SURVEY: Lounge access and upgrades perceived as top benefits in APAC

Airline Loyalty Survey – but travellers unsure how to spend points

Trivandrum / July 13, 2023

Thiruvananthapuram, July 13: A survey conducted among air travellers in the Asia-Pacific (APAC) region revealed that airlines loyalty programmes (ALPs) have huge potential to attract more passengers, but a vast majority of them find it difficult to redeem the points that facilitate lounge access, seats upgrades and fast-track check-ins.

The online APAC Airline Loyalty Survey was conducted among 1,500 air passengers (both leisure and business travellers) in Hong Kong, Singapore and the United Arab Emirates (UAE), who travelled by air in the last 18 months.

Lounge access and seats upgrades are perceived as top benefits but travellers are not sure how to spend the points accrued through their air travels, points out the survey, conducted by IBS Software, a global leader of SaaS solutions to the travel industry.

Among the other benefits of the loyalty programmes are immediate rewards and free tickets to events.

Of the respondents, 63 per cent are members of at least two airlines loyalty programmes, on an average. Exclusive access to lounges (32 per cent) and cabin class upgrades (31 per cent) are seen as the top benefits for this group. For leisure travellers, class upgrades and points not expiring are the most appealing benefits, while a fast track check-in, immediate rewards and free tickets to events appeal more to business travellers.

“Despite the widespread adoption of Airline Loyalty Programmes (ALPs), passengers feel unable to make the most of them with over half (58 per cent) unsure where they can redeem points and 56 per cent unaware of the value of their points; this figure jumps to 64 per cent in Singapore and the UAE,” reveals the survey.

Of the 37 per cent of respondents who either have never been a member of a loyalty programme or whose membership has lapsed, the main reason cited is lack of awareness of the benefits (30 per cent).

Another reason for avoiding loyalty programmes is the perception among the travellers that it is ‘too hard’ to build up points. Such a perception was among 23 per cent of the respondents, and this figure jumped to 33 per cent of non-members in Singapore.

Despite the apathy amongst non-members, the survey points out, there is an opportunity for airlines to tempt them to sign up. A sizeable 58 per cent of the respondents, who are not yet part of a loyalty programme, showed their willingness to try one in the future and this increased to 67 per cent in the 26-35 year old age bracket and 64 per cent in the UAE region.

However, residents in Hong Kong appeared to be the most reluctant to try loyalty programmes with just 46 per cent considering it in the future. Easy check-ins (46 per cent) and cabin class upgrades (44 per cent) are highlighted as the two top reasons a non-member would be willing to sign up.

Marcus Puffer, Vice-President & Head of Loyalty Solutions at IBS Software, said, “It’s incumbent on airlines to ensure their programme members are aware of the benefits of their loyalty schemes, or they risk losing their interest in being part of the club. VIP lounges and class upgrades are fantastic perks but if a member doesn’t feel confident in how to build up their bank of points or, worse, know how to use them, the selection of benefits becomes irrelevant.”

For detailed survey refer to the blog:  While airline loyalty benefits appeal, 58% don’t know how to redeem points.