Under crisis with collapse of 123milhas, redemption of miles grows 23.5% – 09/24/2023 – Panel SA

Consumers registered in loyalty programs redeemed more miles and points in the quarter ended in June. The growth was 23.5% compared to the same period in 2022 and almost 85% were airline tickets.

Among international destinations, the most sought after was Orlando, in the United States, and, in Brazil, São Paulo was the most frequent choice. Together, the loyalty programs associated with Abemf (Brazilian Association of Loyalty Market Companies) have 306.3 million active registrations, an increase of 9.5% compared to 2022.

The loyalty market has received unusual attention this year since, in mid-August, 123milhas suspended packages and the issuance of promotional tickets. Days later, the company filed for judicial recovery and the crisis also hit Hotmilhas and Maxmilhas, which belong to 123milhas.

Abemf does not comment on the matter. Paulo Curro, the entity’s executive director, says only that “the loyalty market is made up of companies that offer benefits to customers for their purchases and payments.”

The basis of the association is the Azul, Dotz, Esfera, Juntos Somos Mais, Latam Pass, Livelo, Mastercard, Orbia, Smiles, Stix and Vertem programs. In the second quarter of this year, the sector earned R$4.9 billion, an increase of 20.4% compared to 2022.

In addition to airline tickets, consumers used their points and miles to purchase household items, to receive discounts and cashback.

With Diego Felix

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