Client
Our client is an airline based in the Middle East. Initially founded to serve domestic routes, our client underwent rapid growth and is now a major international carrier, connecting cities around the world. They also operate regional air taxis, charter flights, and domestic and international passenger services.
Challenge
To meet the future needs of evolving loyalty technologies, our client wanted to transform their Frequent Flyer Program (FFP) from a “distance-based” mile accrual to a “spend-based” miles accrual program. The new digital loyalty program would allow passengers to earn miles for every eligible purchase rather than the distance flown. The valid purchases included the client’s flights’ online add-ons (ancillaries) such as airport lounges, prepaid baggage, seat selection, etc. Therefore, the more a passenger spends, the more miles they earn.
The client also wanted to move to a new third-party Loyalty Management System (LMS)―this required replacing the website and mobile app integration from the current service provider to the new third-party platform. They were looking for a partner who would complete the integration within 4 months to align with the legacy FPP service provider’s contract end date and use the latest integration methods to keep them future-ready.
Solution
Hexaware worked with the client and a third-party team to deliver a comprehensive loyalty program integration. Hexaware was involved in the design, development of integration with the third party, and end-to-end functional testing of the website. Hexaware also provided the following solutions:
Seamless integration with third-party LMS: The primary scope of this partnership was to change the website and mobile integration from the current service provider to the third-party platform and ensure all the intended features of the new airline loyalty program work seamlessly. Existing SOAP-based Web Services were replaced with the REST-based Web APIs. Our client is the first airline to integrate with this third-party LMS using REST-based API.
Unified web and mobile applications: Hexaware offered to transform the technical architecture that enabled the consolidation of two separate applications of web and mobile into a single application for loyalty management. This was to reduce the application maintenance effort. The client was also advised to go for its independent testing services for end-to-end testing of their loyalty revamp program.
Addition of new features: Several new value-added features such as family account management, , buy/gift/transfer miles, more options (such as ancillaries) to spend miles, and push notifications for all transactions, offers and miles expiry for improved customer experience were implemented.
Benefits
The implementation of Hexaware’s solution delivered a host of benefits to the client, including:
Reduction in application maintenance costs: The technical architecture transformation helped reduce the application maintenance cost by up to 50% by consolidating mobile & web clients into a single code base.
Rapid implementation of LMS: Hexaware helped the client achieve its larger business goals by completing the integration with the third party and new features implementation in a very short period of 4 months.
Increase in customer engagement: The client provided more options to redeem points other than ticket booking such as online duty-free shopping, hotel booking, etc. This resulted in a significant reduction in miles expiry as more options to redeem are available, which benefits the customer. The family account feature helped increase the loyalty customer count. This resulted in increased customer engagement.
Increase in revenue through ancillary products: Features like miles extension and buy/transfer/gift miles helped to improve the revenues. The customers experienced improved post-booking ancillary services such as lounge access, additional bags, seat selection, etc.
Summary
Hexaware partnered with the client to modernize its airline loyalty program, shifting from distance-based to spend-based accrual in a new Loyalty Management System in a swift 4-month transformation. The addition of features like miles extension and buy/transfer/gift miles increased revenues, reduced maintenance costs by up to 50%, increased the influx of new memberships, increased loyalty point activity, augmented ancillary product revenues, and improved customer satisfaction.
