JetBlue has relaunched its frequent flier program, True Blue, touting a new-and-improved structure. It’s an improvement over the old JetBlue program, and existing JetBlue loyalists will find it an improvement over the old program, but it’s not a huge draw in and of itself. Here’s a quick rundown.

There are some features that are quite appealing:
- No blackout dates. That’s always a good thing.
- Last-seat availability. If there’s an open seat, and you have the points, you get the seat. That’s good, old-school ticketing.
- Bonuses linked to loyalty. Nothing revolutionary here, but more flights on JetBlue means more points. Other airlines have elite tiers, JetBlue keeps it simpler and just gives you more points.
- One-way awards.

Expiration of points is still short-lived, but at least it can be extended. The old TrueBlue program’s points would expire after one year, regardless of activity. That made accrual of points — and loyalty — pointless. (No pun intended.) The new program improves that a tiny bit, by adding a restart-the-clock feature. If you fly JetBlue or use a JetBlue American Express Card before your miles expire, you add a year to the their lifespan. It’s a marginal improvement that will give infrequent fliers an incentive to actually join the program, though one year is still a lot less than other airlines’ expiration timeframes.

Interestingly, the program changes the metric for points accrual from flight segments or distance flown to dollars spent. Travelers earn 3 points per dollar spent on the base fare, or 6 points per base fare if the ticket was booked on the JetBlue website. From the airline’s perspective, this makes a ton of sense: You want to reward those passengers who pay big bucks, not the traveler who eked out a $29 fare special.

TrueBlue has always been an enigma. Coming from an airline that has historically tried to be more customer-service oriented than their larger peers, their loyalty program has always been — and still is — a disappointment. There’s not much thinking outside the box here.

They didn’t think big. They could have done much more to add value and to create an incentive for travelers to switch their business to the airline. For example, JetBlue is part-owned by Lufthansa; why not create a mechanism for redeeming points with the German carrier? You’d tap into a global network and open up destinations from Africa to Asia. Instead JetBlue stayed in the all-North-American mold that other carriers like Southwest have already carved out.

It’s a shame. This could have been a much bigger deal.

 JetBlue relaunches its TrueBlue loyalty program, misses a great opportunity

Categorized in: JetBlue, frequent flyer
2 Comments

2 Responses to “JetBlue relaunches its TrueBlue loyalty program, misses a great opportunity”

  1. S A Says:

    True, they could have made this an interesting program, but instead it’s just as irrelevant as their program was the first time they launched it.

    Whatever.

  2. Wandering Aramean Says:

    I think you’re missing the forest for the trees in your analysis. Yes, they are missing the Lufthansa partnership in the initial announcement. And, no, they do not expect to have it live at the end of September when TB2 goes into effect. But it is on the road map and is expected to be there in Q1 ‘10.

    Beyond that, they have gone WAY outside the box in terms of the other nuance that is built in to the program for bonus thresholds. They have bonus miles kicking in at $500 spend increments, allowing the very frequent travelers (or just the high spending ones) to earn something in the range of 14 points/dollar spent, not the 6 that they’d normally get. That’s a 133% bonus for their “elite” passengers, better than most any other program out there. They’ve also got bonuses for transcon travel that can add to the fun. If you take 5 r/t transcon flights you get 10,000 bonus points. Add that on to the other bonus numbers and it actually starts to add up in a hurry.

    And then that combines with what appears to be a pretty solid redemption scheme (no blackouts, sliding scale starting at 5,000 points o/w depending on the cost of the seat being redeemed, etc.) and the program doesn’t really suck at all.

    A lot of its value will depend on these details being fleshed out further, but after talking with the guy who is the architect of the program and one of his analysts who crunched the numbers I have to say that I am cautiously optimistic that it will be successful. It definitely is better than their old program, which is nice to see.

    You can read more of the detailed analysis here: http://www.wanderingaramean.com/2009/07/trueblue2-details-this-time-without-all.html

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