Summary
- Viva Aerobus launched its loyalty program, Doters, last year and now has 3 million members, an impressive figure for the carrier.
- By partnering with bus operators, Viva Aerobus is looking to attract the growing market and ensure continuity of loyalty when passengers start flying.
- Viva Aerobus has partnered with HSBC for co-brand credit cards, offering perks such as lounge access and the ability to pay for a ticket entirely with points, including taxes and surcharges.
Low-cost programs and loyalty programs rarely go together. In a segment where price is king, why would one pay into an expensive miles program and edge fares upward? However, Mexican low-cost carrier Viva Aerobus disagrees and believe its program offers an essential tool for retaining customers and attracting more from other modes of transport. Paula Thomas of the Let's Talk Loyalty podcast spoke to Viva Aerobus Chief of Strategy Pablo Sordo about the program on the verge of its first birthday.
3 million and counting
Last September, Viva Aerobus launched Doters, its new loyalty program. The program has all the traditional elements, from three status tiers to priority handling and points earned on travel, but also some unique features. Since then, the program has grown rapidly and now boasts 3 million members, an impressive figure for a year in service. Given it carried 22 million passengers last year, this means nearly 15% of travelers signed up.
Budget carriers usually avoid loyalty programs since they are expensive, requiring a bank-like setup to award and redeem points and deal with customer requests. However, this also makes them extremely valuable, and these programs are vital assets in tough economic times, as we saw in the US. For Viva Aerobus, a rapidly growing carrier, it is also about customer retention.
In a market where the lowest dollar fare wins, Viva hopes that a loyalty program will do that, ensuring that passengers stay with the airline. However, the Mexican market is still growing, and with several airlines struggling, Viva is looking to the next million passengers it can put on planes for the first time. Enter the buses.
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Tying into the bus network
Doters has three bus partners in ETN Turistar, Costa Line, and Autovías and La Línea. Sordo estimates that the bus market is about 200 times larger than the aviation one, meaning the future is there. As the middle class expands, it will undoubtedly look to flying, and Viva wants to attract them immediately.
You can earn and spend Doter points on these three operators and get benefits such as discounts on cargo and early boarding. This helps build an association with the brand quickly and ensures continuity of loyalty when flying in the future.
This isn't a surprise, given bus giant IAMSA wholly owns Viva. This allowed for a smoother entry to the partner and will continue to benefit the carrier.
Credit cards ready
Viva's first financial partner is HSBC, with which it now has two co-brand credit cards. In addition to nice sign-up bonuses, Sordo noted the need for an everyday connection to the Viva brand. These credit cards have some impressive perks, such as lounge access on the Mastercard network and accelerated earnings. Notably, Viva is the only program in the world that lets you pay for a ticket entirely with points. Yes, that includes all taxes and any other surcharges. This frictionless system could be a massive boon for passengers and a novel one.
Learn more about the program's future, how it was set up, and much more by listening below!