Frequent-flier programs as a determinant in the selection of preferred airlines by corporations

Abstract

Frequent-flier programs (FFPs) are used by airlines to generate loyalty and attract new customers. Research has shown that these programs significantly affect travelers’ choice of airlines. In the managed travel environment where corporations select preferred airlines based on various determinants, it remains unclear whether these programs play a role in the selection process. A conceptual model of factors influencing corporate airline selection was formulated, positioning FFPs as one of the variables that may play a role. Exploratory factor analysis was done to test the conceptual model with the results showing that FFPs form part of business travelers’ needs. Based on the results the conceptual model could be adjusted to provide the main factors and their related variables that influence corporate travel managers in selecting preferred airlines. It became evident that, within the boundaries of the study, frequent-flier programs were, in relation to other variables, generally not considered as important in the selection of a preferred airline by corporations.