Rethinking LCC loyalty programmes

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Traditionally LCCs have based their value proposition on carrying customers cheaply from one point to another without offering peripheral services. They largely avoid loyalty programme because everyone will come if your price is low, right?

But things are changing now.

The increase in competition, coupled with the growing focus on business travellers, is leading LCCs to test new models, including frequent flyer programme.

Cebu Pacific is one of the Asian LCCs that recently launched loyalty programmes. Members of GetGo, Cebu Pacific’s lifestyle rewards program, can earn points when flying with Cebu Pacific and then use the points to earn free flights.

That seems pretty much like what FSCs offer in their FFPs. But, LCCs are operating on a different model, whereby the value of a reward may be underappreciated as a result of the LCC’s pricing strategy. Customers might not value the reward as LCCs normally offer low fares as well as occasional sales that could lead to zero fares in some market. So how does loyalty work for LCCs? Also, does customer loyalty even exist anymore?

Nik Laming, Cebu Pacific Air

If you are LCCs looking at launching or improving your loyalty programme, of if you are an FSC wanting to know how the LCC model is changing and affecting your business, or if you are an air travel company looking for partnerships; come and hear from the General Manager of Cebu Pacific’s Loyalty Division, Nik Laming. Nik will give a presentation on LCC loyalty programme at Aviation Festival Asia 2017.

So why hear from Nik?

First, Nik has been an active consultant, practitioner and a regular speaker on CRM and loyalty programmes for fifteen years. Before joining Cebu Pacific, he worked for a loyalty service company, consulting companies in the energy, airline, CPG, retail and payment card industries. So do expect to hear his insights from in- and outside the airline industry.

Second, Cebu Pacific is now a member of Value Alliance—an alliance of eight Pan Pacific LCCs including Cebu Pacific, Jeju Air, Nok Air, NokScoot, Scoot, Tigerair Singapore, Tigerair Australia and Vanilla Air. We haven’t heard yet about the alliance’s plan to have a joint loyalty programme. But think about it. As the alliance is bringing together the airline members’ networks throughout Southeast Asia, North Asia and Australia; the value of such joint loyalty programme would be enormous. So, come and ask Nik.

Below is a preview of Nik’s presentation:

Rethinking loyalty for LCCs

  • Justifying loyalty investments: Are LCCs made for loyalty? What are the distinct advantages of being a LCC when it comes to introducing and managing a loyalty programme?
  • Loyalty programmes for disloyal customers
  • What are the added business values that loyalty programme brings to LCCs and can you get a profit out of it?

This will be an inspiring talk. Don’t miss it.

Check out our website here or contact me on phu.nguyen@terrapinn.com to see how you can get involved.


About Aviation Festival Asia
Now entering its 13th year, Aviation Festival Asia is one of the largest and most well-established commercial aviation shows for airline and airport executives from both the Asia Pacific region and across the world. In 2017, we are expecting to welcome over 2,000 attendees to the event, with over 900 airline executives across 7 premium conference tracks covering full service and low cost airline strategy & business models, passenger experience, marketing, IT systems, retail, human capital and more. Book your ticket now

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