Who owns qantas frequent flyer

It's very circular. Consumers today have more choice in almost every aspect of their lives than they did even a decade ago, and loyalty is hard to come by. But Qantas has been able to tap into the psychology of goal setting, aspiration and status to build a loyalty program with nearly 13 million members, many who don't travel frequently. It now makes up nearly a fifth of the airline's earnings before interest and tax. Holland says it's extremely hard to get consumers to pay attention in and that is a conversation she has with nearly all of her clients.

The best way to get people thinking about your FF program is to get them using it. That is to say the best way to get people thinking about your FF program is to get them using it. So, more members being more active is immensely valuable for Qantas. Again, hence these changes," she says.

Dr Adrian Camilleri, a consumer psychologist and senior lecturer in marketing at UTS, says loyalty programs capitalise on a theory known as the goal gradient to drive engagement. Qantas Loyalty makes large chunks of its money by selling points to partners such as banks or retailers, so they can attract and reward their own customers — who are also Frequent Flyer members.

The cost to Qantas for redeeming a point is lower than the price the partner pays for it, yielding a profit to Qantas. Loyalty is big business for Qantas and returns more on capital than any other part of the company. It is still the smallest earner in Qantas' portfolio but its growth prospects and margins are crucial. In the first half, Qantas domestic earned a margin of 14 per cent on sales, Qantas International just 2. Importantly, the business benefits from pricing power and cost control that is often absent from airlines.

Telstra launched its own loyalty program in May and the telco, another iconic Australian brand, will likely hope to, in part, emulate Qantas' success. Telstra head of consumer and small business Michael Ackland says the new program gives the company permission to talk to customers more often and give them more reasons to check-in: ie, engagement.

Qantas sells its frequent flyer points for between 1. Take a look at the range of businesses HERE. She uses several strategies to increase her acquisition of points, whether it be downloading an app or applying for a new AMEX Qantas frequent flyer credit card with a bonus sign on.

You download the app and you start building points or get free things. Actress Dawn French was used to relaunch Flybys at Coles because when this scheme started they didn't have the value right. I think one of the biggest challenges if you have one more than one or two loyalty programs is you often forget to scan your card or you forget that there's an offer. With credit cards, look for double your points deals. Also watch for transfer points deals.

Qantas also has a shopping registration which, working on a Chrome browser, tells you the which retailers give Qantas points. Some loyalty schemes have established separate digital marketing agencies and use their extensive data insights to implement hyper-targeted campaigns.

Qantas in launched Red Planet which uses data from the Qantas frequent flyers to deliver advertising campaigns. This personalised approach creates more meaningful, relevant and rewarding experiences — resulting in happier, more loyal and more engaged customers. We think loyalty schemes are a waste of time. But that day never comes and you realise you just wasted all your weekends attending swap meets. Aldi came up with calculator to value points. The calculator. Frequent flyers earned more than billion points and redeemed 4.

Qantas, known as the Flying Kangaroo, carries around 51 million passengers a year. Divorced from selling tickets and carrying passengers, Qantas's loyalty business generates steady income that smooths out the cyclical nature of aviation. At Qantas's investor day last week, loyalty was the only business for which Qantas gave earnings forecasts.

It's the airline's only unit to report consecutive earnings growth since The unit's most recently disclosed first-half profit margin of 24 per cent makes it more than three times as profitable as the international aviation business and almost twice as lucrative as the domestic division.

As an added bonus for Qantas, its loyalty memberships lapse after 18 months of no activity and the miles expire. Qantas frequent flyer program turning into airline's biggest money spinner. Please try again later. The Sydney Morning Herald. By Angus Whitley Updated May 12, — 7. Save Log in , register or subscribe to save articles for later. Normal text size Larger text size Very large text size.