Clipping of news on Brazilian Culture, Law and Citizenship
21/05/2013
This article was translated by an automatic translation system, and was therefore not reviewed by people.
Multiplus and Smiles adopted new strategies with the increase in demand caused by the rise of class C, which has more complex markets exchange points for tickets
A few years ago, the airlines tried loyalty by consumers pocket. With reward programs based on mileage accrual, the more the customer flew, the more points he would have to exchange for free tickets. The mechanics was known to the users of credit cards, but a class C ascending discovered the charms of this apparent magic "joined, changed" with the airlines. Earlier, Tam and Varig had no problems with their passengers who crowded aircraft. However, the success of loyalty transformed benefit. With limited number of seats per flight to suit users of these programs, complaints challenged the ability of companies to meet their most loyal customers. The new reality has meant that companies seek new alternatives.
Programs score of two major Brazilian airlines, Multiplus, which belongs to the TAM, and Smiles, which is currently linked to Goal (which bought Varig), have started to diversify how customers can earn and redeem points for through new partnerships. Currently, you can purchase points in the supply of the car and magazine subscriptions, in addition to traditional travel and credit card purchases.
That's because Multiplus Smiles and no longer simple programs linked to their brands and creative companies have become independent of the air. In April this year, Smiles went public on the Stock Exchange of São Paulo in an initial public offering (IPO, its acronym in English) who captured 1,132 billion dollars. Goal While struggling to get out of the injury, the first steps of Smiles as an independent company since show good results. The shares appreciated 10.6% since the IPO and the company this week released a profit of 29.8 million reais in the first quarter of the year. In the same week, Gol announced a net loss of 75.29 million dollars in the first three months of 2013.
The idea of leaving the Gol Smiles have solo flight was adopted three years ago by its main competitor in the domestic market, TAM, which made the Multiplus IPO in 2010. Since the IPO, shares of Multiplus appreciated by 146.8%, according to a survey by consultancy Economatica. The president of Smiles, Leonel Andrade, the loyalty market in Brazil is still very early and is very focused on credit cards and airlines. He says the country only 5% of the population participates in loyalty programs as a whole, but in places like Chile, this proportion is 50%. "Brazil has a low retail culture for fidelity. Few programs We have strong relationship." However, Andrade believes that the country has the potential to reach 15% to 20% over the next 4 to 5 years, explaining that participation in these programs relationship has to do with the maturity of the markets.
The strategy to transform loyalty programs into independent companies of this forced airlines to attract new business partners in various retail segments such as fuel distributors, bookstores, publishing houses, hotels and car rental. The idea is to empower consumer choice by exchanging it wants. Besides, of course, to pay the bill. These agreements come to pay companies - that are saved to seven keys for them. In addition to a payment for part of the network (which varies according to the importance and weight of the partner), every month there is a balance to be paid or received, depending on how many points were generated and how many were used. Multiplus, for example, has a portfolio presentation with 11.3 million participants and 383 partners. Sales in the first quarter of this year was nearly 3.4 billion reais.
With the model multifidelização consumers accumulate points in various ways and can redeem them for a multitude of products and even services such as cinemas and toll payment. According to Eduardo Gouveia, president of Multiplus, 66% of participants Multiplus accumulate points for various types of purchases. "We are a network of partners who accumulate points in one place. So you can accumulate points faster and with greater relevance," he explains. However, the airline still the most desirable. According to Gouveia, although airlines to lead redemptions - about 92% to 95% of Multiplus made by clients are converted to airline TAM - products such as fuel, electronics and other hotels are preferred by customers.
As it is difficult to use - Even with the offer of new products, the conversion remains complicated for airline tickets. The site has several Complain Here customer records saying that the conversion of points that were not credited on airlines. The technical advisor of Procon-SP Cassis Marta makes some alerts to the participants in these programs do not have a headache. She points out that, first of all, you need to read well the conditions of participation and, especially, to avoid frustrations exchanges - which are unfortunately becoming increasingly common. "Most complaints are about the delays to convert points and changes that companies make in their programs," says Marta. "The problem is that most of them have complex rules."
With a larger number of beneficiaries, companies have changed in recent times items of its policy of accumulation of points and, more importantly, validity. Earlier, it was important to accumulate unhurried. Now who forgets the points in the portfolio may have an unpleasant surprise. And the phenomenon is not restricted to Multiplus or Smiles. Itaú Unibanco decided to make some changes in their programs. On one side, expedited, the points are converted immediately and not take over a period of ten days, as was done previously. On the other hand, the new rules change the way scoring: instead of converting each point acquired in a mile, the client now needs 1.25 point card to convert it to a point in the programs of the airlines. The Bank of Brazil, the rules have also changed. Since last year, the client must have a minimum of 10,000 points to request a bailout for programs of the airlines. Meanwhile, Santander has required a minimum amount of transfer to the first rescue, but the others are freely made.
Source: See - Online
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This article was translated by an automatic translation system, and was therefore not reviewed by people.