The Sky’s the Limit with IQ Protocol and Airline Mileage Points

The coronavirus pandemic has caused a severe impact on nearly all industries. The aviation sector in particular has taken a serious blow. The travel and hospitality industry is experiencing a severe decline in revenue worth US$500 billion, resulting in a US$1.2 trillion loss in economic output. These financial losses are putting large travel brands on the brink of bankruptcy.

As we wait to see whether airline companies survive this downturn, many people are wondering: What happens to all those mileage points if the airline goes bankrupt? For customers of these companies with heaps of mileage points, it can be concerning what might happen to their earned rewards.

Airlines must be ready to offer attractive services to customers when demand starts to pick back up. New ways for customers to earn and use mileage points will be crucial for global airline companies to compete.

Thankfully, airline companies can restructure their reward system to ensure that more customers will remain loyal, even amidst trying times, by adopting PARSIQ’s IQ Protocol. IQ Protocol is a decentralized SaaS protocol that allows service providers to provide a revolutionary reward business model.

✈️ Here’s how airlines can leverage IQ Protocol:

• Revolutionize the current airline mileage points system. Provide a circular economy for the mileage points by turning them into tokens that can be used for various services such as flight upgrades, complimentary flight service, and free rebooking. In addition, with IQ Protocol, airlines can now allow flyers to earn via a savings app. Instead of simply holding unused mileage points without returns, users can now earn passive income made possible by IQ Protocol’s DeFi lending system.
• Accept crypto payments. IQ Protocol allows airlines to accept crypto payments. Since airlines operate internationally, accepting cryptocurrencies can help promote global payments and not restrict customers to their country’s native currency or payment methods. Even the airline’s native tokens may be accepted as payment.
• Offer a subscription-based business model. IQ Protocol allows businesses to transform their current business into a subscription-based business model. This will enable customers to subscribe and hold a certain amount of token, which is equivalent to a specific price and can be used to buy flights. For example, instead of purchasing multiple standalone tickets throughout the year, customers can now subscribe to get a year’s worth of flights, which can be redeemable up to a certain number of flights, depending on how much their equivalent value is. For frequent flyers, subscribing to flight packages will offer better overall value than buying each flight individually.
  This is a win-win situation as airlines can earn more, especially when a customer is subscribed to the service but wasn’t able to redeem it at a particular month.

🧳 How IQ Protocol can benefit airline customers:

• Rent or purchase tokens to avail of upgrades and services. IQ Protocol allows customers to buy tokens that can help them get more upgrades or rewards. For example, If a customer wants to earn double the mileage rewards, they can buy or rent more tokens. This benefits customers who plan to fly a lot as they can effectively double mileage rewards by holding more tokens. Think of holding more tokens as a way to boost your mileage earning rate. Of course, the amount they pay to buy more tokens would be less than the accrued double mileage value.
• Earn money through a savings app. IQ Protocol allows customers who own tokens to earn passive income risk-free by depositing into the airline’s savings app. Yes, even airlines can take advantage of DeFi to earn passive yields, offered through the app. The returns are generated from customers lending their tokens to other customers or borrowers, who effectively rent the tokens. This is similar to traditional lending and borrowing with a novel twist powered by smart contracts. This works well for customers who have no plan of flying or redeeming their mileage token rewards in the foreseeable future.
• Get free upgrades and priority booking. Customers who hold a certain amount of tokens have the option to upgrade their flight tickets from economy to business class as an example, with a discount or even for free. The exact upgrade terms vary per airline, as it is up to the airline to decide the incentive rules. Customers who also hold a certain amount of tokens may get access to priority boarding or services.

IQ Protocol offers airlines and their customers endless possibilities by allowing the companies to enhance their mileage points system. This can help airlines stay afloat and increase customer loyalty. IQ Protocol, the revolutionary decentralized SaaS powered by blockchain smart contracts, offers much room for innovation for airline corporations to take advantage of.