Issues & Trends – August 2010

Visa card turns LH, SR reward points into cash

LUFTHANSA and SWISS have introduced a new twist to agent incentive programs in Australia by issuing consultants with personal Visa debit cards linked to the carriers’ eXpertsplus rewards scheme.
Agents who are eXpertsplus members can qualify for a Visa debit card that will automatically convert points earned from sales of SWISS and Lufthansa seats into cash that can be spent at Visa outlets around the world (except Woolworths in Australia).

The airlines released details of their new approach to reward redemption earlier this month. The scheme has its origins in Lufthansa’s 2005 launch of eXperts as a travel agency only “one stop shop” website providing information including availability scanner and waitlist assistance.

This was followed early last year by the launch of eXpertsplus, an incentive program awarding points to consult-ants for bookings on the carriers’ network, calculated on flown segments and booking class.
Now, say Lufthansa and SWISS, they have added a new dimension to the program.

They describe the linking of eXpertsplus to consultants’ personal Visa debit cards as “a unique redemp-tion scheme for points earned”.

According to a statement issued by the two airlines: “eXperts members are automatically eligible to upgrade to eXpertsplus and will now have the opportunity to receive a personalised Visa debit card which converts points earned for bookings made on eligible Lufthansa and SWISS flights into cash ready for redemption at thousands of outlets in Australia and overseas.

“From August 2010 all card holders can expect to receive monetary credit for their points. Members can check their balance and track purchases online at www.universalgiftcard.com.au.”

The statement says eXpertsplus members who currently have more than 5000 points in their account will automatically be issued with an eXpertsplus Visa card. The card can be activated online.

Lufthansa general manager Australia, Kai Peters, claimed “this unique redemption scheme” will make redeeming points “an easy, flexible and more streamlined process for travel agents”.

He said: “Every month the Australian dollar value of the points accumulated will be automatically transferred on to the eXpertsplus Visa card, allowing agents to shop at Visa-accepting outlets worldwide.”

The airlines’ statement pledged that agents’ bookings will be tracked by their reservation system and points will be allocated approximately eight weeks after flight segments are flown.

Austrian Airlines is expected to join eXpertsplus early in 2011.