State of Airport Loyalty Programs (2023)

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13   Three paths were followed to provide a thorough analysis of the state of U.S. airport loyalty programs. First, a comprehensive review of all primary­hub airports was conducted [as of 2021, categorized by the National Plan of Integrated Airport Systems (NPIAS)] to examine (1) whether these airports operate a loyalty program and (2) if so, the kind of loyalty program they operate. Second, the project team developed a questionnaire using the guidelines of the project panel, built it on Qualtrics, and distributed it to all primary­hub airports in the United States. Finally, inter­ national airport loyalty programs were identified and reviewed to make a comparison between airport loyalty programs of different nations. 3.1 Overview of U.S. Airport Loyalty Programs If customer loyalty programs are defined as “a marketing approach that recognizes and rewards customers who purchase or engage with a brand on a recurring basis” (Salesforce 2022), 54 out of the 145 primary­hub airports in the NPIAS were operating some kind of loyalty programs as of November 2022. After reviewing the websites of all the primary­hub airports and their cor­ responding programs, U.S. airport loyalty programs were categorized as follows: • Parking rewards programs offering travelers who park at airport facilities benefits such as discounted or free parking, rewards points redeemed for free parking, automated entry and exit lanes, and designated parking spaces • Third-party multi-airport customer loyalty programs • Airport lounge programs offering members access to airport lounges when traveling from or through the hosting airport • Blended programs combining at least two features of the above three programs • Community engagement programs providing convenience and engaging nontraveling visitors 3.1.1 Parking Rewards Programs Parking rewards programs are the most common choice for airports operating loyalty pro­ grams to recognize and reward travelers’ recurring interactions with airports. Of the 145 primary­ hub airports, 37 operate parking rewards programs. See Table 3 for a summary of parking rewards programs and associated airport categories. Airport parking rewards programs allow members to earn rewards points by spending with airport parking facilities. Travelers who wish to become program members must register with the program in advance so that their trips to airport parking facilities can be tracked and recorded. When members accumulate enough rewards points, they can redeem these points for discounted C H A P T E R   3 State of the Practice

Identifier Hub Enplanements (2021) Rewards Program Name Fee Rewards? Program Benefits ABE S 355,841 ABE Aero Club 15 trips No Designated spaces + long-term parking rates ALB S 966,201 Albany Park Ride & Fly's Frequent User Program Free Yes Free parking AUS L 6,666,215 ABIA Frequent Parker Program Free Yes Free parking BDL M 2,273,259 Auto-Pilot Rewards Program Free Yes Free parking + lanes without cashiers BOS L 10,909,817 Gold Parking Express $200/year No Guaranteed parking space, touchless payment BUF S 1,427,891 Frequent Parker Rewards Program Free Yes Free parking + dedicated lanes BUR M 1,942,417 Valet Parking Loyalty Program Free Yes Free hand car wash after 10 valet parkings CAE S 418,391 Premier Parking $1,000 No Flat-rate parking outside the terminal CVG M 3,050,597 CVG Parking Advantage Free Yes Free parking DAY S 517,621 DAYperks Free Yes Free parking + automatic entry/exit GSO S 627,000 PTI FastPass Free No No-ticket entry and exit lanes GSP S 878,450 GSP Parking Rewards Free Yes Free parking HOU M 5,560,780 Parking Plus Free Yes Parking discount or airlines miles IAH L 16,242,821 Parking Plus Free Yes Parking discount or airlines miles ICT S 633,562 ICT Rewards Free Yes Free parking IND M 3,487,100 parkIND Plus Program Free Yes Free parking JAC S 497,548 JAC Discount Parking Program Residents No Parking discount JAX M 2,425,685 JAX Passport Free Yes Free parking MCI M 3,795,290 KCI Rewards Free Yes Free parking MEM M 1,793,073 MEMPERKS Free Yes Free parking MHT S 478,143 MHT Smart Rewards Free Yes Parking with Thanks Again MKE M 2,231,010 MKE SmartPark Rewards Free Yes Free parking MSP L 12,211,409 ePark Elite Parking $65/month No Guaranteed parking space ORF M 1,658,024 Parking Perks Free Yes Free parking PHX L 18,940,287 PHX Sky Harbor Discount Parking Free No Discounted parking PVD S 1,159,679 Park Smart Rewards Free Yes Free parking ROC S 769,560 Parking Rewards (Mapco) Free Yes Free parking RSW M 5,080,805 RSW Rewards Free Yes Free parking, compatible with SunPass/LeeWay Pass SAT M 3,677,643 SAT Guaranteed Parking Program $360 or $240/month No Guaranteed preferred parking space SAV S 1,360,214 SAV PARKING REWARDS Free Yes Free parking SDF S 1,529,472 SDF Parking Rewards Free Yes Free parking + automated pass + compatible with RiverLink E-ZPass SEA L 17,430,195 Passport Parking $425/month No Unlimited in/out + designated spaces SGF S 480,975 SGF VIP Rewards Free Yes Free parking + automated service SJU M 4,738,725 Frequent Traveler Parking Program $299/month No Unlimited parking STL M 5,070,471 Frequent Parker Program Free Yes Free parking + automatic entry/exit SYR S 840,994 ParkSYR Free Yes Free parking + automatic entry/exit + compatible with NYS EZ Pass TUL S 1,154,527 TUL Parking Perks Free Yes Free parking + ticketless entry/exit + compatible with Oklahoma PIKEPASS Source: Airport websites (as of November 2022). S = small, M = medium, L = large. Location Table 3. Summary of airport parking rewards programs.

State of the Practice 15   or free parking at the airport. Several airports provide their members with automated entry and exit lanes using vehicle licenses or payment information provided by members. Some airports allow members to enter and exit parking facilities and pay parking fees using touchless payment systems such as E-ZPass. Airports oen collaborate with dedicated parking management service providers such as SP+ and LAZ Parking to implement parking rewards programs. Figure 2 provides an example of an airport parking rewards website from Louisville Muhammad Ali International Airport, one of the airports providing questionnaire responses. A few parking programs let their members pay a at fee, either monthly or annually, so that sub- scribed members can access guaranteed and designated parking spaces at airports [e.g., Seattle– Tacoma International Airport (SEA), Minneapolis–Saint Paul International Airport (MSP), and Boston Logan International Airport (BOS)]. Refer to Table 3 for a complete list of airport parking rewards programs. Some unique parking programs also have eligibility requirements for memberships. e JAC Discount Parking Program, operated by Jackson Hole Airport (JAC), requires members to reside within a 50-mile xed radius catchment area from the Town of Jackson (Jackson Hole Airport 2022). Eligible members can enjoy the discounted daily parking rate of $17, compared with a regular price of $25 a day (as of October 2022), as long as they do not park during blackout dates Figure 2. SDF Rewards website. c i ill li ti l i c l

16 State of Airport Loyalty Programs (Jackson Hole Airport 2022). The discounted parking is JAC’s effort to support the local com­ munity, considering the proximity of JAC to Yellowstone National Park. ABE Aero Club, operated by Lehigh Valley International Airport (ABE), provides designated spaces conveniently located in the Aero Club parking lot on a first­come, first­served basis to its members. ABE Aero Club limits its membership to travelers who make at least 15 air trips that depart from ABE airport within a 12­month period. In addition to receiving special parking spaces, qualified members are eligible to pay long­term parking rates. 3.1.2 Third-Party Multi-Airport Customer Loyalty Program Some airports join third­party operated multi­airport customer loyalty programs so that pro­ gram members can earn and redeem rewards at any airport vendors that join such programs. One common multi­airport customer loyalty program in the United States is Thanks Again, which requires travelers to register accounts with them and link debit or credit cards to member accounts. When members use their linked payment cards at participating airport vendors, trans­ actional data is synced with Thanks Again so that members are rewarded for such activities. Once members accumulate enough reward points in their accounts, they can choose to redeem them for merchant gift cards, cash back, or airline miles (Thanks Again 2022a). See Figure 3 for a timeline of primary­hub airports joining Thanks Again. (Refer to Appendix C for the FAA’s airport location identifiers.) 3.1.3 Airport Lounge Program Most airport lounges are operated by airlines as a key benefit for their top­tier frequent flyer program members and paid club members. In addition to these airline­operated clubs, some airports operate their own lounges or collaborate with commercial lounge operators to provide additional lounge access for travelers who depart from or connect through these airports. In this section, airport­operated lounges and commercial lounges are summarized. Airport-Operated Lounges As of November 2022, four primary­hub airports were operating their own lounges for their members or paid visitors. Memberships for these lounges vary. Qualified members can access these lounges before boarding their flights. See Table 4 for details. Priority Pass Lounges Priority Pass is a Collinson Group program allowing members access to airport lounges worldwide, regardless of their cabin class or airline frequent flyer program status. Travelers who wish to join the Priority Pass program can either pay annual membership fees or use credit card benefits offered by financial institutions such as American Express and JPMorgan Chase. Priority Pass works with airports worldwide to provide lounges and other services to its members, including restaurants, bars, retailers, and gaming facilities. As of November 2022, 47 primary­ hub airports were offering various services to Priority Pass members. See Figure 4 for the loca­ tion of these airports and the services provided by these airports. Figure 3. Timeline of primary-hub airports joining Thanks Again.

State of the Practice 17   Airport Lounge Memberships Blue Grass (LEX) The Club at Blue Grass • Day pass: $25 • Airline club members • American Express Platinum cardholders • Active-duty military members Colorado Springs (COS) Premier Lounge • Individual members: $299/12- months • One-day pass: $11 Harrisburg International (MDT) Susquehanna Club • Aged 21 and above • Fly at least 25,000 miles per year on an airplane serving MDT Valley International (HRL) VIA VIP Club • Every two years: $25 Source: Airport websites (as of November 2022). Table 4. Summary of airport-operated lounges. Figure 4. Priority Pass lounge and services locations. Source: Priority Pass (https://www.prioritypass.com/en/airport-lounges, as of November 2022). Guadalaiara Monterrey M É X I C O Dallas Denver Los Angeles San Francisco Houston Philadelphia Philadelphia New York New York Boston Miami Havana Atlanta St Louis Chicago Detroit Toronto Washington Calgary Edmonton Montreal Vancouver Seattle U N I T E D S T A T E S SAN TUS DFW HOU IAH MSY TPA MCO JAX ATL CLT BNA STL IND ORO DTW CLE PIT BWIDCA BUF PVD BOS JFK EWR LGA PHL IAD CVG RDU CHS LGA JFKEWR PHL BWI DCA IAD LAX LAS DEN SJC ONT SFO Priority Pass Program Type Lounge Only Lounge and Other Services Other Services Washington

18 State of Airport Loyalty Programs The Club e Club is an independent airport lounge network in the United States operated by Airport Dimensions, which is part of the Collinson Group. With its lounge presence in multiple U.S. air- ports and two airports in the United Kingdom, e Club provides conveniences to travelers who purchase single-use club passes ($50 per visit, as of November 2022) or are members of dierent lounge programs (LoungeBuddy 2022b). As of November 2022, e Club lounges were present in 16 primary-hub airports. See Figure 5 for the location of e Club airport lounges. Plaza Premium Lounge Plaza Premium Lounge is an airport lounge chain operated by the Plaza Premium Group. e group comprises four core business segments: airport lounges, airport terminal hotels, airport meet and greet services, and airport dining concepts (Plaza Premium Lounge 2022). To gain access to Plaza Premium Lounges, travelers can purchase a Plaza Premium Lounge Pass or apply for benets provided by credit cards or dierent lounge programs (LoungeBuddy 2022a). Plaza Premium Lounges are in multiple airports around the world. In the United States, travelers could access their facilities in seven primary-hub airports as of November 2022. See Figure 6 for the location of Plaza Premium Lounges in the United States. Source: he Club (https://theclubairportlounges.com, as of November 2022). Figure 5. The Club lounge locations.

State of the Practice 19   e Plaza Premium Lounges at Boston Logan International Airport (BOS), Dulles Inter- national Airport (IAD), John F. Kennedy International Airport (JFK), Newark Liberty International Airport (EWR), and San Francisco International Airport (SFO) are co-operated as Virgin Atlantic Clubhouses. Plaza Premium Lounges at Dallas/Fort Worth International Airport (DFW) and Orlando International Airport (MCO) are independent lounges operated by the Plaza Premium Group. Escape Lounges Originating at the Manchester Airport (MAN) in the United Kingdom, Escape Lounges expanded to the United States in 2015. As of 2023, Escape Lounges–e Centurion® Studio Partner were present in 13 airports across the United States (Escapelounges.com 2023). Refer to Figure 7 for the locations of these lounges. Members of four dierent frequent yer programs can access Escape Lounges. Travelers who are not associated with the above programs but still wish to access Escape Lounges can pay for their visit at the lounge or online. Source: la a remium ounge (https:// .pla apremiumlounge.com, as of November 2022). Figure 6. Plaza Premium Lounge locations.

20 State of Airport Loyalty Programs Aspire Lounges Aspire Lounges are operated by Swissport, a Swiss aviation service company providing airport ground handling, lounge hospitality, and cargo handling services. Aspire Lounges are present at over 64 locations in over 20 countries; most of them are located in Europe (Swissport 2023). Aspire Lounges have grown to be the United Kingdom’s largest lounge provider. e presence of Aspire Lounges is still relatively limited in the United States. As of May 2023, Aspire Lounges were available for passengers who depart from Terminal 2 and 4 of Ontario International Airport (ONT) and San Diego International Airport (SAN), both in California. Members of seven dierent lounge programs have access to Aspire Lounges. In addition, elite members of frequent yer programs of the selected airline partners also have access to Aspire Lounges. Airport Lounges Associated with Banks Several banks oer access to airport lounges as a benet for their clients. Banks traditionally col- laborate with programs such as Priority Pass to enable these benets. Realizing the attractiveness of airport lounges to frequent travelers, which are likely high-value bank customers, a few banks Source: scape ounges (https://escapelounges.com/us/loca ons, as of ay 202 ). Note: scape ounges are available in and at hoeni S y arbor nterna onal Airport ( ) and in erminals A and at Sacramento nterna onal Airport (S ). Figure 7. Escape Lounges locations.

State of the Practice 21   choose to go one step further by opening and operating their own lounges at strategic locations. One of those financial institutions is American Express. Since 2022, both Capital One and JPMorgan Chase have also announced plans of opening airport lounges in the United States. American Express Centurion Lounges. Eligible American Express card holders can access The Centurion® Network, which consists of more than 40 locations worldwide, including Centurion Lounges and Escape Lounges–The Centurion® Studio Partner, while they travel. Within the United States, Centurion Lounges are currently present in nine airports. Refer to Fig­ ure 8 for locations of Centurion Lounges and Escape Lounges–The Centurion® Studio Partner. Capital One Lounges. Capital One announced opening lounges at U.S. airports. Its first lounge opened at Dallas/Fort Worth International Airport (DFW) in 2022. Two other lounges are planned at Denver International Airport (DEN) and Dulles Inter national Airport (IAD). Capital One customers can enjoy complimentary or specially priced access to Capital One Lounges with their Venture X, Venture, or Spark Miles cards (Capital One 2022). Chase Sapphire Lounge by The Club. On May 16, 2023, Chase opened the first domestic Chase Sapphire Lounge by The Club at Boston Logan International Airport (BOS) (Business Wire 2023). Chase Sapphire Reserve credit card holders will be able to access this lounge when they travel from BOS. As of 2023, Chase has plans of opening more Sapphire Lounges by The Club in the following airports: • Austin­Bergstrom International Airport (AUS) • Harry Reid International Airport (LAS) Source: American Express (https://www.thecenturionlounge.com, as of May 2023). Figure 8. American Express global lounge collection.

22 State of Airport Loyalty Programs • New York LaGuardia Airport (LGA) • Philadelphia International Airport (PHL) • Phoenix Sky Harbor International Airport (PHX) • San Diego International Airport (SAN) • Washington Dulles International Airport (IAD) United Service Organizations Inc. Airport Lounges e United Service Organizations Inc. (USO) is an American nonprot, charitable corporation that provides live entertainment, social facilities, and other programs to members of the United States Armed Forces and their families. USO operates airport lounges to provide amenities to the military community on their journeys. USO lounges are located before or aer Transportation Security Administration (TSA) security checkpoints. Service members can nd benets ranging from free snacks and coee to a comfortable chair for a quick nap. Most USO lounges are staed by volunteers. Of the USO’s more than 230 locations worldwide, more than 50 are USO airport lounges, which are located at several major and local airports across the United States and abroad (DeSimone 2019). See Figure 9 for locations of USO airport lounges in the United States as of October 2022. Source: nited Service rgani a ons (https:// .uso.org/loca ons, as of ctober 2022). Figure 9. USO airport lounge locations.

State of the Practice 23   3.1.4 Blended Programs In addition to the above­mentioned airport loyalty program types, some airports operate pro­ grams combining two or three loyalty program features. This type of program is defined as a “blended program.” See Table 5 for a summary of blended airport loyalty programs and their associated key benefits. 3.1.5 Community Engagement Programs A few airports are operating special programs that allow nontraveling visitors to go beyond security checkpoints to say goodbye to family members or friends and access airport facilities in sterile areas. Although these programs may appear to be different from typical customer loyalty programs, they were created to enhance community engagement by providing conveniences to nontraveling visitors. Examples of such programs include the following: • Detroit Metropolitan Wayne County Airport (DTW): DTW Destination Pass (DTW 2023) – Advance online application required – Available for use from 8 a.m. until 8 p.m. daily at both the McNamara and Evans terminals Airports Blending Types Key Benefits Atlantic City International (ACY) discount + reserved parking + news & alerts • Discounts on qualifying purchases • Membership perks, such as reserved parking on a first-come, first-served basis, and promotional items • The latest news and alerts regarding ACY services Boston Logan International (BOS) parking + Thanks Again • Guaranteed parking space • Thanks Again rewards Colorado Springs (COS) parking + lounge • Free parking (up to 90 days) • Premier Lounge access Columbia Metro (CAE) parking + Thanks Again • Flat-rate parking right outside the airport terminal • Thanks Again rewards Harrisburg International (MDT) parking + rewards + lounge • HIA Flyer Rewards Parking rewards Fly Buck • Susquehanna Club Lehigh Valley International (ABE) parking + Thanks Again • Designated spaces • Long-term parking rates • Thanks Again rewards Manchester Boston Regional (MHT) parking + Thanks Again • Proximity card for parking entry/exit • Thanks Again rewards Tulsa International (TUL) parking + Thanks Again • Parking rewards • Thanks Again rewards Data Source: Airport websites (as of November 2022). Table 5. Summary of blended programs.

24 State of Airport Loyalty Programs – The program allows nonticketed visitors to surprise arriving travelers at gates, spend extra time with loved ones, and enjoy restaurants and shops. • John Wayne/Orange County Airport (SNA): OC AirPASS (John Wayne Airport 2022) – Check­in at the information booth – Applicants verified through an online security system – Visitors can shop, dine, watch planes, view art exhibits, and greet friends and relatives when they arrive at the gate or accompany them before their flight. • Louis Armstrong New Orleans International Airport (MSY): MSY Guest Pass (Louis Armstrong New Orleans International Airport 2022) – Required reservations must be made no less than 24 hours in advance. – The number of passes issued each day is limited. – Nonticketed visitors can enjoy more than 40 concessions beyond security. • Ontario International Airport (ONT): ONT+ Visitor Pass Program (ONT 2022) – Applications on the day of visit or up to seven days in advance – Email approval – ONT+ Visitor Pass Program allows the nontraveling public to visit ONT and enjoy the amenities on the post­security side of the passenger terminal. • Seattle­Tacoma International Airport (SEA): SEA Visitor Pass (SEA 2023) – Advance online application required – Limited to 100 visitors per day – Only for personal use. Commercial or professional use is forbidden and results in revoca­ tion of program access. In addition to the aforementioned airports, other airports had similar programs in the past providing conveniences to airport visitors, such as Pittsburgh International Airport (PIT) and Tampa International Airport (TPA). However, both PIT and TPA suspended their myPITpass or TPA All Access programs due to the COVID­19 pandemic and have not resumed operations as of February 2023 (Pittsburgh International Airport 2023; Tampa International Airport 2023). 3.2 Summary of Survey Results To better synthesize airports’ practices in planning and operating loyalty programs, the project team designed a survey questionnaire. The questionnaire was reviewed by the project panel and refined by the project team to capture the essence of airport loyalty programs and address the project objectives. The survey questionnaire was distributed to U.S. primary­hub airports (see Appendix C). The project team took a mixed approach for sending the questionnaire to appropriate airport personnel. Staff working for the marketing department/team of all the primary­hub airports were identified by searching online and on LinkedIn. After manually examining and confirming the professional profiles of these staff, the survey invitation was sent to them directly using their business email addresses. A week later, if no responses had been received from the corresponding airports, they were re­contacted. Meanwhile, the Marketing, Communications, and Customer Experience Committee of Airports Council International–North America helped the project team distribute the survey questionnaire to its members. The survey data collection was conducted in October 2022. By the end of the month, 41 valid responses had been recorded. Of these responses, eight are from large­hub airports, seven are from medium­hub airports, 24 are from small­hub airports, and one is from a non­hub airport. Detailed survey responses are presented in Appendix B. Survey Responses.

State of the Practice 25   3.2.1 Demographics Most of the survey responses (22/41) were completed by marketing personnel, followed by C­suite (7/41), terminal operations (6/41), and landside operations (6/41). The remainder of the air­ port departments also participated, but their presence was limited to one to two responses per sector. When asked if their airport is a multi­airport customer loyalty program partner, 29 responses indicated “No.” Five airports suggested they were former partners of Thanks Again, but that partner ship was not active at the time of the survey. Only two airports were currently affiliated with Thanks Again at the time of the survey. When the project team designed the survey questionnaire, four different scenarios were con­ sidered, as follows: • An airport is currently operating an airport loyalty program. • An airport is currently building an airport loyalty program. • An airport had previously operated a loyalty program, but the program had been terminated. • An airport had previously considered an airport loyalty program but decided not to pursue it. The answer to this question directed participants to different sections of the survey so that questions would be more relevant to their operations. Airports’ responses to this question are provided in Figure 10. Figure 10. Survey participating airports and their loyalty program status.

26 State of Airport Loyalty Programs 3.2.2 Airports Operating Loyalty Programs Based on the survey results, eight airports indicated that they are currently operating loyalty programs. These airports are as follows: • Baltimore/Washington International Thurgood Marshall Airport (BWI) • Colorado Springs Airport (COS) • Gainesville Regional Airport (GNV) – Note: GNV is a primary, non­hub airport as of 2021. • Greenville Spartanburg International Airport (GSP) • Harrisburg International Airport (MDT) • Jacksonville International Airport (JAX) • Long Beach (Daugherty Field) Airport (LGB) – Note: Responses from LGB selected “I am not sure” for several questions. The project team could not locate relevant information on the airport website. • Milwaukee Mitchell International Airport (MKE) Of the above eight airports, six airports commenced their loyalty programs after 2010. The sizes of these loyalty programs are quite limited—all under 50,000 members in total. In 2021, five programs acquired not more than 500 members, and one attracted 501–1,000 members. Five airports indicated that their active members in the last 12 months are no more than 5,000. Seven out of eight airports do not charge annual membership fees for existing members or joining fees for new members. The only exception is Colorado Springs Airport (COS)—their COS Premier program provides free parking for up to 90 days per trip and airport lounge access. See Section 4.1 Colorado Springs Airport (COS) for more information about this program. All airports allow travelers to sign up for their loyalty programs online. Harrisburg International Airport (MDT) also provides an on­site registration option. Regarding how members are identified when they transact with airports, airports’ responses are quite diverse, covering the following options: • QR codes • Barcodes • Chip cards • Unique ID such as membership ID/mobile number/email • Contactless smart cards/tags such as near­field communication or radio frequency identifica­ tion cards/tags Unlike Colorado Springs Airport (COS), most airport loyalty programs adopt a rewards system to allow members to earn, collect, and redeem points. These programs track members’ activities by either the dollar values of transactions or the number of transactions within a period. Unlike international airport loyalty programs introduced in Section 3.3 Overview of Selected Inter­ national Airport Loyalty Programs, seven responses indicated that their programs do not offer membership tiers. Once again, COS is the exception to Question 3.12, as they offer individual, family, and corporate memberships to travelers of different types. None of the programs that participated in this survey allow their members to earn rewards points with external business partners, which differs from international airports. As the team discovered in Section 3.1 Overview of U.S. Airport Loyalty Programs, regarding areas where members could earn and redeem rewards, airports and programs participating in this survey responded that most U.S. airport loyalty programs are essentially parking rewards programs—or, at least, parking is the most significant component of U.S. airport loyalty pro­ grams. Compared to international programs, U.S. airport loyalty programs do not have as many earning and redeeming options. Refer to Figure 11 and Figure 12 for detailed responses to survey questions 3.15 and 3.16, respectively.

State of the Practice 27   e survey has a few questions concerning program development and operations. e only program developed by an external partner is SmartPark Rewards at Milwaukee Mitchell Inter- national Airport (MKE). e program was developed and operated by InterFlight Parking and NetPark. MKE worked with the external partner because they had specic expertise lacking in- house. In addition to MKE, JAX Passport at Jacksonville International Airport (JAX) is operated by R Solutions, a merchandising, sales promotions, incentives, brand awareness, and local store marketing service provider. Other programs are operated in-house by hosting airports. Regarding the management of program members’ data, airports that participated in the sur- vey provided several distinctive options and service providers. Airports use databases, spread- sheets, customer relationship management systems, and customer data platforms. See Table 6 for a list of airports and their data management choices. In addition, Baltimore/Washington International (BWI) and Milwaukee Mitchell International (MKE) airports indicated that they Figure 12. Responses to Q3.16 – “Where can members redeem rewards?” Figure 11. Responses to Q3.15 – “Where do members earn rewards from?”

28 State of Airport Loyalty Programs use an application programming interface to reconcile members’ activities with external busi­ ness partners. A few options were provided in survey Question 3.22 to collect airports’ opinions about the benefits of loyalty programs. Airports’ responses indicate that loyalty programs have the poten­ tial to introduce or create various benefits. See Table 7 for airports’ responses to Q3.22. Meanwhile, Milwaukee Mitchell International Airport (MKE) indicated that its SmartPark Rewards program has a weak membership base. Gainesville Regional Airport (GNV) believed that their biggest threat at the time of the survey (October 2022) was the COVID­19 pandemic. Business travelers at GNV had not yet recovered to their pre­pandemic level. In addition, GNV Survey Item Options Airports’ Responses Our program uses a database. JAX: TIBA - Johnson Controls (JCI) MKE: NetPark Our program uses spreadsheets. GNV Our program uses a dedicated customer relationship management (CRM) system. MDT Our program uses a dedicated customer data platform (CDP). GSP Our program uses other approaches. COS: Symmetry Security Program I am not sure. BWI, LGB Table 6. Airports’ responses to Q3.20 – “How do airports manage data?” Survey Item Options Airport(s) Our program enables us to learn more about our customers: We now have access to customer data that we never had before. BWI, LGB, GSP, MKE, MDT Our program has made our customers loyal to us: Customers are more likely to fly with us when it comes to air travel. JAX, LGB, MKE, GNV Our program enables us to talk to our customers directly using the contact information provided by customers. LGB, GSP, MKE, MDT Our program has enhanced the branding of our airport. JAX, GSP, GNV Our program has increased members’ average spending at airports, especially compared with nonmembers. LGB I don’t have enough information to answer this question. COS Table 7. Airports’ responses to Q3.22 – “What are the benefits of airport loyalty programs?”

State of the Practice 29   added that the location of their lounge (before TSA security checks) might discourage some members from using it before boarding. 3.2.3 Airports Building Loyalty Programs Of the airports responding to the survey invitations, only one indicated that they are currently building an airport loyalty program as of 2022. Richmond International Airport (RIC) estimated that its program would begin operations in 2023. Its program “is focused on incentivizing the use of airport­owned parking facilities.” See Appendix B. Survey Responses for details. 3.2.4 Airports That Had Considered but Decided Not to Pursue Loyalty Programs A total of 14 airports responded that they have considered loyalty programs since 2010 but eventually decided not to pursue the idea. Apart from one airport that did not disclose its name, the other 13 airports are as follows: • Asheville Regional Airport (AVL) • Blue Grass Airport (LEX)* • Denver International Airport (DEN) • Fort Lauderdale/Hollywood International Airport (FLL) • Long Island MacArthur Airport (ISP) • Louis Armstrong New Orleans International Airport (MSY) • Phoenix Sky Harbor International Airport (PHX)* • Raleigh­Durham International Airport (RDU) • Redmond Municipal Airport (RDM) • Ronald Reagan Washington National Airport (DCA) • San Francisco International Airport (SFO) • San Jose Mineta International Airport (SJC) • Tampa International Airport (TPA) *This list may appear to have some discrepancies with the summary in Section 3.1 Overview of U.S. Airport Loyalty Programs because, for instance, some airports indicated that they have chosen not to pursue a loyalty program, but indicated in another response that they are operating a parking rewards program or a lounge program. This discrepancy is likely caused by differences in interpreting the definition of loyalty programs. Participating airports that answered survey questions Q5.2 and Q5.3 provided detailed justi­ fications for why their airports did not eventually adopt loyalty programs. Besides options that were provided to them, some airports provided additional information. In particular, a participant who represents a medium­hub airport said: It never rose to the top of our priority list with already overwhelmed staffing pre­pandemic, then the pandemic came, and we just dropped it. It could resume in the future. and I’m personally skeptical of the benefit. Plenty of data exist showing that travelers are overwhelmingly driven by a combination of price, schedule, and airline loyalty (to various degrees). Loyalty programs may make a difference in highly competitive markets where often “all else is equal.” Airports are rarely in that position—in nearly all cases, the circumstances for one airport (e.g., location relative to the traveler’s needs, flight schedules, airline presence, airline pricing, nonstop route network) vary from others near it enough that airports truly have to “compete” based on finding the functional niche they serve and targeting those customers in that niche.

30 State of Airport Loyalty Programs 3.2.5 Airports That Had Terminated Loyalty Programs Three airports indicated that they have formally terminated their loyalty programs as of Octo­ ber 2022. These airports are as follows: • Eastern Iowa Airport (CID) • Savannah/Hilton Head International Airport (SAV) • Wichita Dwight D. Eisenhower National Airport (ICT) The three airports terminated their loyalty programs during the period from 2011 to 2015. All three airports said they did not see a clear benefit in operating airport loyalty programs. In addition, Wichita Dwight D. Eisenhower National Airport (ICT) mentioned the cost of opera­ tions, and Savannah/Hilton Head International (SAV) did not have a strong membership base. It should be noted that both ICT and SAV currently operate airport parking rewards programs, and Eastern Iowa Airport (CID) joined the Thanks Again network in 2012 (See Figure 3). 3.3 Overview of Selected International Airport Loyalty Programs To compare airport loyalty programs of different countries, six loyalty programs were identi­ fied and reviewed from airports outside of the United States. The airports and their associated loyalty programs are as follows: • Amsterdam Airport Schiphol (AMS): Privium • Auckland Airport (AKL): Strata Club • London Heathrow Airport (LHR): Heathrow Rewards • Nice Côte d’Azur Airport (NCE): Club Airport Premier • Paris Aéroport (CDG & ORY): My Paris Aéroport • Singapore Changi Airport (SIN): Changi Rewards The selected international airport loyalty programs were viewed by their membership eligibili­ ties, reward points earning and redeeming, validity of points, benefits, and membership tiers. See Table 8 for a summary of selected international airport loyalty programs. Unlike U.S. airport loyalty programs, the six reviewed international loyalty programs are pri­ marily shopping rewards programs (Strata Club at Auckland Airport, Heathrow Rewards at London Heathrow Airport, My Paris Aéroport at Paris Charles de Gaulle Airport, Paris­Orly Airport, and Changi Rewards at Singapore Changi Airport). Members can earn rewards points by spending at participating airport retailers, parking facilities, lounges, and other services. Points can then be redeemed for vouchers or discounts at these locations. Most programs also offer different tiers within their programs. Customers who spend more within a certain period qualify for top­tier memberships, which unlock extra benefits. The Privium program offered by Amsterdam Airport Schiphol (AMS) and Club Airport Premier by Nice Côte d’Azur Airport (NCE) differ from the four shopping rewards programs listed earlier. These programs offer different types of benefits to members of different tiers. To qualify for higher tiers, members must either pay different annual membership fees (Privium) or meet minimum spending requirements (Club Airport Premier). The benefits of Privium also extend to other air­ ports within the Netherlands, making the program more attractive to its members.

Airport Program Membership Earning Redeeming Validity Benefits Tiers AKL Strata Club Free • By spending on retail, parking, online retailer, lounges, and rental cars • NZ $1 = 1 point • Shopping vouchers • Parking discount • Lounge visit 3 years since earned • Parking discount • Retail discount • Lounge access/discount • Club • Silver • Gold • Platinum AMS Privium • EU, LIE, CHE, NOR, and ISL residents only • €155 – Basic • €260 – Plus — — — • Privium Club Lounge • Retail discount • Fast track at EIN • Lounge access at EIN & RTM airports • Privium Basic • Privium Plus CDG ORY My Paris Aéroport Free • BuYPARIS DUTY-FREE & parking reservation €1 = 2 points • Fashion stores €1 = 1 point • Airline miles • Shopping vouchers • Parking discount • Initially, the end of the 3rd year, then 36 months • Wi-Fi access • Discount at participating retailers • Flight alerts n/a LHR Heathrow Rewards Free • By spending on retail, restaurants, bars, parking, and forex • £1 = 1 point • Bonus points for certain purchase • Airline miles • Discounts • Shopping vouchers 3 years from the last account activity Bonus points for platinum members • Standard • Platinum NCE Club Airport Premier Free • Earn CAPS to qualify for higher-tier memberships — — • Dedicated line & parking • VIP lounges • Discount at meet & greet, business center, & forex • Access • Gold • Platinum SIN ChangiRewards Free • By retail spending • $10 = 10 points • Bonus points for high- tier members • e-Vouchers exclusive rewards Until June 30 of the following program year • Free parking & lounge access for top-tier members • Basic • Gold • Platinum Data Source: Airport websites (as of November 2022). Table 8. Summary of selected international airport loyalty programs.