airBaltic adds elite status option to Planie’s NFTs
Passengers can now purchase elite status on airBaltic as part of the company’s efforts to bring NFTs into the loyalty program. AirBaltic Club members who acquire 25 of the company’s Planies NFTs will receive the VIP status level of the program.
They are priced in Ethereum, so the cost of buying them can vary. At today’s prices, it would cost around $3,100 to buy the NFTs. To qualify through normal flight activity will require 60 one-way trips.
In addition to providing a year of elite status for purchasing Planies, the airBaltic Club member will also earn points for holding the NFTs. Late last year, the company began issuing 20 points per day to all NFT holders and linked them to their club account.
Read more: A blockchain loyalty revolution, led by airBaltic
While airBaltic is keen to see travelers enter the world of NFT, the program has its limitations. The VIP status boost for holding Planies is a one-time deal and only lasts for one year.
AirBaltic is the most advanced in its use of NFTs within its operations, but it is not the only player. Air Europa was keen to add an NFT-based ticketing option to its offerings, for example. Whether it survives the proposed merger with IAG remains to be seen. Etihad also tried to cash in on the NFT craze, selling Silver elite status via tokens. This offer was far less interchangeable than the airBaltic game.
Read more: Air Europa adds NFTicket platform
But why??
This latest effort to symbolize the loyalty program once again raises a significant question: What problem is the carrier trying to solve with the move?
Selling elite status certainly does not require NFTs. CEO Martin Gauss previously hinted that the status or an account itself could eventually be represented by a token and bought or sold:
You cannot transfer your frequent flyer card to someone else today. You can in the future do that if it is an NFT. This is not something we do yet, but why not? You have a card. You have earned all of this. It has value. Why not? It is provocative.
But that is not what is happening here. Stamping NFTs and putting them on the open market would be a truly innovative development. Under such a plan, airBaltic would have control over the number of status symbols issued, and the airline could still take its 7.5% cut on all transfer transactions.
Perhaps it’s also worth noting that when the Planies program was launched, Gauss expected a cost to collectors of around $300. This “investment” would allow holders to earn about one free ticket each year, a deal Gauss described as “a real value” for both parties. With Planies now about 50% cheaper, it may be less compelling for the carrier, but a better value for someone interested in collecting the airBaltic points. And the earning rate of 20 points/day has not changed, despite the lower acquisition cost of tokens.
More fun with the NFT airline:
A favor to ask while you’re here…
Did you like the content? Or learn something useful? Or do you generally just think this is the kind of story you want to see more of? Consider support the site through a donation (any amount helps). It helps me stay independent and avoid the credit card blur.
