CAL Reports 200,000 FlyAll Users and Launches Retention Bonuses
CAL reports 200,000 users for its FlyAll club and introduces a $150 retention bonus, intensifying competition against El Al's Fly Card and Isracard.
The fierce competition among credit card companies for Israeli travelers is far from over. Four months after launching its FlyAll aviation club, CAL (Israel Credit Cards) reports that approximately 200,000 customers have already joined the new card, announcing an additional round of benefits designed to strengthen its position against El Al's Fly Card and Isracard. This time, unlike previous acquisition campaigns, the company is also attempting to retain already acquired customers with a $150 bonus.
According to CAL, the new benefit will be offered to 25,000 new joiners and 25,000 existing customers who did not benefit from previous promotions and register for the campaign. In both cases, receiving the benefit is contingent upon making card transactions with a cumulative volume of 15,000 NIS within three months—an average monthly spend of 5,000 NIS. Consequently, this is not an automatic gift for all 200,000 cardholders.
Alongside the new value proposition, a television campaign is launching starring stand-up comedian Matan Peretz and actress Gal Malka, poking fun at rival aviation clubs, primarily Fly Card. The advertisement contrasts "point people" who keep accumulating points with "line people," CAL customers who fly abroad more frequently.
The new figures published by CAL indicate rapid club expansion in a short period. Last June, less than two weeks after launch, the company reported 50,000 joiners, reaching around 130,000 by August. However, these figures are self-reported by the company, which does not detail how many joiners are entirely new customers versus former Fly Card holders who chose to remain with CAL.
The Shift Toward Customer Retention
This picture is particularly important given the company's starting point. Until the El Al partnership (Fly Card) was transferred to Isracard, CAL held approximately 550,000 Fly Card plastic cards. Therefore, while FlyAll's acquisition numbers are significant, they remain far below the operational volume the company maintained under the previous partnership. Furthermore, issued cards do not necessarily reflect actual usage volume or cardholder loyalty.
Recall that last March, El Al announced the transfer of the Fly Card club from CAL to Isracard, a move that shook the credit card market. CAL responded by establishing the FlyAll club in partnership with travel company Issta, allowing users to accumulate cashback on card purchases and redeem them on flights with various airlines, alongside hotels and other travel products.
During the launch, CAL invested roughly $8 million in acquisition benefits, including grants of up to $250 for early customers. The current decision to offer benefits to existing customers as well may signal a shift in competition focus toward encouraging ongoing card utilization rather than purely rapid acquisition.
Additional Perks and Temporary Conditions
Alongside the $150 gift, CAL is now offering double accrual on purchases made on Thursdays via the FlyAll platform—at a rate of 2% on the standard card and 2.4% on the premium card. This benefit is limited to platform purchases rather than doubling accrual across all card transactions. Additionally, premium customers are offered ten days of free overseas travel insurance for a parent and child, alongside first-year annual fee waivers under specific conditions.
Here too, some benefits remain temporary. According to the conditions presented by CAL at the club's launch, standard purchase cashback stands at 1% in the first year, dropping to 0.75% from the second year onward. In the premium track, cashback drops from 1.2% to 1%. Furthermore, accumulated benefits are redeemable exclusively through the FlyAll platform, meaning customer value depends heavily on the flight and hotel prices offered there.
Legal and Advertising Battles
Competition between the two clubs has also spilled over into legal and advertising arenas in recent months. Last July, after El Al and Isracard raised objections against comparisons presented in CAL's FlyAll campaign, the Second Authority demanded the removal of certain messages over misleading concerns. The authority later retracted a central part of its ruling, permitting the comparison subject to prominent disclaimers regarding calculation methods and benefit limitations.
The core difference between the clubs remains: Fly Card offers points and diamond accrual in El Al's Matmid frequent flyer club, whereas FlyAll offers accrual redeemable across diverse airlines and hotels. Longtime Fly Card customers switching to FlyAll may continue using their existing CAL card, but cease earning El Al Matmid points and diamonds on new transactions.
Noya Persol, head of marketing and product development at CAL, stated that "the new value proposition was built upon the understanding that consumers seek meaningful benefits even after joining a club."
