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Are rewards programs keeping airlines afloat? They just might be.
Delta Airlines is taking a different marketing approach in its called “Grow Your World With Every Mile” highlighting its .
The program was initially launched as the “Delta Airlines Frequent Flyer Program” in 1981 and was renamed SkyMiles in 1995. The recent ad spot marks Delta’s first major investment in marketing the loyalty program. Why the recent focus on marketing a 42-year-old program?
Unsurprisingly, the COVID-19 pandemic.
How Airlines Are Creating Their Own Banks
Though travel demand and spending decreased due to the pandemic in 2020, Delta was able to generate cash by through the SkyMiles program and payouts from its co-branded credit card partnership with American Express.
Delta isn’t alone in using this approach — United used a similar strategy to during the pandemic, and recent reports have found that some popular rewards programs are .
In late 2020, Delta created its subsidiary which essentially serves as the company’s own “bank” that it can purchase miles from to use as financial leverage.
With this move, the success of the SkyMiles program is now integral to the success of Delta, so investing in the program’s growth is a no-brainer for the company. The more miles it can award loyal customers, the more potential capital the airline can leverage if travel demand dips again.
“Grow Your World With Every Mile” may have been the first piece of content we’ve seen promoting Delta SkyMiles, but it certainly won’t be the last.
Marketing Snippets
The latest marketing news and strategy insights.
Twitter announced it will to Twitter Blue subscribers.
Meta introduced a and is testing the subscription in Australia and New Zealand.
YouTube is testing in its creator studio.
Instagram rolled out a to help creators connect with their audiences.
TikTok is launching a to help users foster creativity and generate revenue on the platform.
Spotify is introducing a .
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