Frequent Flyer Points Redemption Most Preferred by Australian online users

August 29th, 2001

Sydney, Australia:  40% of Australians still prefer to redeem their frequent flyer points for flights as opposed to other products and services, according to a new online travel study conducted by Sydney based research firm, APT Strategies, in which 4,000 consumers were interviewed online in during July and August, 2001

In a study titled 'Online Travel: Maximising Frequent Flyer Loyalty', Australian Internet users detailed the following answers about what they prefer to redeem their frequent flyer points for: 

Redemption of Frequent Flyer Points
(Source: APT Strategies August, 2001)

(n=4,500)

Flights

40%

Gift Voucher

15%

Event Concert tickets

8%

Hotels/Dining out 

6%

Outdoor Activities

5%

Mobile Phone/ PDA

4%

Internet Access

3%

Financial Services  (ie. Insurance/home loans)

1%

Speaking at the Annual TravelTech Conference in Sydney, Marc Phillips, Managing Director of APT Strategies told the crowd of 350 attendees "the balance of power in online travel has returned to the travel giants and the airlines are gaining rapid response to their Internet only airfare prices, despite their efforts to cross promote other redemption products such as wine, flowers and financial services".

According to the report, Australian Internet users are frustrated with booking travel online beyond a 'point to point'  destinations. Complexity  of travel combinations deter  many pure online travel transactions and there is an increasing requirement for travellers to request the human factor when using the Internet for online travel bookings.

APT Strategies recommend that online travel websites focus on the customer experience and conversion of "lookers to bookers" , use email to acquire customers and only give priority to offering frequent flyer points, gift vouchers and events for concerts in exchange for their frequent flyer points.

 


About APT Strategies Pty. Ltd.
APT Strategies is one of Australia’s first online research firms established in 1994. APT Strategies provides clients with next generation online intelligence accelerator services whereby analysts engage in consultation, deliver best practice research reports and create business opportunities for clients within our network of over 10,000 businesses throughout the world. APT Strategies delivers innovative yet practical business analysis and planning to focus clients on profiting from current and future technology business models.

Contact:
Marc Phillips, CEO, APT Strategies Pty Ltd., Sydney
Email:marc.phillips@aptstrategies.com.au
Telephone: +61 2 9332 1480
Internet: http://www.aptstrategies.com.au