Frequent Flyer Program: a case study of China airline's marketing initiative—Dynasty Flyer Program

Abstract

A common marketing technique widely adopted in the airline industry, Frequent Flyer Program (FFPs), was investigated. The objectives of the study are to: (1) illustrate the role of FFPs in the airline industry; and (2) determine the reasons for the utilization of FFPs by airlines using China Airlines as a case study. The fundamental rationale for utilizing FFPs as a marketing technique was identified and examined through an extensive literature review. A questionnaire specifically developed for this study was used to gather data along with interviews of selected executives. The factors affecting the success and/or failure of the FFPs from the viewpoints of both carriers and passengers, the role of FFP partners, economic implications of the FFPs and the role of technology for effective implementation of FFPs are discussed. The results clearly indicate the importance of FFPs as an effective marketing technique in the airline industry with positive implications for the financial performance of the carriers involved and their strategic alliance partners.