JetBlue Airlines 2010 Annual Report Download - page 16

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Marketing and Distribution
Our marketing objectives are to attract new customers to our brand and give our current customers
reasons to come back to us time and time again. Our key value proposition and marketing message is that
competitive fares and quality air travel need not be mutually exclusive. Our competitive fares, high quality
product and outstanding customer service create the overall JetBlue Experience that we believe is unique in
the domestic airline industry.
We market our services through advertising and promotions in newspapers, magazines, television, radio,
through the internet, outdoor billboards, and through targeted public relations and promotions. We engage in
large multi-market programs, as well as many local events and sponsorships, and mobile marketing programs.
Our targeted public and community relations efforts promote brand awareness and complement our strong
word-of-mouth channel.
During 2010 we implemented a new integrated customer service system, which includes a reservations
system, website, revenue management system, revenue accounting system, and a customer loyalty management
system among others. The integrated system has enabled us to increase our capabilities including growing our
current business, providing for more commercial partnerships and allowing us to attract more business
customers.
Our primary distribution channel is through our website, www.jetblue.com, our lowest cost channel that is
also designed to ensure our customers have as pleasant an experience booking their travel as they do in the air.
Our participation in global distribution systems, or GDSs, supports our growth in the corporate market, as
business customers are more likely to book through a travel agency or booking product that utilizes the GDS
platform. While the cost of sales through this channel is higher than through our website, the average fare
purchased through this channel generally covers the increased distribution costs. We currently participate in
four major GDSs (Sabre, Galileo, Worldspan and Amadeus) and four major online travel agents, or OTAs
(Expedia, Travelocity, Orbitz, and Priceline).
We sell vacation packages through JetBlue Getaways, a one-stop, value-priced vacation website designed
to meet customers’ demand for self-directed packaged travel planning. Getaways packages offer competitive
fares for air travel on JetBlue and a selection of JetBlue-recommended hotels and resorts, car rentals and
attractions. We also offer a la carte hotel and car rental reservations through our website.
Customer Loyalty Program
In November 2009, we launched an improved version of JetBlue’s customer loyalty program, TrueBlue.
TrueBlue is an online program designed to reward and recognize our most loyal customers. The program
offers incentives to increase members’ travel on JetBlue. TrueBlue members earn points for each one-way
flight flown based on the value paid for the flight. Member accounts accumulate points, which do not expire
as long as new points are earned at least once in a 12 month period. Redemption of points for a one-way
flight can begin once a member attains as few as 5,000 points. There are no black-out dates or seat restrictions
in the improved TrueBlue program and any JetBlue destination can be booked if the member has enough
points to exchange for the value of an open seat. However, the number of points needed to acquire travel is
variable based on market conditions.
The number of travel segments flown during 2010 using TrueBlue points was approximately 600,000,
representing 3% of our total revenue passenger miles. Due to the structure of the program and low level of
redemptions as a percentage of total travel, the displacement of revenue passengers by passengers using
TrueBlue awards has been minimal to date. However, we expect redemptions to grow as a result of the
program enhancements rolled out in 2009.
We have an agreement with American Express under which it issues co-branded credit cards allowing
JetBlue cardmembers to earn TrueBlue points. We also have an agreement with American Express allowing its
cardholders to convert their Membership Rewards points into TrueBlue points. Additionally, we have
agreements with other loyalty partners which allow their customers to earn TrueBlue points through
participation in the partners’ programs. We intend to pursue other loyalty partnerships in the future.
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