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The airline industry is one of the most competitive marketplaces in the world. Profit margins can be razor thin and airline firms will do nearly anything to grow their market share and maintain customer loyalty, such as crazy non-profitable publicity stunts to offering incredibly cheap flights.

Nowhere is fiercer than the very lucrative low-cost carrier Asia to Europe routes, that just recently became dominated by LCC (Low-cost carrier) airlines, making up 50% of all flights between the two continents. A low-cost carrier’s main point of difference from a normal full-service airline is low prices, with the saving made by having no extras (Passengers are expected to buy luggage, food and everything else in-between).

But now there are so many low-cost airlines fighting among each other (And the envious full-service airlines looking to claw back market share), in what appears to be a race to the bottom, how do they keep customers coming back? What actually drives customer loyalty between each of these low-cost carriers when the price is all the same?

Low-cost carrier loyalty programs

All of the low-cost carriers start their loyalty programs with frequent flyer rewards. This is a simple way to earn repeat business, in a ‘Buy nine flights and get one free’ model. This is not news and many passengers now expect this with every airline they fly. As many of these airlines are joined or owned by full-service airlines, points can be transferred between different firms, (For example Qantas to Jetstar), making them more useful.

Some airlines boost this loyalty grab by giving passengers free luggage, meals and other perks that they would normally have to pay for on other flights. These, of course, can come together in a premium cabin environment, which may be far cheaper than a comparative full-service airline business class.

We also see low-cost airlines at the forefront of new destinations and routes, flying from odd locations to provide unique destinations for passengers. The more zany and odd the route, the more potentially lucrative it can be, as customers will be drawn to spending their money on unknown destinations.

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Other airlines, such as Norwegian are upping the ante by providing free Wi-Fi and connectivity, a service normally only for free for first class passengers. These types of benefits can cost very little for the airline, but greatly boost satisfaction and desire when customers are choosing who to fly with.

Passengers are ultimately looking for a low-cost service, that has perks that make them as comfortable as possible. Ironically, as we saw airlines introducing bare minimum no-frills flights years ago (such as Ryanair who even charges its crews to drink water), now they are starting to bring back original services long ago culled to pull in loyal customers (Like Delta bringing back food service for all passengers on their pacific flights).

Who has the best loyalty program?

The most popular loyalty program in Europe to Asia regions is, in fact, Norwegian Air, which won for best program in the 2018 Freddie awards, a special awards event that gives out awards to the airline that has the best perks, loyalty programs and best deal for customers.

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“The carrier’s Norwegian Reward program provides a free reward, such as complimentary seat reservations or fast track through security, every six flights.” – Freddie Awards

What do you like about your favourite low-cost carrier?