Zurich, Switzerland – Loylogic launches auctions and raffles through its Loyrewards™ service. Loyalty program members now enjoy more fun while redeeming points on aspirational rewards. From the program sponsor’s perspective, such redemption options spell out a partial answer to mounting points liabilities, especially in light of up-coming changes in accounting standards for loyalty schemes.
Loylogic recently launched the new auction and raffle redemption types – both offering industry first features – for the Etihad Guest Reward Shop, the frequent flyer program from Etihad Airways, the National Flagship carrier from the United Arab Emirates, based in Abu Dhabi.
Besides the standard auction process, Loylogic has developed a new - travel industry focused - process called "Multi-Item Bidding". The functionality allows airlines to auction any amount of flight seats on a given destination (e.g., 6 seats London-New York) and members to bid with points on the exact quantity of tickets they desire (e.g., 2 tickets). Loylogic's system automatically calculates the best deal for the airline within all possible bidding combinations. The winning members (e.g., member A with a bid on 1 ticket and member C with a bid on 5 tickets) can then settle their auction bids in a combination of points and cash, depending on their current points balance and payment preferences.
Loylogic's raffle process comes with another industry first feature called "Multi-Ticket Raffle". The functionality calculates exponentially the number of raffle tickets a member gets based on the number of points he/she is ready to redeem.
In addition to the fun-factor for the members, auctions and raffles offer a very cost competitive points burning for the program sponsor and more options to better control liabilities stemming from the ever increasing number of unused miles in frequent flyer program accounts.
“The new interpretation of the International Accounting Standards Board is going to hit loyalty program sponsors’ balance sheets with an increase in points liabilities. This is why we strive for procuring innovative, fun and rewarding redemption options for members worldwide at competitive burning costs for program sponsors” says Dominic Hofer, CEO. And he continues: “As you can see, we rigorously pursue our mission of making our loyalty program clients’ miles and points the most desirable loyalty currency in the market. Considering the tremendous success of Etihad Guest, we definitely deliver on our promise”.
