Air New Zealand's loyalty programme is getting a new name.
By Susan Edmunds of RNZ
The airline said it would be rebranded Koru, although the currency would remain Airpoints dollars and members would continue to earn status points.
In an email to members, Air New Zealand said the programme would be shaped by what members had told it mattered most.
Airpoints has gone through some changes in recent years.
Last year, Kiwibank and Air New Zealand announced they were cutting ties and Kiwibank would no longer offer an Airpoints credit card.
Kiwibank pointed to increasing regulation of interchange fees, which are the fees paid by the bank that processes a transaction to the card issuer.
Air New Zealand chief commercial officer Scott Wilkinson said the changes reflected what customers had been asking for.
"We've listened closely to our members. They told us they want a simpler programme with clear, relevant benefits, and Koru is our response."
Customers will carry across their existing Airpoints and status points, with their equivalent Koru tier mapped into the new Koru programme.
Customers who currently hold Airpoints Gold status will transition to Koru Gold.
A new level, Koru Black, recognised the airline's most frequent travellers in what it said was a more personal way.
"Members at this level will be able to share benefits with friends or family through Koru Circle, alongside additional upgrades and rewards – acknowledging that frequent travel is often supported by those around them."
'There's always a loss of equity'
Massey University marketing expert Bodo Lang was not convinced by the rebrand.
"As soon as you introduce a new brand and you're replacing an old brand, there's always a loss of equity.
"You're losing whatever attachment, whether it's positive or negative, you have with the old brand. So Airpoints is a known quantity and Koru is not."
He said people might also assume that Koru meant the Koru lounge, which for many travellers was synonymous with people who travelled frequently or spent a lot on their membership.
He said rewards programmes were unlikely to be the only reason that people chose an airline but would be one of the factors.
"They will always weigh in there that 'oh, well, I've got these points. And if I fly with Air New Zealand, even if they're just a little bit more expensive, at least I'm accumulating points'.
"Because most people, including myself, won't know exactly what the financial value of the reward is that you're gaining ... I suspect it's very small ... I think the rewards points are way larger than the actual financial reward in people's minds.
"It's basically a switching barrier from switching from Air New Zealand to another carrier."
SHARE ME