003: Wheels Up on Airline Loyalty Programs

Around the block…

• Adidas: Announced ‘RESIDENCY by adidas’ - from /// Studio as an extension of Koren Blockchain Week. Long-term they will partner with creators to develop digital & physical items. Near-term, limited & open-edition NFTs will be available from two featured artists through Manifold this week (Adidas).

• Lufthansa Group: Launched a new Web3 loyalty program, which rewards Polygon NFTs to trip-goers who scan their boarding pass in-app. ‘Digital trading cards’ can be collected to unlock travel-themed rewards like flight upgrades & lounge access (UpTrip / Miles & More).

• Ethiad: Teased an expansion to its Web3 loyalty program, ‘Etihad Horizon Club’, launching later this year & powered by Arcube. Etihad has already released Polygon NFTs that offer similar rewards & status benefits to Lufthansa. Uniquely - they will allow NFT staking as a way for owners to earn miles (Yahoo! Finance).

• Ralph Lauren: Launched a digital store, The 888 House, in support of its new RL 888 handbag. The experience is powered by immersive shopping platform, Obsess, and can be accessed through their website - along with a custom Snapchat lens (Ralph Lauren).

What is…?

• Adidas /// Studio: Announced in January as the nameplate of Adidas’ Web3 efforts. The nameplate allows Adidas to expand beyond its successful ALTS brand and into ‘sister’ projects like RESIDENCY (Vogue Business).

• Limited vs Open Edition: Limited edition NFTs have a pre-defined volume in the collection (more exclusivity), whereas Open Edition has no fixed volume (mint as many as there is demand for).

• Arcube: Provider of end-to-end NFT services for brands including strategy, asset creation, tokenization, and loyalty-driven experiences (Arcube).

• NFT Staking: A mechanic where NFTs are ‘locked’ and cannot be transacted for a given period. This is typically done in exchange for rewards or benefits for the owner and is also a way to mitigate project volatility - helping to manage the volumes able to be transacted (Coinbase).

• Obsess: Empiria competitor who offers virtual stores & e-commerce solutions to brands. They have created over 250 experiences for brands including Corona, Mattel, Dison, etc. (Obsess).

Chain Reactions!

• Airlines leaning in: Interesting to see airlines make moves in the Web3-Loyalty space. Looking deeper, it makes sense that they are one of the industries leading the way; with customers already willing to go through hoops to earn miles and upgrades for their preferred airline, it may be an easier ask to onboard customers into their programs. The synergy of collecting passport stamps plays well with the idea of digital collectibles. Have no fear… your passport will expire, but your blockchain stamps will live on forever!