Frequent Flyer Research Articles

From silver to platinum: The impact of frequent flier tier levels on air travellers’ behaviour

We estimate the switching costs created by tier levels, one of the main components of airline frequent flier programs, by exploiting discrete tier thresholds. We first demonstrate that travellers increase their demand to reach a higher tier level just before the end of the calendar year when tier levels are determined, but do not manipulate demand in earlier months. This allows for a novel fuzzy discontinuity approach to identify causal demand effects of higher tier levels, from which we derive the airline switching costs. While the lowest level creates only negligible switching costs, the switching costs associated with the highest tier level are in the range of 30%–41% of the price of a ticket, representing an important determinant of travel behaviour in airline markets. These results especially provide evidence of the use of tier levels to induce loyalty from high-frequency travellers for whom free flight awards alone would not create substantial switching costs.

FLYWISE AIRWAYS WEBSITE

Abstract— The FLYWISE Airways website is a user-centric platform designed to streamline the booking process and enhance the overall travel experience for passengers. With its intuitive interface and robust functionality, the website allows users to easily search for flights, compare fares, and make secure online bookings. In addition to booking flights, the website also provides valuable information about FLYWISE Airways’ services, fleet, and destinations. The website’s responsive design ensures a seamless experience across all devices, making it easy for passengers to access the information they need, whenever they need it. With its focus on user convenience and accessibility, the FLYWISE Airways website is poised to become the go-to platform for travelers seeking a hassle-free booking experience. The FLYWISE Airways website is designed with mobile responsiveness in mind, ensuring that passengers can access the website from any device, including smartphones and tablets. This ensures that passengers can easily book flights and access important information while on the go. Keywords – Flight booking, air travel, online reservations, flight search, compare fares, secure booking, flight information, manage bookings, seat selection, extra baggage, in-flight meals, frequent flyer program, mobile responsiveness, user-friendly interface.

No agency and responsibility for the privileged? Perceptions of climate action among high socioeconomic status citizens in the United Kingdom

Addressing climate change requires significant individual behaviour change, as well as deep societal transformations to dramatically reduce greenhouse gas emissions. Individuals with high socioeconomic status (SES; i.e., with relatively higher levels of wealth, income, and education) have an important part to play to deliver these changes. This is because they often have carbon-intense consumer lifestyles, but they also have increased power to address climate change via their other social roles, for example as investors, role models, organisational participants, and citizens. Therefore, the present study was designed to understand how high SES individuals perceive these roles and opportunities, in particular in their workplaces. We recruited 81 individuals in the United Kingdom with high subjective SES and high levels of education and income to take part in an online qualitative study. We performed reflexive thematic analysis and generated 5 main themes; (1) Shifting responsibility to others in the system, (2) Seeing oneself mainly as a consumer, (3) Failure to recognise power within upstream social roles, (4) Climate change is perceived as a distant threat and, (5) Climate action is a positive experience. These findings suggest that to unlock the transformative potential that high SES individuals can bring to climate change mitigation, targeted policy (e.g., progressive frequent flyer levies) and tailored education (e.g., on local and health impacts of climate change; on personal opportunities to support mitigation) is required.

Airline Market Risks and Management Discussion and Analysis (MD&A): A Thematic Study

This research endeavors to assess airline executive decision-making coping with critical crises during the pandemic by scrutinizing the Market Risks and Management Discussion and Analysis (MD&A) sections within the 10-K financial reports. This study delves into the quarterly financial reports (10-Q) of Delta Air Lines (DAL) spanning from the 1st quarter (Q1) of 2020 to the second quarter (Q2) of 2023 and discovered primary challenges and market risks that were of concern to top executives. To underscore the significance of top executives’ decision-making activities within a chosen airline, this research project explores significant discussions disclosed in the financial reports. The findings show “revenue”, “cost”, and “fleet” were three most discussed topics while “liquidity, asset, and payable accounts”, “failing cost-saving strategies and poor Return on Investment (ROI)”, “policy changes in ticket cancellation and frequent flyer program”, “failing new technology”, and “proprietary data security” emerged as the top five market risks during the COVID-19 pandemic. Executives responded to these challenges by implementing corresponding strategies aimed at ensuring sustainability, such as labor downsizing, reforms to retirement plans, flight frequency reduction, simplification of aging fleets, cancellation of aircraft orders, cost-reduction initiatives, and adjustments to routes and hubs, among other measures. Noticeably, frequent flyer loyalty program remained lucrative.

Brand awareness and its influence on repeat customers in the airline industry

India’s aviation industry is seeing growth, and the country is host to several domestic airline firms.In India, the domestic aviation industry is predominantly composed of private airlines, accounting for over 75% of the market, making it one of the aviation markets with the highest growth rates globally. Currently, there are 454 functioning airports in the country, out of which 16 are international airports. The aviation sector is projected to have a resurgence with an anticipated compound annual growth rate (CAGR) of 18% in 2011. The Civil Aviation Ministry’s current predictions indicate that increasing traffic movement and revenues—which climbed by about US$ 21.4 million in 2009—will enable India’s Airports Authority to create higher margins in 2009–2010. Acknowledging and. Recognizing and delivering high-quality service begins with knowing exactly what clients want. Service quality is one of the finest measures for assessing the opinions and expectations of clients. Customer performance within an organization determines customers satisfaction with services. Passenger happiness affects customer sovereignty. It is possible for customers to be really satisfied and still not be loyal, or vice versa. Companies need to have a deeper understanding of the relation between online behaviour and contentment in order to divide internet marketing tactics between programs that promote behavioural intention and happiness. The findings will benefit airline managers by enabling them to monitor and improve the quality of their workforce, improve customer service, and increase passenger satisfaction. In India, buying airline tickets again and again is rather usual, particularly for business or frequent visitors. Numerous domestic airlines in India have frequent flyer and loyalty programmes as a means of encouraging consumers to keep using them when making travel reservations. Furthermore, a lot of Indian travellers buy their flights using online travel agents (OTAs), which make it simple for consumers to compare options and costs across several airlines. To entice users to make additional reservations, these OTAs frequently provide cashback or discount incentives for recurring bookings. Furthermore, a lot of Indian airlines entice customers to buy tickets with them again and again by providing a range of promotional deals, discounts, and cashback incentives at different periods of the year. In general, Indians frequently buy plane tickets again and are influenced by loyalty programs, frequent flyer programs, discounts, cashback offers, and the ease of booking through online travel agencies.

Choice between FSCS and LCCS - Relative Importance of Corporate and Government Initiatives

With a modest start in 2003, Low-Cost Carriers (LCCs) have become a dominant player and the most preferred mode of air transport in India. As per the latest reports, the market share of LCCs had touched 82% during FY 2022. This type of progress could not have been achieved without proactive initiatives taken by both the Airline Management and the Government of India. This article tries to analyze various initiatives taken up at the corporate level and at the Government level to make air travel accessible and affordable to the general public. Five attributes under corporate initiatives and four attributes under government initiatives have been identified and analyzed through a survey collected from 300 passengers from Bengaluru, India. The data is analyzed using Analytic Hierarchy Process (AHP). The results show that the UDAN scheme – an initiative of the Government of India (GOI) is the most important attribute that passengers consider when choosing an air carrier. This is followed by Brand Image, Safety/ Reliability. Two more initiatives of the GOI namely De-regulation policies and Tariff Structure are the next two important attributes followed by Airfare. Advertising and Promotion, Infrastructure Development, and Frequent Flyer Program (FFP) are the least important attributes.

Full-Service Carrier (FSC) vs Low-Cost Carrier (LCC): Purchasing Decision-Making Process of Passengers

The demand for the aviation industry has grown as a result of the shift in people's travel preferences brought on by rising wealth and expanding trade in the world and in our nation. Air travel is now preferred due to state assistance, new airports, superior aircraft, and the relative drop in expenses. This study's main focus is on the consumer purchase patterns of two airline companies that operate in the very competitive aviation sector. Depending on whether the airline is a full-service carrier or a low-cost carrier, these variables change. The "Factors Affecting Airline Preferences Scale" was created and distributed to passengers of two airline organizations at Istanbul Sabiha Gökçen Airport (a full-service carrier (FSC) and a low-cost carrier (LCC) operating in Turkey) to assess the extent to which variables like airline reputation, advertising, frequent flyer programs, price, service quality, and digital marketing tools like websites, e-mails, Facebook, Twitter, Instagram, YouTube, and mobile applications have an impact on the process of ticket purchasing decision of passengers. It was shown that the passengers' purchasing decisions were influenced by reputation, service quality, frequent flyer programs, price, digital marketing initiatives, and advertisement. It was shown that depending on whether the airline is a full-service carrier or a low-cost carrier, the impact of these elements differs.

Airline Reservation and Flyer Management System

Airline reservation and flyer management system is a web-based application designed for a specific airline company. It provides a platform for frequent fliers to register and manage their flights, including the utilization of miles earned through the airline's frequent flyer program. The application allows frequent fliers to log in and input all the necessary details related to their travel within the airline company. The airline offers a range of domestic services to various locations, and users can easily search for available flights and book seats on their preferred flights. The payment for the bookings can be conveniently made online. Upon successful payment, users receive a ticket with a unique ticket number and comprehensive travel details. It is important to note that the airline company exclusively offers booking and ticketing services to individuals who have registered with their frequent flyer program. In case of any changes or cancellations, the system provides a ticket cancellation feature. Users can cancel their booked tickets, and this functionality also extends to travelers who are associated with a registered user. This ensures flexibility and convenience for all parties involved. Overall, the Magical travels streamlines the flight booking and management process for frequent fliers, while offering a secure and user-friendly interface for accessing and utilizing the airline's services.The website may utilize various technologies and frameworks, such as React, HTML, CSS, JavaScript, and server-side languages, to create a seamless and engaging user experience.

Tourism embraces blockchain towards the smart tourism era

Blockchain, also known as Distributed Ledger Technology (DLT), has attracted a considerable lot of attention from academics and industry professionals. When it comes to the tourism industry, the exploitation of blockchain technology could result in significant gains. Among the possible uses are digital identity management, tokenization of frequent flyer programs, accommodation, and transportation. After conducting a comprehensive review of the scientific literature published in this field over the past five years, we identify the most significant blockchain-enabled services and uses of this technology within the context of smart tourism. We analyze the benefits of blockchain technology for the travel industry, local economies, and tourists, laying the groundwork for future studies. Moreover, we present a novel context-aware mobile application that uses artificial intelligence and blockchain to create a hybrid cyber-smart tourist application.

Making airline coalition frequent-flyer programs profitable: An analytical investigation

This paper investigates the conditions for airline coalition frequent flyer program (FFP) to exist. A stylized economic model is proposed to analyze both stand-alone and coalition FFP. With the help of numerical analysis, we identify the profit-maximizing conditions for both types of FFP and recognize critical thresholds for a profitable coalition FFP. We find that a coalition FFP would not be profitable if the reward value were far less than the total price of airfare and partner product. In addition, the optimal reward of a coalition FFP will increase as the total price rise. Finally, coalition FFP is unlikely to be more socially efficient than stand-alone FFP. Based on the analytical results, we provide policy implications and highlight the importance of optimal rewards, partner price coordination and market supervision for the successful and profitable airline coalition FFP.

P476 TOLERATED SUSTAINED VENTRICULAR FIBRILLATION IN LVAD RECIPIENT: THE WALKING DEAD

Abstract A 73–year–old man comes to the cardiac surgery clinic, due to the onset of an arrhythmic storm. In 1999, the patient was diagnosed with dilated cardiomyopathy with finding of a pathogenic mutation of the MYH7 gene by NGS panel analysis. Because of severely reduced systolic function despite OMT and left conduction delay, he underwent CRT–D implant in class IA. The patient‘s course was characterized by multiple exacerbations and a worsening course of ventricular dysfunction (EF 20%), such as to configure a picture of advanced heart failure, INTERMACS III (frequent flyer). Approximately 6 months later, the patient was admitted with signs of hypoperfusion refractory to inotrope therapy and significant congestion. In consideration of age, frailty and irreversible renal dysfunction, the patient was excluded from the transplant list. Therefore, he was a candidate for mechanical support as destination therapy, through the implantation of the Heart Mate III. At admission, the patient was monitored with evidence of ventricular fibrillation (image 1) and relative hemodynamic stability. The vital parameters reported a BP of 90/76 mmHg, FC not evaluable and SpO2 of 80%. For this reason, in anesthesiological assistance, asynchronous external defibrillation (200 J) was performed with restoration of the pacing rhythm. The monitoring of the LVAD showed a series of alerts: a reduction of the Pump Flow and phases of reduction of the Pulse Index (image 2). Event monitoring of the CRT–D revealed that the patient developed an arrhythmic storm, with appropriate but ineffective several shocks. The 8 shocks were followed by the interruption of the device therapies, but the patient, despite the ventricular fibrillation, had preserved perfusion. Medical therapy was optimized (mexiletine add–on) and CRT–D was rescheduled. Conclusions The presence of LVAD ensures a satisfactory cardiac output during arrhythmias that would lead to hemodynamic compromise. For this reason it is possible to identify patients who autonomously come to our observation in "cardiac arrest".

Investigating Airline Service Quality from a Business Traveller Perspective through the Integration of the Kano Model and Importance–Satisfaction Analysis

This study uses the Kano model and importance–satisfaction analysis (ISA) to assess airline service quality by identifying the prioritised service quality attributes (SQA) for business travellers. The study aims to produce suggestions for airline executives on how to allocate resources in the most effective way to enhance the quality of service and increase customer satisfaction. A conceptual framework divides business travellers into four Clusters based on the behavioural variables of flight length and cabin class. For each Cluster, business traveller expectations for fourteen SQAs were assessed through using the Kano model while integrating the ISA. The empirical phase employs a 38-item questionnaire that was shared on various frequent flyer and business travel forums. Additionally, this study utilises an adapted qualitative questionnaire where four airline managers expressed their perceptions on how they think business travellers perceive the fourteen SQAs. The analysis reveals four categories, namely ‘concentrate here’, ‘keep up the good work’, ‘low priority’, and ‘possible overkill’, exhibiting the importance and satisfaction of the fourteen SQAs. Findings show that resource allocation was adequate on only five attributes out of fourteen. The analysis of the airline manager responses shows differences in their assessment when compared to business travellers for two tangible attributes.

Habitat–trait interactions that control response to climate change: North American ground beetles (Carabidae)

AbstractAimAs one of the most diverse and economically important families on Earth, ground beetles (Carabidae) are viewed as a key barometer of climate change. Recent meta‐analyses provide equivocal evidence on abundance changes of terrestrial insects. Generalizations from traits (e.g., body size, diets, flights) provide insights into understanding community responses, but syntheses for the diverse Carabidae have not yet emerged. We aim to determine how habitat and trait syndromes mediate risks from contemporary and future climate change on the Carabidae community.LocationNorth America.Time period2012–2100.Major taxa studiedGround beetles (Carabidae).MethodsWe synthesized the abundance and trait data for 136 species from the National Ecological Observatory Network (NEON) and additional raw data from studies across North America with remotely sensed habitat characteristics in a generalized joint attribute model. Combined Light Detection and RAnging (LiDAR) and hyperspectral imagery were used to derive habitat at a continental scale. We evaluated climate risks on the joint response of species and traits by expanding climate velocity to response velocity given habitat change.ResultsHabitat contributes more variations in species abundance and community‐weighted mean traits compared to climate. Across North America, grassland fliers benefit from open habitats in hot, dry climates. By contrast, large‐bodied, burrowing omnivores prefer warm‐wet climates beneath closed canopies. Species‐specific abundance changes predicted by the fitted model under future shared socioeconomic pathways (SSP) scenarios are controlled by climate interactions with habitat heterogeneity. For example, the mid‐size, non‐flier is projected to decline across much of the continent, but the magnitudes of declines are reduced or even reversed where canopies are open. Conversely, temperature dominates the response of the small, frequent flier Agonoleptus conjunctus, causing projected change to be more closely linked to regional temperature changes.Main conclusionsCarabidae community reorganization under climate change is being governed by climate–habitat interactions (CHI). Species‐specific responses to CHI are explained by trait syndromes. The fact that habitat mediates warming impacts has immediate application to critical habitat designation for carabid conservation.

The Effect of Airline Relationship Immersion on Brand Attachment and Relationship Persistence Intention in Korea – Focused on the Frequent Flyer Programs

The core of marketing strategies in the service industry is to increase customer retention rates as much as possible by increasing customer loyalty. In particular, due to the own nature of the aviation industry which is sensitive to external factors of the rapidly changing world, one of the important strategic goals to occupy a firm competitive advantage is securing regular customers such as "Loyal Customer." The purpose of this study is to find out not only the price competitiveness of airlines but also the influence among relationship commitment, brand attachment, and relationship persistence intention in order to survive the fierce competition in the airline industry. Based on that, it is intended to develop strategies that can be used to maintain existing customers and attract new customers to find ways to be more competitive for each airline. The questionnaire consisted of four factors: Frequent flyer programs, relationship immersion, brand attachment, and relationship persistence intention and the survey subjects were passengers using airlines. Statistical processing of the collected data was analyzed using the SPSS v. 25.0 statistical package program. It was found that the relationship immersion according to the frequent flyer programs affected both the love dimension and the solidarity dimension factors of brand attachment. In addition, it was found that both emotional immersion and computational immersion, which are sub-factors of relationship immersion, had a significant effect on relationship persistence intention. The detailed factors of the frequent flyer programs to improve the relationship immersion of airlines were identified and the factors affecting the relationship persistence intention were identified. Also, it was confirmed that relationship immersion was an essential factor to increase brand attachment and relationship persistence intention of customers to the airlines. Through this, this study would contribute to play a big role in developing strategies that can be used to maintain existing customers and attract new customers, and presenting a framework for utilizing existing customer relationship marketing. Key Words: Relationship immersion, relationship commitment, Brand attachment, relationship persistence intention, frequent flyer programs, emotional immersion, computational immersion

Loyalty programs, loyalty engagement and customer engagement with the company brand: Consumer-centric behavioral psychology insights from three industries

Firms make large investments in loyalty programs (LPs) to build customer relationships with customer loyalty as one of their primary goals. Despite the popularity of LPs, their effectiveness is questioned and the subject of academic debates in relation to outcomes such as profitability. Moreover, extant research has not investigated if customers engage with LPs through LP perceived value and how LP engagement improves LP loyalty, brand loyalty, and customer engagement (CE) with the company brand. This study examines, from a consumer-centric behavioral perspective, LP engagement (LPE) behavior, and how LPE behavior impacts brand and LP loyalty, as well as CE. We introduce LPE behavior, a relatively new concept, in the form of a multi-dimensional set of hierarchically-ordered dimensions. We show a differentiated view of the relationship between the antecedents of brand loyalty as well as LP loyalty and CE. External, convergent and discriminant validity are confirmed by testing our model with a representative sample (n = 593) of the U.S. LP population with participants being members of either a grocery retail chain, department store chain, or airline frequent flyer LP. We show that perceived LP value engages customers with LPs. Subsequently, LPE behavior improves LP loyalty and brand loyalty as well as CE with the company brand.

항공동맹의 브랜드 신뢰도가 의사결정 편의성, 브랜드 자산 및 구매의도에 미치는 영향

When purchasing airline tickets, consumers are confronted with numerous uncertainties. Airlines actively utilize brands to reduce consumers' opinions on this matter. The research model was presented in order to demonstrate that the brand credibility of the global airline alliance is a signal that reduces uncertainty in consumers' purchasing decisions and influences their purchase intentions. The relationship between brand credibility, decision convenience, brand equity, and purchase intention was validated using structural model analysis, and the indirect effects of brand credibility and decision convenience were validated using bootstrapping. First, brand credibility had a positive effect on brand equity by enhancing brand utility and demonstrated a positive relationship with decision convenience by reducing the effort and time spent by consumers during the purchasing process. Second, the brand credibility of the airline alliance did not have a direct impact on the purchase intentions of consumers. However, brand equity and decision convenience were found to have indirect effects. This study has academic value because it explains brand credibility in the context of brand alliance using signal theory. Even in brand alliances, brands' consistent and clear signals served to reduce consumer uncertainty. Moreover, joint promotional activities between the airline alliance and its member airlines will be a differentiating strategy for enhancing brand competitiveness in the market. Differentiated services in the market include marketing activities such as frequent flyer benefits and price discounts promoted by individual airlines, as well as the integrated frequent flyer benefits provided by airline alliances, the convenience of connecting flights, and their members' lounge use. It will be a strategy with the potential to enhance the cross-brand advantage.

In pursuit of progressive and effective climate policies: Comparing an air travel carbon tax and a frequent flyer levy

This paper investigates the trade-offs between progressivity and effectiveness for a carbon tax versus an ‘excessive consumption’ levy. To do this, we compare the distribution of consumer welfare impacts and environmental effectiveness of an air travel carbon tax and a frequent flyer levy. Results show that both policies have the potential to achieve substantial carbon mitigation with minimal impacts on consumer welfare. Nevertheless, compared with a carbon tax, a frequent flyer levy is more progressive and effective at reducing emissions – thus, there is no trade-off between progressivity and effectiveness by using an excessive consumption levy to mitigate air travel emissions. Furthermore, considering the pronounced growth in demand projected for air travel over the next 30 years, results show the frequent flyer levy will remain more progressive and effective over time. Although further research is needed to assess the trade-offs on the supply-side (e.g., protection of regular customers, dynamic efficiency) and related to implementation (e.g., data privacy, the role for revenue recycling), such an excessive consumption levy has the potential to be an equitable, effective and politically acceptable environmental policy for curbing carbon dioxide emissions. This is relevant not only for air travel but for other forms of consumption in which the affluent are responsible for a large share of demand and associated carbon emissions.

The effects of frequent flyer programs in the competition with high speed rail: A case study of air passenger preference in Japan

This study tried to evaluate the effects of Frequent Flyer Programs (FFPs) in competition with High Speed Rail (HSR) by conducting conjoint analysis, using data from our questionnaire surveys at Komatsu airport in Japan. The effects of FFPs, which were evaluated as passengers’ Marginal Willingness to Pay (MWTP) for flight mileage points, were compared with passengers that flew on the competing route with HSR, and those that flew on the non-competing route with HSR. We found that FFPs seem to be more effective at attracting not only FFP members on business, but also FFP members not on business, on the competitive route with HSR. However, the power of FFPs to increase customer loyalty would become weaker after the COVID-19 pandemic if we consider the negative impacts of COVID-19 on business travel demand. On the other hand, when we focus on the non-business passenger, after the pandemic, FFPs would still be effective at cultivating customer loyalty on the competitive route with HSR.

How socially just are taxes on air travel and ‘frequent flyer levies’?

Policies to reduce air travel demand, including in the tourism sector, are urgently required as air travel’s climate impact keeps growing while low-carbon aviation remains a distant perspective. Policy options include flat rate taxes per flight, taxes on flight miles or emissions, or frequent flyer levies, yet little is known about how their distributional impacts compare. This paper examines the distributional effects of various air travel tax options for the UK, informed by an analysis of the distribution of (frequent) flights and associated emissions over income and other social characteristics. We find that ‘frequent flights’ are even more unequally distributed than all flights and that all taxes on air travel are distributionally neutral or progressive. The most progressive option is a ‘frequent air miles tax’ based on both the number of flights and emissions. At the same time, some social groups like recent migrants are relatively likely to be ‘frequent flyers’ even on lower incomes. Overall however, our results show that taxing air travel is far less regressive than taxing home energy or motor fuels. Taxes on air travel, while often portrayed as unfair in public discourses, therefore raise fewer fairness concerns than other types of carbon taxes.

Investigating Gamification Effect of Frequent Flyer Program on Brand Loyalty in the Aviation Industry

The frequent-flyer program is a loyalty program offered by airlines, also credited as the pioneer of gamification in services. This study empirically investigated the gamification effect of frequent-flyer programs on air passengers’ brand loyalty. A conceptual model based on the gamification theory was suggested. A questionnaire-based survey method was used for data collection from domestic air passengers in India. Data were collected from 418 respondents selected using convenient purposive sampling, and 356 filled questionnaires were used for analysis. Covariance-based structural equation modeling was used for data analysis. The path analysis and mediation test supported that the FFP game-element was positively associated with the air passengers’ loyalty. The psychological and behavioral outcomes of the game element fully mediated the relationship between the game element and the loyalty of air passengers towards aviation companies. This research would be helpful to the aviation managers to plan policies for enhancing loyalty.