Flight Catering, Second Edition

Frequent Flier Programmes

One of the most important marketing developments in recent times has been the implementation of frequent flier programme (FFP) campaigns. First introduced by American Airlines, these schemes are based upon the objective of creating customer loyalty. While many believe the schemes are popular due to the benefit of acquiring free flight miles, it is found the schemes have much broader appeal for the traveller. In contrast many companies would like to have them discontinued. This is because the FFP schemes often conflict with company policy on the purchase of air travel as they do not always represent the most competitively priced fare. Table 3.6 indicates the different reasons which have led to the success of these schemes.

Table 3.6: Traveller's rating of frequent flyer scheme features

Benefits

1999

1993

Mileage points for free air travel

90%

55%

Flight upgrade possibilities

85%

46%

Priority on waitlist for seat availability

85%

72%

Priority check-in

85%

Airport lounges available

80%

48%

Recognition of status as a frequent flyer business traveller

78%

36%

Privileged VIP status with partner organisations

70%

Points from other schemes

25%

Luggage tracing

25%

Other rewards

12%

Insurance schemes

12%

Newsletters

3%

Source: Official Airline Guide, 1993, 1999

Airline operations have been affected by many factors in recent years. Statutory, economic and consumer changes have altered the air travel market-place and made it even more competitive. This has led to industry changes in composition and structure due to the...

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