IAG wants other companies – not just airlines – to use its Avios points

Earlier this year, IAG took over parts of the Qatar Airways loyalty program, replacing a currency scheme little known outside the Gulf with one that resonates with points-mad customers in Europe and North America. Now, IAG is searching for other programs that might use (and pay for) its Avios currency, a top executive said. “They have taken the currency, and we have worked with them so they still own the program,” Adam Daniels, chairman and CEO of IAG Loyalty, said of the Qatar agreement. “It is slightly different than what others have done before. We think it has potential.” IAG and Qatar Airways have a closer relationship than most airlines, with Qatar owning about 25 percent of IAG. But Daniels said a relationship could work with any partner, including a non airline. As loyalty becomes a bigger business, Daniels said, companies with less attractive programs may want to outsource them to name brands with bigger reaches. A spokeswoman for IAG Loyalty said Qatar’s Privilege Club enrolled “tens of thousands” of new customers in the first month after switching to IAG’s Avios currency. Broadening the program’s scope could lead to increased profits for IAG. Loyalty is one of the company’s six operating segments — the other five are airlines — and according to executives, one of its fastest growing.IAG does not break out results from its loyalty arm, but CEO Luis Gallego said on a July earnings call that loyalty increased its contribution to the company’s results in the past year. In a filing, IAG reported its “other revenue” increased 14 percent in the quarter ending in June, compared to the same period in 2019. It said the increase was mostly driven by its vacations and loyalty businesses. “We are growing double digits, and we continue to believe we can keep doing that,” Daniels said. “We can deliver value back to customers and the airlines. Increasingly, this revenue stream is going to be very important to them.”<br/>