Rex Airlines: Regional Excellence Through Loyalty
How an Australian regional carrier transformed customer relationships with integrated loyalty solutions
The Challenge
Regional Express (Rex) Airlines, one of Australia's largest regional carriers, faced unique challenges in the competitive Australian aviation market:
- Strong competition from major carriers on key regional routes
- Limited customer data and segmentation capabilities
- Need to increase ancillary revenue and passenger yield
- Low customer retention compared to larger airlines
- Limited resources for implementing complex loyalty systems
Industry Context
The Australian regional aviation market serves critical connectivity needs for remote communities but faces challenges including high operational costs, seasonal demand fluctuations, and competition from major carriers on key routes.
76%
of routes have only one carrier
18%
average profit margin
The Solution
CustomerInspire partnered with Rex Airlines to implement a tailored loyalty solution designed specifically for regional carriers:
Rex Flyer Program
A simplified yet powerful loyalty program offering relevant benefits for frequent regional travelers, with a focus on practical rewards that matter to regional communities.
Data-Driven Personalization
Advanced customer data platform to unify passenger information and enable targeted communication based on travel patterns and preferences.
Community-Focused Benefits
Unique rewards tailored to regional communities, including partnerships with local businesses and services that resonate with regional travelers.
Implementation Timeline
Phase 1: Initial Assessment
1 month
Conducted a comprehensive analysis of Rex's customer base, routes, and existing systems
Analyzed customer data across 60+ regional routes to identify loyalty opportunities and regional-specific needs that would resonate with Rex's customer base.
Phase 2: Program Design
2 months
Created a loyalty framework optimized for regional carrier economics and customer preferences
Developed a tiered program structure with benefits specifically designed for regional travelers, including flexible redemption options and partnerships with regional businesses.
Phase 3: Technical Integration
2 months
Implemented the CustomerInspire platform with Rex's booking systems and customer touchpoints
Integrated the loyalty platform with Rex's reservation system, website, mobile app, and airport check-in systems to create a seamless customer experience.
Phase 4: Launch and Optimization
1 month
Rolled out the program with initial marketing campaigns and performance monitoring
Launched with a phased rollout strategy, starting with key routes and expanding to the full network, with continuous optimization based on real-time performance data.
Results & Business Impact
52% Engagement
Program engagement rate among enrolled customers, significantly higher than industry average
29% Revenue Growth
Increase in revenue on key routes with loyalty program members
31% Retention
Improvement in customer retention, creating stable demand on competitive routes
43% Ancillary Growth
Increase in ancillary revenue through personalized offers to loyalty members
Additional Outcomes
- 18% increase in average ticket value
- 3.4x return on investment in the CustomerInspire platform
- 26% increase in mobile app usage
- 42% higher Net Promoter Score from program members
CustomerInspire's Support
Rapid Deployment
Complete implementation in just 6 months, minimizing disruption to Rex's operations
Tailored Solution
Customized approach designed specifically for regional airline economics and customer needs
Ongoing Optimization
Continuous program refinement based on performance data and customer feedback
Key Innovations
Simplicity Drives Adoption: Streamlined program structure with clear benefits resulted in higher engagement
Local Relevance Matters: Partnerships with regional businesses created unique value for travelers
Operational Integration: Seamless integration with existing systems minimized disruption
Data-Driven Personalization: Even with limited historical data, advanced segmentation drove results
