Drop The Mic with Jason Hunt

Are airline loyalty businesses worth more than the airline itself with Mark Ross-Smith

Mark Ross Smith · February 8, 2023

Entrepreneur · Leadershipin

Interview with Mark Ross Smith

Podcast: Drop The Mic with Jason Hunt

February 8, 2023

In today's episode, we are dissecting whether airline loyalty businesses are worth more than the airline itself. My guest today is Mark Ross-Smith, a tech entrepreneur in the airline industry. Loyalty business is proving increasingly profitable, with the value of some mileage…

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Key topicsDelivering Increased Revenue through Loyalty ProgramsA study by the Hotel Loyalty Report found that hotels with loyalty programs had an average occupancy rate of 75%, while those without programs had an average occupancy rate of 68%. This suggests that loyalty programs can help hotels fill more rooms and generate more revenue. How Artificial Intelligence and Big Data are Disrupting Airline and Hotel Loyalty ProgrammesAI and big data are transforming the way loyalty programs are managed and operated. For example, the use of AI-powered chatbots and virtual assistants is allowing companies to automate routine tasks, such as account management and rewards redemption, freeing up resources for more strategic initiatives. Additionally, the use of big data is allowing companies to track and analyze customer behavior in real-time, allowing them to make more informed decisions about their loyalty programs. (Source: Forbes, "How AI and Big Data are Revolutionizing Loyalty Programs") Disruptive Trends in Loyalty: Innovating to Drive Customer EngagementThe airline loyalty status is held by the most valuable global travelers, who represent 30-40% of airline revenue. Mark Ross-Smith and his company, Loyalty Data Co, have demonstrated their expertise in this area by delivering thousands of high-value travelers to Canada in 2021/2022 through their platform, Status Match.com, in conjunction with Destination Canada and Air Canada. View all topics →

About Mark Ross Smith

Award Winning Loyalty Data Thought Leader

25+ Major travel brands worked with100,000s Travellers helped by Loyalty Status Co2022 Loyalty Royalty 30 Under 40800,000+ members Australian social network co-founded & sold

Mark Ross-Smith is a global leader in the airline loyalty industry, with a passion for delivering value to both travellers and airlines. As the CEO and Co-Founder of Loyalty Data Co, Mark is shaking up the industry with his cutting-edge loyalty platform, StatusMatch.com. With over a decade of experience in the industry, Mark has a proven track record of success, having led the Malaysia Airlines Enrich Loyalty Program to consecutive years of financial growth. He was also the CEO of a leading high-tech start-up, where he harnessed the power of big data to drive incremental revenue for Telstra, Optus, and Vodafone.

Mark is a sought-after speaker and thought leader, known for his unique approach to loyalty innovation. He's been featured in major media outlets such as CNN, BBC, The Economist, and Financial Times, and has published numerous papers and articles on airline loyalty on his website, www.traveldatadaily.com. In 2022, Mark was also awarded Loyalty Magazine's prestigious "Loyalty Royalty" 30 Under 40 Award.

Mark's entrepreneurial journey has been nothing short of impressive. He co-founded and sold the largest Australian-owned social network, which had over 800,000 members and major global brands as customers. He's now focused on airline and loyalty data and has published over 50 thought-leadership articles on airline loyalty and big data monetization.

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About this episode

In today's episode, we are dissecting whether airline loyalty businesses are worth more than the airline itself. My guest today is Mark Ross-Smith, a tech entrepreneur in the airline industry.

Loyalty business is proving increasingly profitable, with the value of some mileage sales surpassing that of the core operations. Recent research findings indicate that loyalty programs bring upwards of 50% of airline income of the airline's total revenue.

On the day's topic, Mark observes that loyalty programs such as mile sales are worth more than effective while the airline itself is worth nothing. At the same time, our guest notes some other examples of loyalty programs being more valuable than the core business. As Mark observes, airlines have successfully leveraged loyalty programs to drive high emotion around a product that people wouldn't otherwise buy.

Indeed, it would only do fair justice to this subject if we addressed social media's role in pushing airlines' loyalty programs. Mark uses examples of success stories such as Singapore and Malaysia airlines to explain the undisputable role of social media marketing today.

While today's topic is outside a lot of things that we talk about relating to marketing, it is highly relevant to any frequent traveler, marketing director, or entrepreneur.

Finally, get to hear about Mark's selection of his brand ambassador. It is a relevant one from a film character. Enjoy this period.

Key Timecodes

(1:25) Mark’s journey to being “Mr. Loyalty”

(2:51) cheap flights can be very expensive (the flights are cheap but everything else costs an arm and a leg)

(5:06) Why he loves Heathrow over Gatwick

(5:35) Singapore airport - a cut above the rest

(6:55) How can an airline increase its loyalty through its lounge service?

(9:30) Are airline loyalty businesses worth more than the airline itself?

(12:20) Other examples of unprofitable core businesses and profitable loyalty programs

(14:35) Success stories of airlines leveraging social media to market their loyalty programs

(17:10) Use of influencer marketing and brand ambassador by airlines

(19:30) Loyalty versus lowest price dilemma for customer