easyJet customer retention and loyalty reach record levels

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The airline trials frequent flyer loyalty scheme to reward most regular passengers

easyJet, the UK’s largest airline, has today reported that it has increased the proportion of bookings made by existing customers to 57%, up from 50% in 2010. This means that over 37m passengers are rebooking each year compared to 25m four years ago – a 50% increase. The figure for returning business customers is even higher at 62%.

Loyalty supports both revenue growth and cost control because it is much more cost effective to retain existing customers than to find new customers.

To drive this trend still further the airline has launched a trial of a frequent flyer loyalty scheme to reward most regular passengers. The trial, which has been running for the past three months and involves more than 15,000 passengers in the UK, France and Switzerland, has been well received by the trial group with 91% telling us it is appealing to them.

Benefits to participants of the trial scheme include increased flexibility on bookings, a price guarantee and a dedicated phone number.

Carolyn McCall, Chief Executive Officer of easyJet, commented:

More customers are trying us, liking us and coming back to us.

“This is testament to our winning formula of low prices and warm, friendly service, as well as our unrivalled network.   Popular new initiatives like allocated seating meant many people tried us for the first time and we are absolutely focused on driving loyalty so they choose us flight after flight.
 
“In setting up our trial we listened to our passengers to understand what they most value and tailored the scheme to reflect this.  Unlike traditional airlines difficult to use mileage schemes our loyalty scheme gives passengers benefits they really value and is simpler to run.”

The increase in loyalty over the last few years has been driven by a number of initiatives.

easyJet has the popular easyJet Plus scheme which offers customers unlimited allocated seat choice, dedicated Bag Drop and Speedy Boarding, as well as upcoming enhancements like the addition of Fast Track security at major airports in early 2015.  All of this enables our customers to travel stress-free through the airport and on-board.

Across Europe, easyJet Plus membership has risen by 14% in the last 12 months to an all-time high, with retention rates having increased by over 30% in the same period, as customer recognition of the value of membership has grown strongly, particularly in Spain and Portugal.

easyJet also participates in three leading loyalty schemes – Nectar, RBS Your Points and Emirates Skywards – which enables members of these schemes to acquire easyJet flights when they redeem points.

18 Nov 2014