South African airline offers loyalty credit card

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By: Wise Marketer Staff |

Posted on September 15, 2006

South African airline offers loyalty credit card

The South African budget airline Kulula has recently launched a frequent flyer programme called 'Kulula Moolah', based on a Visa credit card. Apart from a sliding scale of points being awarded for card usage each month, extra points are awarded for Kulula flight bookings, and rewards are redeemable as cash toward Kulula flights.

According to Gidon Novick, joint CEO for Kulula, members who spend approximately R5,000 (approx. US$670) on their Kulula credit card each month will be able to earn a free return flight between Johannesburg and Cape Town within six months.

Earning points Points are earned based on monthly spend, on a sliding scale:·  Up to R5,000 = 3%;·  R5,001 - R10,000 = 2%;·  R10,000 - R20,000 = 1%.

However, an extra 3% is awarded for Kulula flights paid for using the card.

Burning points Any amount of Kulula Moolah can be put toward a flight booking, and the loyalty currency itself is easy enough for consumers to understand: the points match the Rand currency (1 point is worth R1.00), and can be used toward any available flight on the airline.

The credit card also provides some other consumer benefits. For the first six months after acquiring the card, the interest rate is fixed at 5%. The airline is also promoting its 'shop responsibly' initiative. Novick explained: "We encourage our customers to shop responsibly, and have a section on our web site dedicated to educating and assisting them in managing their debt and minimising the potential negative effects of borrowing too much."

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