Shine on

To say that the frequent traveller market is big business is a massive understatement. Carriers including the likes of Cathay Pacific, Tiger Airways, China Eastern Airlines, JetStar Asia Pacific and pretty much every other major group are honing in on the frequent travellers market like never before.

Priority check-ins, redemption points, preferred and priority seating, making sure your passengers gets their favourite magazine, as well as free pick up and shuttle services are just some of the lengths companies will go to in order to keep their customers coming back.

As well, some of the regions biggest media brands, tourism operators and advertisers are working harder than ever to tap into this lucrative market, locking in cross-promotions with hotel chains, major banking institutions and restaurant groups.

Whether it's high-powered business executives, leisure travellers, annual family vacationers or just travel bargain hunters, advertisers are directing a lot of effort and marketing spend into direct, online, email and business-to-business marketing channels.

To highlight just how much money the frequent travelers sector generates, the Aeroplan Program, a loyalty club created by Air Canada, listed on the American Stock Exchange in 2005 with a market value of US$2 billion.

Today Aeroplan hold huge amounts of marketing might, with more than 60 commercial partners representing over 100 brands which Aeroplan members can accumulate Aeroplan Miles.

Cathay Pacific, arguably one of the biggest players in Asia's frequent traveller market, manages its loyalty business through a separate company, Cathay Pacific Loyalty Limited, which employs a dedicated team of more than 450 people to constantly monitor and upgrade its customer database of around 3.2 million members.

But as the frequent traveller demographic grows and as airlines tickets get cheaper, marketers need to consider new strategies to retain customers and treat them as individuals, rather than a mass audience.

Understanding the value which drives marketing associations and alliances are of growing importance at a time when the internet is emerging as serious competitor to loyalty clubs.

"You have to decide if you want one high value customer or five general customers," Dominic Purvis, general manager of Cathay Pacific Loyalty Programs in Hong Kong, says.

"A lot of the time it's not about finding new customers, but about keeping the ones you already have. When marketing to this audience, the challenge is relevance and resonance."

Since the launch of the world's first frequent flyer club, American Airlines AAdvantage program in 1981, frequent flyer programs have evolved to include a host of non-travel related industries such health and beauty, online payments, finance and insurance, redemptions through retails department stores and hotel and restaurant groups.

But the main driver in the frequent traveller market will continue to be the bread and butter of priority check ins, preferred and pre-reserved seating, says Purvis.

"the frequent business traveller market is very important to us, in fact the travel, tourism and hospitality sector is the largest category of advertisers on national geographic Channel Asia."

"A lot of effort goes into our loyalty programs, overall it works as a profitable enterprise at the highest level. It's a highly competitive part of the Cathay Pacific business It's not just about being competitive, but adding value where you can. If you get it right, you'll hardy notice your customers, but if you get it wrong it can have huge ramifications."

In today's environment of gigantic airline alliances and frequent flyer program partners, it is easy to be lost on the big-name and international carriers. But a growing fleet of second-tier carriers are competing heavily in the frequent traveller market, not through frequent flyer programs, but on offering a cheaper services to both the leisure and, increasingly, business travellers.

Low cost carrier Tiger Airways does not offer a rewards programs but instead aims to ensure all travellers are catered to through its low-cost offering.

However, the group does offer a range of add-on products such as luggage upsize, sports equipment check-in and seat selector, and holds various partnerships with budget hotel and car rental groups.

Purvis argues that low-cost carriers are changing the market, but says being part of loyalty clubs does prevail.

"Some people are reshaping the category, largely on price, everyday prices are changing, but it's hard to become good at making money on the margins," he says.

Rosalynn Tay, Tiger Airways chief marketing officer, says the airline does not want to segregate its passengers by launching a frequent flyer program, and admits it is constantly looking at ways to improve and build its frequent traveller market.

"With Tiger Airway's consistently low fares, passengers are now able to afford to travel more frequently and to more destinations and travellers who previously were unable to afford to travel by air are now able to," Tay says.

Frequent media options Like air carriers, media companies are focusing a lot of attention on how frequent travellers make media decisions.

For many media companies, the frequent traveller market represents a huge advertising and reader category.

National Geographic Channel Asia says the travel, tourism and hospitality sectors are the largest advertisers category within the group.

Avinash Himatsinghani, vice president of advertising sales & partnerships for National Geographic Channels and Fox International Channels Asia, says it is an important strategy to extend the NGC brand and attract new customers.

"The frequent business traveller market is very important to us. As a channel showcasing stories about the world to everyone around the globe, we enjoy long standing partnerships with leading airlines, tourism boards and hotel brands from across the region," Himatsinghani says.

NGC has also tailored a number of campaigns for the frequent flyer market for clients including Cathay Pacific and the Hong Kong tourism board.

Its offerings also includes NGC branded entertainment areas in airport lounges.

"So whether it is the special National Geographic Channel HD Showcase located at Changi Airport in Singapore that entertains them with high-definition quality documentary programs, breathtaking visuals and compelling storytelling or it's the nearly half a million hotel rooms that National Geographic Channel is available in Asia Pacific, including some of the leading hotel chains in region - we are always on the look out for opportunities to reach out and entertain business travellers."

Dow Jones places a lot of focus on the frequent traveller market and distributes around 80,000 copies of its business title The Wall Street Journal to airport terminals and is also exclusively distributed to VIP lounges at Changi International Airport and has a distribution deal with specially arranged cars and airport buses that provided for transfers and shuttle services between various venues and hotels.

Lesley Kelly, managing director of sales for Dow Jones Consumer Media Group, says the frequent traveller market is a very important segment for the company, both in terms of readers and advertisers.

"[It is] very important naturally, given the unique profile of our readers who are highly affluent, in senior executive positions and consequently frequent travellers for business and leisure.

"It's worth remembering that the long-haul inbound travel market is a valuable segment as well, and business travel advertisers are keen to reach Wall Street Journal readers based outside the Asia Pacific region in Europe, the Middle East and Africa and the Americas."

Kelly says a recent Travel study from The Wall Street Journal Asia illustrated how important the frequent traveller market was to the company.

Some 83% of Wall Street readers are members of frequent flyer programs.

But there is no doubt that when signing into the frequent travellers market, relationships and brand association are powerful tools.

Take for example Asia Miles, which lends its considerable weight and its customer database to hundreds major brands from the telecommunication sector, hotel stores, retail brands, banking groups and travel and leisure companies.

MasterCard, which offers a number of benefits to its frequent traveller market recently announced a partnership with the Venetian Macao Resort Hotel that targets MasterCard frequent travellers, with a focus on affluent Chinese market.

While in-flight services are important, frequent flyer programs have evolved The promotion sees MasterCard, which offer merchant discounts, sales redemption and room package for MasterCard holders in a bid to encourages users to visit Macao.

"This joint campaign increases awareness of Macao as an attractive destination for consumers across Asia, particularly the wellheeled in China," Willie Fung, general manager Greater China for MasterCard Worldwide, says.

He says a MasterCard Worldwide Index of China's affluent that rated Macao as among the top three favored destinations for leisure travel and added the joint promotion will provide "even more compelling reasons for Chinese travelers to visit Macao."

"The Venetian Macao Resort Hotel shares our goal of bringing ‘Priceless Experiences' to consumers, as this joint promotion offers consumers world-class entertainment and exceptional retail experiences."

Dominic Purvis reiterates that customers databases and are power marketing tools.

"Loyalty is not a fixed thing, you need to work on it. Every interaction either builds or destroys a relationship.

"There are a lot of opportunities for marketers using these channels and partnerships. We have huge amounts of purchasing power and can add something to your business which you can not do alone," he says.