In recent years, Australia’s aviation market has seen increasing competition, with Rex emerging as a noteworthy alternative to industry stalwarts like Qantas and Virgin Australia. Rex’s formal launch of its new Frequent Flyer Program, aptly named ‘Rex Flyer,’ is a strategic move that demonstrates the airline’s commitment to not just providing a transportation service but also building a customer-centric ecosystem.
Rex offering generous rewards for new sign-ups
At its core, a Frequent Flyer program serves as a value proposition to incentivize brand loyalty. The immediate sign-on bonus of 5,000 Rex points is an aggressive maneuver aimed at attracting immediate attention and participation. Coupled with a double rewards offer for bookings made by January 2, 2024, Rex is sending a clear message: it is not merely entering the loyalty program market but doing so with competitive offers that may well divert frequent travelers from their existing loyalties to Qantas and Virgin. The ability to earn up to seven points per dollar spent on flights and up to five points on additional services like baggage and seat selection further amplifies this value proposition.
The construction of new airport lounges in key cities such as Adelaide, Sydney, Melbourne, and Brisbane indicates an ancillary strategy aimed at enhancing the entire travel experience. A good lounge can be a significant factor in a frequent traveler’s choice of airline, providing a more comfortable pre-flight experience and serving as a tangible symbol of the airline’s service quality.
Given the recent competitive history, including Virgin Velocity CEO Nick Rohrlach’s high-profile “defection” from Qantas Frequent Flyer in 2021, it’s evident that Australian airline loyalty programs are in a high-stakes battle to win over consumers. Rex’s entry into this competitive arena is timely. It capitalizes on the growing momentum of the airline, which expanded its operations with the launch of 737 services in March 2021.
Rex sees the long-term value in miles and perks
While Rex previously had a smaller corporate travel scheme, the comprehensiveness of the new Rex Flyer offering indicates an intention to compete on equal footing with Qantas and Virgin. This is indicative of the airline’s confidence and ambition, as creating a robust loyalty program requires significant investment in technology, customer service, and partnerships.
Given the increasing competitiveness of loyalty programs in Australia, the success of Rex Flyer will depend on various factors, including ease of point redemption, the quality of partnerships for point accumulation, and, most importantly, how well Rex can maintain service standards as it scales up. It will also be intriguing to see how Qantas and Virgin respond, whether through enhanced perks, easier point redemptions, or more competitive pricing.
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