US-based travel technology company Uber has its sights set on becoming a leading player in the airline loyalty ecosystem. The carrier has made waves for its large-scale partnerships with major airlines, and Riyadh Air is the latest airline to join this ever-growing list. This will offer exclusive benefits to members of Riyadh’s upcoming loyalty program, which is being rolled out as the young airline prepares to enter the market.
Delta’s list of existing partnerships extends far beyond Riyadh Air, as the airline has similar partnerships with Delta Air Lines and Air France. Others have also integrated Uber services into their apps, with American Airlines being a key example. We analyze the benefits that this new partnership offers to Riyadh Air and its passengers.
A Brief Overview Of The New Partnership Itself
Riyadh Air, a Saudi national airline that is preparing to join the market, has been quick to highlight its interest in engaging with other players across the travel industry. Riyadh Air’s leadership team met with representatives from Uber at the Boeing factory in Charleston, South Carolina, where a signing ceremony was held alongside Riyadh Air’s first aircraft, according to Yahoo Finance.
This is not the only strategic partnership that the airline has pushed forward. The carrier will be partnering with Kayanee, a Saudi well-being brand, to introduce a collection of in-flight amenity kits and loungewear. Riyadh Air’s leadership team is undeniably excited about the opportunities this new partnership brings to the table. In a statement, Osamah Alnuaiser, the airline’s Senior Vice President of Marketing and Corporate Communications, had the following words to share:
“This partnership with Uber is another example of how Riyadh Air is reimagining the travel experience. By integrating trusted and innovative services into our offering, we are ensuring our guests enjoy a seamless, premium journey both in the air and on the ground.”
What Does This Partnership Bring To The Table For Riyadh Air?
This partnership with Uber offers Riyadh Air instant ground-to-air connectivity without having to actually build out a mobility stack. The airline can offer passengers the opportunity to bundle rides with flights and have the impact of trip interruptions diminished. This will hopefully help the carrier improve on-time departures with reliable ETAs and curbside pick-up coordination.
From a tactical perspective, this move offers better loyalty monetization, including ride credits and status boosts that can be earned from taking rides. This widens the appeal of the airline’s loyalty program and helps encourage members to fly with the carrier. From a strategic perspective, Uber’s scale supplies rich demand and location data to passengers, which they can use to personalize their offers.
Commercial marketing teams can also use this new partnership to their own advantage. They can use it to improve the company’s appeal with high-spending leisure and corporate travelers, a critical demographic for any Saudi Arabian airline. The ability to offer a premium value proposition is essential for airlines like Riyadh Air. Across the board, this partnership will offer improved loyalty engagement and better operational reliability from day one.
What Is Our Bottom Line When It Comes To This Specific Partnership?
At the end of the day, this partnership is a unique opportunity for Riyadh Air to expand its loyalty network before the carrier has even launched services on a large scale. The airline has to differentiate itself from Saudi, the long-time flag carrier of Saudi Arabia, which has certainly struggled in recent years.
Reputation is everything in the modern aviation industry, and, when it comes to attracting customers from high-spending demographics, it is essential. Riyadh Air is looking to build a premium brand, and this kind of partnership is a key step in the right direction.