How Etihad Guest Is Building India’s Next-Generation Loyalty Play

For much of the airline industry, loyalty programmes were built as extensions of flight schedules. The more you flew, the more you earned. Redemption followed, usually much later, and often with friction. That model held for decades. In India today, it is being quietly dismantled.

Etihad Guest, the loyalty programme of Etihad Airways, is among the few global airline programmes treating India not just as a growth market, but as a strategic laboratory for what loyalty must become next. With more than 13 million members globally and India now its second-largest membership base, the airline has begun reshaping Etihad Guest into a lifestyle-led ecosystem that reaches well beyond aviation.

In a conversation with Financial Express BrandWagon online, Mark Potter, Managing Director, Etihad Guest, underlines why the shift has become unavoidable. “The airline has grown significantly in India. We fly to 11 destinations with 185 flights a week. That is a very strong network. But the loyalty programme was still heavily dependent on Etihad flights alone for earning and redemption. Given the size and importance of India, that was a gap we needed to address.”

Moving Loyalty Into Everyday Life

The turning point came with Etihad Guest’s largest-ever partner expansion in the Indian market, bringing together banking, hospitality, e-commerce, food delivery and organised retail. Rather than positioning the move as a promotional push, Potter frames it as a structural recalibration.

“We asked ourselves a very basic question,” he says. “Where does the programme lack relevance in the daily life of an Indian consumer. The answer was clear. There were gaps in e-commerce, in quick commerce, in localised hotel stays and in physical retail. These are the categories where transactions actually happen every day.”

That assessment led to partnerships with BOBCARD (Bank of Baroda), The Postcard Hotel, Flipkart, Swiggy and Shoppers Stop. Collectively, they mark a shift away from episodic engagement to habitual interaction.

Potter says, “The programme has existed in India since our early days. This is not about bringing Etihad Guest into India. This is about making sure the proposition finally reflects how Indian consumers live and spend.”

Redefining the Economics of Miles

Perhaps the most telling signal of this shift is Etihad Guest’s two-way currency transfer partnership with Flipkart, allowing members to move value freely between SuperCoins and Etihad Guest Miles.

In traditional loyalty thinking, such flexibility was avoided.

“Five years ago, the idea of allowing currencies to move between programmes would have been very uncomfortable, there was always a focus on breakage and unredeemed miles. That is not how we think. We want members to use their miles. We want to remove friction, not create it,” adds Potter.

By allowing shopping-led rewards to convert into travel, and travel rewards to return to shopping, Etihad Guest is positioning miles as a flexible currency rather than a locked-in incentive.

Credit Cards as the Core Connector

At the centre of the ecosystem sits the Etihad Guest co-branded credit card with BOBCARD, Bank of Baroda’s credit card arm. Designed as a two-variant product, the card integrates accelerated earning, tier benefits and international transaction advantages.

But Potter insists the strategic role of the card goes far beyond features.

“The credit card becomes the connector, It sits in the wallet and touches every other partner relationship. It allows members to earn faster, double dip across partners and bring everything into one ecosystem,” he says.

Crucially, the programme avoids pushing incremental spending, “We are not asking members to change how they spend, we are saying that the spending you already do should finally be recognised,” adds Potter.

Rooting Premium Travel in Indian Luxury

While many airline loyalty programmes lean heavily on global hotel chains, Etihad Guest’s partnership with The Postcard Hotel reflects a deliberate focus on Indian-origin luxury.

“One of the things we were very clear about was working with homegrown brands. All five partners in this expansion are Indian brands. That localisation is important. Etihad Guest needs to feel relevant here, not transplanted,” Potter says.

Through the partnership, members earn miles and unlock benefits across The Postcard Hotel’s portfolio in India and the region, linking premium travel with destination-led hospitality. Etihad Guest members staying two or three nights at any Postcard property will earn 2,000 Miles, while those staying four nights or more will receive 4,000 Miles plus a complimentary night stay. 

Tackling Loyalty Fatigue With Differentiation

India is one of the most crowded loyalty markets globally, spanning airlines, banks, retailers and digital platforms. Potter acknowledges that fatigue exists, but believes it is driven by uniformity rather than oversupply.

Potter says, “Everybody has a programme today, but the problem is that many of them look the same. We were very clear that we did not want a generic earn-and-burn proposition.” 

That intent is visible in partnerships with Swiggy and Shoppers Stop, where Etihad Guest members receive immediate premium benefits rather than delayed rewards. Moreover, as a reward for their loyalty, existing Etihad Guest members will immediately benefit from six months complimentary Swiggy One membership, the country’s only membership programme offering benefits across food, quick commerce, and dining out. 

Additionally, Etihad Guest members will also soon be able to earn Miles on all spends across the Swiggy platform, rewarding members for everyday purchases that could quickly turn into a beautiful holiday to Abu Dhabi.

“Swiggy One and Shoppers Stop Platinum are not just about points,” Potter says. “They are about instant value. You feel the benefit immediately. That is what cuts through fatigue.”

Balancing Value and Aspiration

Indian consumers are often described as value-conscious, but Potter believes that framing misses half the story. “They are extremely aspirational. The desire to travel internationally, to experience premium cabins, to explore destinations like Abu Dhabi, Europe or the US is already there,” he says.

Etihad Guest’s strategy is to bring those aspirations closer by rewarding everyday behaviour.

He adds, “If you are shopping on Flipkart, ordering on Swiggy or spending at Shoppers Stop, you are already spending that money,“We are simply making sure that spend accelerates you towards experiences that feel special.”

Protecting Brand Equity in Loyalty

As loyalty programmes increasingly rely on discounts and cashbacks, Etihad Guest has chosen a different path.

“I do not believe that relevance comes from discounting,” Potter says. “Etihad is not a discount brand in this market, and Etihad Guest should never dilute that perception.”

Instead, the programme is being positioned as a brand-building platform, using partnerships and choice to reinforce premium positioning.

However, personalisation is one of the most overused terms in loyalty, but Potter insists it must be felt, not promised.

“In 2024, we made a fundamental change. We allowed members to choose what matters to them. Lounge access, baggage, home check-in, vouchers or miles. The choice is theirs,” he says. 

This approach, he believes, is the foundation of genuine differentiation. Potter adds, “The experience you have with Etihad should not feel disconnected from the experience you have with our partners. That is what we are working towards.”

Loyalty’s Next Chapter in India

Looking ahead, Potter expects loyalty programmes in India to evolve into fewer but deeper ecosystems.

“There was a time when people carried dozens of cards. That time is passing. What matters now is depth, relevance and quality,” he states.

For Etihad Guest, India will remain central to that evolution. “We will continue to grow and evolve here,” Potter says. “But always with partners who share our ambition and who help us meet the real needs of our members.”