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Collinson Latitude comment on easyJet/Nectar

Aviation - 17th March 2011

easyJet’s decision to join fellow household-name companies – like Sainsbury’s, BP, Homebase and British Gas – on Nectar, the UK’s biggest loyalty programme, is understandably attracting media attention, says Janet Titterton, director of Collinson Latitude, a leading global provider of multi-channel products to help companies maximise their ancillary and incremental revenues.

“Airlines today operate in a very competitive and demanding market,” says Janet. “There is financial pressure from the global recession through to the prospect of soaring, unpredictable fuel costs. In the face of these intense economic challenges, easyJet is joining forces with Nectar from March 22, seeking to strengthen the airline’s offering compared to other carriers. Nectar members will be able to use their points to pay for easyJet flights, including taxes and charges. The move makes strategic sense. Extending easyJet’s reach, by accessing the Nectar customer base, will attract new passengers to the airline and incentivise past passengers to fly with easyJet again. It will be very interesting to see whether easyJet’s partnership with Nectar represents an increasing focus on the importance of customer loyalty for the carrier. Will easyJet be pursuing innovative moves toward building more profitable, long-term customer relationships?”