Travelers and businesses in Hawaii are bracing for significant changes to Hawaiian Airlines' loyalty program, HawaiianMiles. Announced with little fanfare, the adjustments will see increased award prices, potentially impacting the travel budgets of residents and the operational costs of businesses that rely on employee travel. Key airline and shopping partners are also slated to disappear after June 30th, as the program moves toward full integration with Alaska Airlines' Mileage Plan. This shift could alter consumer behavior and the strategies of local businesses that have leveraged HawaiianMiles for customer acquisition or employee incentives.
The modifications to HawaiianMiles, first reported by Beat of Hawaii, include a substantial increase in the number of miles needed for some award flights, with some potentially reaching 250,000 miles. This increase is especially relevant for businesses that frequently send employees on inter-island or international travel. Furthermore, the loss of partners will necessitate adjustments in how businesses and customers accrue and redeem miles, potentially affecting partnerships and marketing campaigns dependent on the program.
For Hawaii's travel industry, these changes present both challenges and opportunities. The increased cost of award travel might influence the choices of visitors, potentially prompting them to look at alternative airlines or adjust their travel plans. However, as pointed out by Forbes' recent analysis, the merger with Alaska Airlines, and the subsequent changes to HawaiianMiles, may create new opportunities for strategic partnerships and innovation. Businesses may need to reassess their loyalty program strategies, potentially shifting toward co-branded credit card offers or other incentives to retain customer loyalty.
Moreover, reduced access to certain partner airlines and shopping options may have a downstream effect on local businesses. Businesses involved in providing goods and services for the HawaiianMiles program may have to look for new partnership opportunities, creating a ripple effect throughout the local economy. This shift highlights the importance of adaptable business strategies for Hawaii-based companies in a dynamic market. Considering these changes, Hawaii's tourism stakeholders should closely monitor the evolution of HawaiianMiles and be prepared to adapt to changes in customer behavior and travel patterns.
