Flight Catering, Second Edition

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.
| 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...