Rewards Program

Most Airlines have a rewards program, and SocialAir will certainly have one as well.  But the Social Air Rewards Program is unique.  In fact, it is actually the secret formula that will allow Social Air to dominate the charter jet industry.

Quite simply, for every 100 miles a SocialAir Member flies, they earn one point times their personal Bonus Factor.  Members’ can increase their Bonus Factor in three ways:

    1. By purchasing travel packages – Bonus levels increase based on the size of the package purchased.
    1. By promoting Social Air – When Members refer new members, their Bonus Factor increases based on the value of their referral’s purchase.
  1. By being flexible – Members can increase their Bonus Factor through the Social Trip Booking application by agreeing to fly at a different time or from a different airport than their original request in order to accommodate other members.

Bonus Points Breakdown

Here is a chart of the specific point schedule for Bonus Points.

Member Action Bonus Factor Increase
Purchase 5,000 mile plan 5
Purchase 10,000 mile plan 10
Purchase 25,000 mile plan 15
Purchase 50,000 mile plan 25
Purchase 100,000 mile plan 50
Referral Purchases 5,000 mile plan 1
Referral Purchases 10,000 mile plan 2
Referral Purchases 25,000 mile plan 5
Referral Purchases 50,000 mile plan 10
Referral Purchases 100,000 mile plan 25
Change Arrival Time more than 12 hours 1
Change Arrival Time more than 24 hours 2
Change Arrival Time more than 2 days 3
Change Airport to one more than 25 miles away 1
Change Airport to one more than 50 miles away 2
Change Airport to one more than 50 miles away 3
Change Airport to one more than 100 miles away 4
Change Airport to one more than 200 miles away 5

For Example

Let’s say Member A signs up for the 10,000 mile package (10 points), refers a friend who signs up for a 25,000 point package (5 points) and agrees to fly a day after the planned to in order to accommodate another member (2 points).  They will have a Bonus Factor of 10+5+2=17, and thus will earn 17 miles for every 100 miles they fly.  Thus, the miles aren’t actually costing them $2 per mile, but rather $2 per 1.17 miles, or $1.71 per mile.

Theoretically, a member could actually achieve a lifetime of basically free flight through this method.  A member who had a Bonus Factor of exactly 100 would earn one mile for every mile they flew, and thus would have a rotating reserve of miles that never ran out.

Bonus Points as Promotional Tool

These point levels are subject to change upon further discussion, and indeed will be variable going forward.  Bonus Factor awards will be adjusted for promotional purposes the way grocery stores run sales to stimulate shoppers to buy.  In order to stimulate people to recruit members, we could run a temporary promotion where any Members referred during a certain period of time will result in double Bonus Factor points.

Bonus Points as Behavioral Modification Tool

If more flexibility among Members is needed, we can increase those Bonus Factors to encourage members to be more flexible in their travel plans.  Greater flexibility means higher probabilities of getting profitable flights booked, so the additional ‘cost’ in Rewards will be offset by more flights.

Another behavior we can reward is Generosity, specifically in terms of gifting miles to other people. It can be assumed that whenever someone gifts miles to someone else, either inside or outside the membership, that they are less likely to use those hours any time soon, but that the person they are gifting them to probably has a greater need for them and will probably travel sooner. So the more this type of generous transfer of miles occurs the faster miles will be used up. Therefore, rewards efficiently awarded for this behavior will have a positive effect on the bottom line.

Bonus Points as a Cost Control Mechanism

The Bonus Points point system provides us with a set of levers we can pull to control income and expenses.  If we choose to get very generous with the Rewards program the cost becomes more competitive, Members are happier, more flexible, and more likely to refer their friends. But those points erode future purchases as members earn more miles to fly with, so they are a very real cost, and indeed, are the biggest cost factor.  Fortunately, this cost structure is completely under our control, and we can run ongoing tests to determine the Bonus Factor structure that will optimize Sales, costs, and Member satisfaction.