Australia: Qantas grows loyalty programme revenue

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By: RickFerguson |

Posted on March 1, 2016

Australian airline Qantas revealed in its latest mid-year financial results that its investment in loyalty�both its core frequent-flyer programme as well as its efforts to spin off its loyalty capabilities as a full-service provider�is paying dividends. The news speaks to the durability of the customer loyalty industry�far from being devalued in the age of programmatic advertising buys and customer experience plays, loyalty is taking its place as the centrepiece of organisational growth efforts.

Qantas� turnaround is coming along nicely, with the airline revealing that before-tax profits nearly doubled in the half-year, from AU$554 million this time last year to AU$921 million. The airline�s frequent-flyer programme has played a central role in profitability, with the number of members rising 6% to 11.2 million and programme revenue rising 105 to deliver a record AU$176 million in EBITDA.

The company�s digital agency Red Planet, launched in 2014 to deliver digital creative and media buying services for both the airline and other clients by leveraging frequent-flyer programme data, also factored into the airline�s earnings�the company singled out Red Planet as part of the 18% growth in revenue of its �loyalty adjacent� services.

Good on ya Qantas. The airline�s success bodes well for the future of customer-centric marketing. Count us excited to see what happens next.

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