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The future role of AI in frequent flyer programmes

1 Aug 2024

The future of Frequent Flyer programs (FFP) is poised for a transformative shift, driven by the integration of artificial intelligence (AI). As airlines seek to enhance customer loyalty and optimise their operations around customer touch points, AI is a pivotal technology capable of reshaping FFPs to deliver unprecedented levels of personalization, efficiency and engagement.

Source: 4045 via Freepik

One of the most significant roles AI will play in your FFP in the future is in the dominion of personalisation, AI can analyze vast amounts of data from passengers’ travel histories, preferences and behaviours to offer highly customized experiences. The advantage this holds for airlines, moving towards Offers and Orders as a commercial model, is endless considering customised offers combined with predictive marketing in time.

Frequent flyers can receive tailored recommendations for flights, hotel bookings, car rentals and other offers across his or her full travel experience that align closely with their individual preferences. Personalised communication such as targeted emails, WhatsApp and notifications about relevant deals, will become the norm rather than creating a competitive edge.

Enhanced customer service

AI will also revolutionise customer service within FFPs. Chatbots and virtual assistants, powered by natural language processing and machine learning, will be able to resolve a wide range of customer inquiries and complaints. These AI-driven tools will provide immediate, accurate and consistent responses, enhancing the overall customer experience at all your customer touch points.

Moreover, AI will play a crucial role in optimising the management of rewards and points. Predictive analytics can help airlines forecast demand and adjust the availability of reward seats accordingly, ensuring the balance between customer satisfaction and maximising revenue. Dynamic pricing models, supported by AI, can offer real-time adjustments to reward seat availability and pricing based on factors such as demand, seasonality and passenger trends.

Fraud prevention and inventory management

AI will optimise and automate your FFP processes such as identifying and preventing fraud by detecting unusual patterns and behaviours that may indicate misuse of the program. AI can assist in managing inventory and logistics for reward-based products and services, ensuring that customers receive their benefits promptly and accurately.

AI can enable your FFP to assist the airline in its migration to an offer-and-order commercial model or to optimize such a model in operation. It has the potential to optimise the overall travel experience for frequent flyers and ensure a seamless journey if implemented as part of a well-designed frequent flyer strategy within a proper software ecosystem such as LoyaltyPlus.

As AI technology evolves, the future of frequent flyer programmes will become more sophisticated and customer-centric, allowing airlines to foster deeper loyalty, thereby enhancing the value of their FFP.