance. Airlines can look at their core revenue and also loyalty revenue to ascertain the contribution of status initiatives.
To maximize the value of status initiatives, airlines should:
- Monitor elite member behaviour: Track the spending habits and preferences of high-status members.
- Leverage status match campaigns: Attract high-value travellers by offering instant recognition through status match campaigns.
- Explore cross-category partnerships: Partner with other businesses to offer exclusive deals and benefits to status members, driving additional spending.
- Understand customer segments: Tailor marketing and engagement strategies to different segments of status members.
By Ritesh Gupta, Ai Events
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