Tata Group-owned Air India and Vistara are looking at ways to retain and reward frequent flyers by increasing flights, adding loyalty programme partners, and making it simpler to earn upgrade tickets. This comes amid increased competition and growth in air traffic. Air India, which is in midst of a transformation, is yet to fully fix its defective seats and malfunctioning in-flight entertainment system.

Vistara, on the hand, faces criticism from customers who are unable to redeem miles for a free ticket or upgrades. But these problems aside, the Flying Returns and Club Vistara loyalty programmes of both the airlines continue to grow in strength. The two, however, are not linked to each other yet.

Air India, which had 2.64 million loyalty programme members prior to its privatisation, said it sees strong growth in frequent flyer membership. “There is a high level of interest across countries, including among Indian diaspora to enroll in the programme,” said an airline spokesperson. 

“ Air India offers earn and burn opportunities on 25 Star Alliance member airlines. We are in process of creating global eco system of partners that will include lifestyle, hotel and travel brands,” he added.

Vistara, on its part, is looking to make upgrade process seamless at airports and is increasing flights. “We used to operate 200 flights daily earlier, now we operate 250 and will increase it to 300,” said Vistara’s CEO Vinod Kannan on Monday. More flights would mean more redemption opportunities but frequent flyers however are not convinced. 

“Vistara has vastly increased the pool of loyalty programme members by signing up new customers and via co-brand credit cards, who are all eligible for complimentary seats on the airline (subject to availability). However, with limited seats opened for redemption, the airline has been unable to satisfy the requirements for redemptions, disappointing many customers,” said Ajay Awtaney, editor, LiveFromALounge.com, an Indian aviation and loyalty-focussed website.

Awtaney added that sufficient effort is not being made by Vistara to engage with the customers leaving them with a bad experience.  “We have atleast one or two seats (for redemption) in business class per flight. We have a few more seats in premium economy cabin and they are all taken up. I can’t offer my entire business class cabin for redemption because then I will not be able to make money,” said Kannan.

Business class occupancy has increased from 40-50 per cent to 60-70 per cent on most routes. According to Kannan most of complaints about redemption come during April-June and October-December season and this is because customers want a seat on a prime morning flights between Delhi-Mumbai or vice versa. “ I can’t give everyone (redemption) seats on those flights,” said Kannan. There are enough seats available if people want to travel at a different time or during weaker months of the year, he added.

“Our internal data shows that seats offered for redemption almost doubled over the last year. The Club Vistara loyalty programme was also recognised for redemption ability with the Freddie award (an international award that recognises loyalty programme),” said Deepak Rajawat, Vistara’s chief commercial officer.

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