He Discusses a Strategic Approach to Co-branded Credit Cards
In an industry where credit card launches can feel like routine announcements, Porter Airlines has managed to create genuine excitement earlier this week. When Edmond (Eddie) Eldebs, Senior Vice President and Chief Commercial Officer at Porter, agreed to walk me through the airlines new co-branded credit card strategy, I knew this wasn’t going to be another paint-by-numbers interview.
Lia: What was the primary motivation behind launching these co-branded credit cards?
Eddie: Porter has grown significantly across North America, covering every province in Canada and expanding into the US. This is the right time to bring forward a compelling credit card and loyalty value proposition. Our customers have been asking for a card for some time, and we now have a solid network to support it.
Lia: How do these cards differentiate themselves in the competitive travel credit card market?
Eddie: Our unique offering is instant access to frequent flyer benefits. The BMO VIPorter MasterCard provides instant passport status with dedicated check-in, priority boarding, and security. The BMO VIPorter World Elite Card offers a $0 companion pass and up to three points per dollar on Porter flights and the BMO VIPorter MasterCard provides 35% off the round-trip flight for four. We’ve designed these cards around benefits that economy travellers truly value.
Lia: Can you elaborate on the research behind these card designs?
Eddie: We conducted extensive research with BMO to understand what economy travellers want. We’ve consistently received customer satisfaction scores over 85% and net promoter scores over 55%. The cards reflect our deep understanding of our customers’ needs, offering benefits like free checked bags, seat assignments, and attractive point-earning structures.
Lia: What initial metrics are you using to measure the cards’ success?
Eddie: Our wait list was incredibly promising – over 30,000 people signed up before we even announced full details. Success for us isn’t just about numbers, but about hearing from customers that they value the benefits we’ve created. We’re looking to grow our 2.6 million loyalty member base and enhance customer engagement.
Lia: How are you integrating these cards into the broader customer experience?
Eddie: We’ve seamlessly integrated card benefits into our Avid Traveler program. Cardholders instantly receive status benefits like free checked bags, seat assignments, and priority services. These are already built into our app, providing immediate value from the moment of card activation.
Lia: This news comes on the heels of a redemption partnership announcement with Air Transat and Alaska Airlines, making VIPorter a more valuable program. What was the thinking behind this partnership?
Eddie: This is really just the beginning. We started with Air Transat, who is an important joint venture partner of ours. Now you can redeem for flights to Europe and to the Caribbean. With Alaska Airlines, it opens up the US. We’re just going to continue to add new partners. Our plan is to open up the globe for our VIPorter members and give them access to many redemption options.
The strategy and planning for Porter Airlines co-branded credit card launch is impressive and shows their desire to transcends the traditional points accumulation model. The most compelling aspects of their efforts are:
- Comprehensive Research: The airline, along with BMO, designed their value proposition from in-depth consumer insights into current traveller needs;
- Immediate Frequent Flyer Benefits: Porter is providing instant value to cardholders through their priority services and companion passes; and
- Increased Redemption Options: Partnerships with Air Transat and Alaska Airlines provide broader options to VIPorter members.
Only just launched, it will be fascinating to see how these strategic innovations resonate with travellers and if they will have impact in shaping the future of other airline credit cards offerings and loyalty programs.