Archive for the ‘incentives’ Category:
Airports Compete With Everyone and No One
When I was a kid, S&H Green stamps were all the rage. Our kitchen drawer would barely close with the stamps and booklets and catalogs all centered around the stamping craze. Stamps would be awarded at each stage of the value chain from the gas stations to the grocery store to the department store – every stop along the incentive route rewarded the traveler with stamps. The business model was interesting, merchants bought the stamps from S&H and then gave them away at a rate commensurate with the amount of money they spent at the store. The customer used them to buy prizes and discounts. S&H competed with everyone and no one.
The modern day version leaves little to the imagination – airports are a business. They need to attract aircraft operators to fly scheduled routes. Therefore, they need to also attract travelers to purchase those routes. Some travelers have choices such as driving, taking a train, or using an alternate airport. So airports need to beat two competitors – operators and passengers – with very few tangible arrows in their quill.
via Airports court fliers with rewards programs – USATODAY.com.
“Airports recognize that there is competition not only among airlines but also between airports,” says Debby McElroy, executive vice president of policy and external affairs for Airports Council International-North America. “Loyalty programs can help an airport stand out among its competitors.” The programs are typically free and offer fliers airline miles, prizes or discounts for parking, shopping, dining, or simply flying to and from the airport.
What if the airport could purchase travel stamps from a collective fund and distribute them in the community where people could earn them for using certain services? The stamps could then be redeemed at the flight destination, or to waive airline fees, over time parking, penalty fees, or to make changes to an itinerary….basically, the stamps would buy away all of the little hassles, inconveniences, and volatility of the airline / travel experience.
Like it or not, the real competition for the airport is not the train the car, or a neighboring airport – it is the pain and harassment of flying. It is very easy for people to make the decision to “not travel” – that is the true competition. If airports can make the experience pleasant and inviting, the traveler will come back over and over again.
Social Flights adopts the concept of superior customer service and seamless integration with ground support and hospitality services. Our partners like us for bringing them happy and relaxed passengers. We love our partners for the care and attention they give to our passengers. Our operators prefer us because we are filling their planes and serving their best interest. Passengers love us for a superior value in on-demand private jet and scheduled public jet charter. In essence, there is an economy among our teams – we trade an invisible coupon that allows everyone to do what they are best at so that we can all get where we want to go.