Unless the programme is improved and provides more value to its customers, it is difficult to see how it will be an improvement for both KrisFlyer members and SIA.Stellar service is just one of a host of reasons that makes Singapore Airlines a world-class travel brand. In terms of customer engagement, SIA might have overextended itself. Less frequent travellers will also have no incentive to have anything to do with SIA after spending their miles on participating merchants. In the long run, more frequent travellers are unlikely to get much value out of the app, while SIA may have to face a potential drop in loyalty amongst KrisFlyer members. In the short term, it might be a good thing, since it provides customers with more options. KrisPay is largely an avenue for the occasional traveller to spend his miles, instead of waiting to redeem for flights or letting it expire. If KrisPay turns out to be successful, and customers zero out their mileage accounts through the app, they will have less incentive to fly SIA over other potentially cheaper airlines.Īfter all, based on the value proposition of KrisPay, it is unlikely that savvy travellers will fly on SIA simply to rack up miles to spend on KrisPay. Their unspent mileage balance is meant to dissuade them from flying competitor airlines and retain their loyalty.īy enticing customers to zero out their accounts through KrisPay, SIA might just have lost sight of a bigger goal. Members with miles in their accounts and something they wish to redeem for will tend to fly SIA again, so as to build up their mile balances for that eventual redemption. Loyalty programs are meant to, well, inspire loyalty. However, there is something that SIA must be wary about. KrisPay might have unintended consequences In this case, since the value for customers was weak to begin with, perhaps there won't be a significant backlash. SIA will do well to bear in mind the consequences of offering a new innovative way to earn or spend rewards, only to gut it afterwards. It is not a surprise that SIA is keen to create their own digital wallet, given that allowing their miles to be used for everyday purchases will increase top of mind awareness of SIA and KrisFlyer amongst consumers, further encouraging them to spend more with the company. Of course, I'm not sure this holds true, given the rather low value that KrisPay miles are worth, compared to other uses for KrisFlyer miles. It was supposed to significantly enhance the digital side of SIA's business, for the benefit of customers. Given the choice between a trip to Bali, or a S$50 credit, weighing these two options side-by-side will show you what value means?īack in February, SIA had already announced that they will be launching the world's first blockchain-based airline loyalty digital wallet, which will help unlock the value of KrisFlyer miles to enable everyday spending at retail partners. This may be economy, but still way better than using the miles to settle S$50 to S$100 worth of phone bills. In fact, since SIA launches a monthly redemption discount on certain routes, via its Spontaneous Escapes promotion, you can spend a very small amount of miles for that well deserved holiday.Ī few months ago, the same round-trip economy flight on Bali only cost 7,500 miles, due to a special promotion. With a ticket costing around S$300 on most days, and a value of only S$100 via KrisPay, it is quite clear that using KrisFlyer miles for actual flying is a much better option for most. One can't even buy a one-way ticket for this amount of money.Īssuming you only have a limited amount of miles, there are still many flight options that are more feasible than redeeming via Krispay.Ī round-trip economy award on SIA to Bali will cost you only 15,000 miles. The value of 50,000 Krispay miles? S$333. The cheapest ticket would normally cost around S$1,300.Ī trip to Cape Town, South Africa, or $333 of petrol. Fair enough.Ī round-trip economy award on SIA to Cape Town, South Africa will cost you 50,000 miles. Say, you aren't interested in luxurious flights, and only want a practical way to get on your next adventure. Yes, for all the naysayers out there, there is indeed Suites Class saver space if you look hard enough. Yes, you can get saver awards for Suites Class as well. ![]() ![]() The value of 160,000 miles, when converted to Krispay, is a measly S$1,067. Your personal hotel room in the sky, or $1067 worth of Challenger products? Image via Singapore Airlines. ![]() A round-trip like this would normally cost around S$8,400. If you are rolling in miles, you can book a round-trip SIA Suites Class award to Sydney for 160,000 miles.
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