RE:Aeroplan Is Dead, Long Live Aeroplan (Part 2)Aimia needs to structure the New Aeroplan program so that there are clear benefits over the new Air Canada loyalty program.
Also, the New Aeroplan program needs to have broad, mainstream, global market appeal.
For example:
- Aeroplan would need to offer travel rewards from multiple carriers (not just Air Canada and its partners)
- Aeroplan cost of travel/rewards would be advantageous relative to regular competitive market prices
- Travel flight rewards need to be readily available to members for redemption. (Previous criticisms of Aeroplan by its members was that it was too difficult to actually redeem points for flight rewards…or that the number of points required for flight rewards were ridiculous. This issue needs to be addressed in the New Aeroplan program).
- Etc.
Yes, Aimia/Aeroplan has the ability to negotiate huge bulk flight/travel reward deals with all its participating airline partners.
Furthermore, Aimia/Aeroplan could be a sort of clearing house for many airlines to sell their excess inventory on flights within their schedules. This concept is similar to the Costco and Walmart supplier arrangements. Many suppliers provide inventory to Costco and Walmart at substantially reduced prices (very low margins) in order to maintain sufficient operating levels of their resources (equipment, employees etc.). These suppliers then have other distribution channels with higher margins for their remaining inventory.
Aeroplan can serve as the travel wholesale distributor for many airlines in order to fill seats on flights in order to increase their yield factors.
Aeroplan's membership base and cryptocurrency eco-system will ensure that Aimia/Aeroplan will be a major factor in this market segment.