It's a Privilege: Jet's frequent flyer programme carries on as spinoff

As JetPrivilege outlives Jet, it challenges prevalent notions about brand loyalty while opening the door to a new engagement with old customers

Last week the company managing Jet Airway’s lucrative frequent flyer programme, JetPrivilege, splashed its way into the media with a print campaign that said ‘JPMiles. More powerful than ever’. Privilege it implied was more powerful than the product. And as Jet’s customers scramble to cash in on their frequent flier miles, many are reading this as a big shift in customer-airline relationships in the country. 

For one, it is a sign of the extreme commoditisation of the airlines business where loyalty too has become brand agnostic. JP Miles can be used on other airlines, including low-cost airlines such as IndiGo and SpiceJet. And secondly, it marks the use of miles as a tool for customer engagement and not just a reward for loyalty.

When Jet Airways shut operations in April, customers and employees found themselves sucked into the vortex of a crisis, much like what had happened previously to another high flier, Kingfisher Airlines. But this time around, Jet customers can earn and redeem their frequent flier miles on other airlines, which Kingfisher’s customers could not, in 2012.

Jet Privilege Private Limited (JPPL) said that the loyalty benefits remain relevant and rewarding for its nearly ten million members. JPPL has tied up with online travel agency EaseMyTrip to ensure that customers can earn and redeem their miles on other airlines when they book on the platform. 

 According to JPPL, the value proposition of the frequent flyer programme is the cache of benefits it offers. This was meant to hook fliers and make them come for more, thereby benefiting Jet. A classic customer-brand loyalty equation. But how does one define loyalty in the absence of the airline? 

Loyalty is independent of the brand in the airlines business, say some experts who say that this is a way to keep Jet relevant through the crisis. But more importantly, for fickle fliers using price as the chief determinant for their purchase, the miles are now being treated independent of the airline they accrue to. 

JetPrivilege was spun off into a separate company with investment from Etihad Airways in 2014. It is a separate entity even though the loyalty programme is closely linked with Jet and bears its name. JPPL therefore needs to strike an independent engagement promise with customers. “When the crisis first broke out, they reached out to all the members individually to reassure them that the benefits of the miles accrued will rest with the members,” says frequent flyer S Yesudas.

“Our partnership with Etihad Airways stays intact. We continue to stay invested in our members and partners and are dedicated towards creating more value, opportunity and options. Our immediate focus is to consolidate growth in the travel space including flights ad hotel stays by offering members a choice of flights and accommodation and making every interaction with us a rewarding experience,” JPPL said in an emailed response.

Loyalty is also lucrative business. Jet was the largest customer for JPMiles and it is obvious JPPL would be impacted adversely by the airline's grounding, experts said. “JetPrivilege has built credibility that the organisation is committed to its members. Creating a value proposition for its members will depend on how well JPPL negotiates agreements with new airline partners,” said Brian Almeida, founder partner, Strategic Caravan, a loyalty programmes consultancy.  

"While it has tied up with one of the online travel agencies it would need a large anchor partner, which could include an airline or a hospitality chain. This would make the programme more attractive for members and improve revenue opportunities for the platform," said loyalty programmes expert Saurabh Agrawal and thereby further sharpen the promise.

Not everyone is pleased with the new arrangement though. Some customers have protested, posting their problems on social media where they have accused JPPL of overstating the promise and under-delivering on the redemption benefits. In the coming months, JPPL can expect more such complaints from irate and harassed customers. And if it is to truly leverage the goodwill that its promise has generated, these are the complaints it should focus its attention on.