Abstract
This paper describes three basic models of frequent flyer programs offered by airlines. Based on the definitions of these models an analysis of airline loyalty programs offered by European carriers was performed. The paper contains conclusions regarding the evolution of frequent flyer programs in Europe. The development process was assessed and prospective advances were identified.
Highlights
Airlines that operate in developed markets face fierce competition, which sometimes may be classified as hypercompetition
Frequent flyer programmes (FFPs) have been created to allow frequent flyers accumulate points for their flights and – after they have earned enough of such points – redeem them for air tickets
The study was conducted based on desk studies and the analysis of frequent flyer programmes offered by European airlines
Summary
Airlines that operate in developed markets face fierce competition, which sometimes may be classified as hypercompetition This makes it necessary for airlines to seek revenue in many ways, one of which is through building passenger loyalty. Studies suggest that the availability of a loyalty programme and perks linked with it are among the main reasons of choosing a particular airline [4]. This impact is most probably smaller for low-cost airlines, who offer classic frequent flyer programmes much more rarely and passenger choices in their case are driven mainly by low price of their air tickets. The study was conducted based on desk studies and the analysis of frequent flyer programmes offered by European airlines
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