The document provides tips for airlines on bridging loyalty programs with ancillary revenue strategies: 1) Ensure any ancillary revenue tactics align with the airline's brand identity as either a low-cost or premium carrier. 2) Consider whether new services are adding costs to existing free items or offering genuine new features before charging fees. 3) Be transparent about any new fees or products and ensure marketing messaging is clear and understandable.

1. Your Brand & Ancillary Revenue Quick Tips from the FFP-ARAC 2009 Conference

2. Intro Here are some quick things i learned at the FFP-ARAC this year for bridging your Loyalty Program and Ancillary Revenue Strategies Brand Alignment Cost vs. Feature Be Transparent Don’t Inundate Use all channels Reward Miles Don’t be indecisive Bundle Deliver on your promise

3. Brand Alignment When reviewing an ancillary revenue tactic, ensure that it doesn’t conflict with your brand identity. Do you see yourself as low cost or top-tier carrier or somewhere in the middle? Depending on where you fall, limits what services you can charge for (add a cost) or offer (create a feature). Failure to pay attention to the relationship between your brand and your ancillary revenue strategy can result in consumer backlash.

4. Cost vs. Feature Is the ancillary revenue tactic charging for something that was previously free (charging for 2nd bag check-in) or offering a new service to consumers (Accelerator). New products can generate tremendous revenue and create a positive consumer experience. Before charging fees for existing services, ensure you have leveraged any new features.

5. Be transparent People should not feel cheated nor confused with your new products or fees. Work with marketing to ensure the messaging is positive, upfront and easily understandable.

6. Don’t inundate Don’t inundate a consumer with a multitude of non-targeted offers in a single page. If you present too many “out of context” offerings the consumer will just bypass it all. Prioritize the offerings you want to sell based on user segmentation. Stick to 3-5 offerings at a time.

7. Use all channels to drive revenue Use in-flight channels and kiosks to drive ancillary revenue. Review your offerings and evaluate which ones can be sold in-flight to offer a “consistent” approach. A few airlines are now offering the ability to upgrade your to Business class while on the plane. What a great feature, for the individual who sees a empty seat in business class and impulse buys the upgrade.

8. Reward Miles. Ensure that any purchase of ancillary revenue products will earn the member miles. Communicate this earning opportunity at every chance.

9. Don't be indecisive. Don't change your strategy every 10 seconds. It causes confusion and loses trust with your consumers. If you need to change your strategy, be clear and concise in your messaging.

10. Bundle your offerings into packages. Allow people to by a la carte, but also in bundles. Bundle features into themes that align with your segments Car manufacturers have bundling down to a science. Learn from them.

11. Deliver on your promise If you are going to charge for something that was previously free to the consumer, absolutely make sure you can deliver on it. For example: If one pays for a 2nd checked bag, it had better be there when they arrive.