Singapore Airlines focuses more on e-commerce through Kris +, the Pelago website – Health Guild News

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The iconic Singapore Girl greets us at the passenger entrance of Singapore Airlines (SIA) flights; This is an experience that many have lost for almost two years.

The pandemic continues to grow and a safe reopening of our borders has proven to be tougher than we thought.

Last month, SIA said its net loss of three months completed in June was A $ 409.2 million, although an improvement over last year’s US $ 1.1 billion as border and travel restrictions remained unchanged.

Reducing net loss may seem like a respite for the group and investors, but the aerospace industry’s outlook remains bleak due to recent virus outbreaks in the region. For example, Covid-19’s “Delta Variant” has proven to be nearly twice as transmissible as the original Covid-19 strain and has caused many of Singapore’s border reopening plans to be put on hold.

Image credit: Singapore Airlines

Although most of its fleet is ashore, SIA has not been a sitting duck. In the last year and a half, it has developed many new initiatives, with many aimed at e-commerce and the Internet economy. These include the Kris + payment wallet and the Pelago activity booking platform.

The new business verticals complement SIA’s main operations. For example, KrisFlyer miles can be used to pay for the services of the new Kris + digital wallet.

Launched in October last year, SIA’s investment in Kris + is part of the company’s ongoing strategy to drive non-air revenue streams in the coming years.

Another Internet product, Pelago, was officially launched in June this year and sells holiday experiences in Singapore. It is both an online magazine and a booking portal that publishes articles on suggested activities in a destination city (such as a craft beer tour) and allows travelers to book activity spaces.

Let’s take a look at these offerings and look at how SIA is adapting to this new normalcy thanks to its push for non-aviation companies.

What is Kris +

Kris + wants to be a unique platform that offers paid services, lifestyle and reward for customers. Kris + was built with the airline’s existing KrisPay app, which is a digital blockchain-based airline loyalty portfolio.

KrisPay was launched in 2018 and aimed to give customers the option to use the airline’s KrisFlyer loyalty program thousands to buy everyday items. It also offers customers the option to earn miles.

The Kris + app is another development of KrisPay, as it uses blockchain technology to easily incorporate new partners and reconcile payments. The advantages of using blockchain technology include reduced cost and increased efficiency.

Image credit: Shutterstock

It’s also easy for customers to convert their KrisFlyer air miles to invest in purchases at partner outlets through simple point-of-sale transactions. Because the blockchain is immutable and permanent, there is also an ease to manage mileage-based transactions without worrying about mistakes.

Kris + allows SIA to customize offers to its customers based on location and interest. The articles indicate that he has Kris + more than 175 partners with over 650 outlets in Singapore.

The app has been downloaded more than 130,000 times in the App Store (for iOS) and the Play Store on Google Play (for Android).

How to use Kris +

Users can use the Kris + app on food joints, such as Polar Puffs and Gong Cha bubble tea, to offset their purchases with KrisFlyer miles.

Miles earned with daily expenses can also be used to pay for purchases and refunds and discounts.

Image Credit: Mostly Miles

SIA has revealed that it plans to upgrade the Kris + app with other in-app payment options, which will allow users to earn more miles simultaneously with each purchase.

Traders can join to take advantage of the 4.7 million SIA KrisFlyer base. It is expected that more and more partners will be gradually incorporated in the coming months.

Kris + ia is also aimed at users who do not travel frequently to join the KrisFlyer program, which in turn will expand the firm’s reach to new users who may consider flying with the airline the next time they borders reopen.

The Kris + ecosystem, which has been created to improve customer-merchant relationships, is expected to foster the growth of the power of the KrisFlyer frequent flyer business and expand brand attractiveness and recognition.

The app has also been released overseas. In February, it was launched in India and is currently available at over 1,500 outlets across the country.

Pelago activity platform

Following a beta product launch in October 2020 and a continued iteration of the product, Pelago was officially launched in Singapore in June of this year. The launch of the digital e-commerce subsidiary Pelago was done without much effort.

In a investor call in november, SIA CEO Goh Choon Phong described Pelago as “a new business that has been created within SIA” with the goal of “extending the SIA experience from heaven to earth.”

Image credit: Singapore Airlines

The formation of SIA’s e-commerce subsidiaries reflects a broader trend of airlines trying to use their brands and customer bases to expand into the online sale of other products and services.

Pelago also adapts to SIA’s broader pattern dedicated to e-commerce. For some time now, the airline has been calling for the use of its KrisFlyer frequent flyer program as a way to buy non-flying products.

The new subsidiary is said to have a workforce of 50 people. The brand offers more than 200 experiences to users, such as pottery making workshops or being a beekeeper.

What can I do with Pelago?

Consumers can use and earn miles on KrisFlyer by purchasing activities through Pelago.

Pelago is currently focused on Singapore, where visitors can book anything from a $ 40 beer sampling experience to a two-hour SIA flight simulator session for $ 699. Other destinations in Asia Pacific are ready.

Image Credit: Mostly Miles

Pelago argues that they offer competitive prices, with a section dedicated to experiences available for less than € 50.

To date, Pelago only markets experiences in Singapore, however intends to grow abroad. As trips gradually normalize, it hopes to offer unique and selected experiences to the destinations to which consumers with SIA travel on the platform.

Image credit: Superadrianme

An integration of the Kris + app with Pelago seems likely, as the former is used to pay for purchases and meals, while the latter offers extensive services for activities.

Other airlines do the same

SIA’s efforts are not unique to the aerospace industry.

In October, Announces the AirAsia Group he “successfully pivoted” the airline into a digital, life-anchored travel company. AirAsia’s digital arm bought Gojek’s Thailand operations through the app, which valued AirAsia’s fledgling superapp at $ 1 billion.

Image credit: airasia

In Japan, ANA Group has been working since March to launch a mileage-based app ANA X only for the Japanese market. He said he plans ensure future growth strengthening its non-aeronautical business.

“We try to move away only from the aviation business, expanding non-aviation revenues into a super app that covers not only out-of-the-ordinary services, such as flights or travel, but also ordinary living services,” ANA X president, Shinichi Inoue had said al press conference.

There is no clear sky ahead for the aerospace industry

The growing pace of vaccination exercises across the country provides hope for a further recovery in international demand for air travel. In Singapore, the mass vaccination exercise has been reached 80 percent of the population.

However, the risk of new variants and new waves of Covid-19 infections in key markets remains a concern.

A la recent earnings announcement, SIA said the recovery trajectory will depend on government regulations, vaccination rates and the risk profile of individual regulators.

Image credit: Bloomberg

“Continuously innovating and improving our product and service offerings continues to be critical to our brand promise,” SIA said.

The SIA Group’s transformation program aims to promote digital leadership and excellence in products and services, while improving safety and health measures throughout the end-to-end travel journey. This will ensure that customers continue to have a world-class experience when they fly with us in the new normal, ”said SIA.

The group will also actively pursue new revenue growth engines, as well as initiatives to achieve a more competitive cost base to ensure its financial sustainability.

SIA added that it will remain agile and flexible during this time and will be alert to any possible revenue and growth opportunities that may arise, while strongly supporting all efforts to facilitate the safe resumption of international passenger travel.

Featured Image Credit: Bloomberg, Singapore Airlines





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