Strategy in Airline Loyalty Frequent Flyer Programs
This book offers the first comprehensive exploration of frequent flyer programs. By combining academic research with extensive insights and examples from the actual business world, it explores the key drivers and strategies of airline loyalty marketing to
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STRATEGY IN AIRLINE LOYALTY Frequent Flyer Programs
Strategy in Airline Loyalty
Evert R. de Boer
Strategy in Airline Loyalty Frequent Flyer Programs
Evert R. de Boer FFP Investment & Advisory Pte. Ltd. Singapore, Singapore
ISBN 978-3-319-62599-7 ISBN 978-3-319-62600-0 (eBook) https://doi.org/10.1007/978-3-319-62600-0 Library of Congress Control Number: 2017955036 © The Editor(s) (if applicable) and The Author(s) 2018 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. Cover illustration: Yasuhide Fumoto Printed on acid-free paper This Palgrave Macmillan imprint is published by Springer Nature The registered company is Springer International Publishing AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland
for Olivia and Luc
Foreword I
Airline executives are clearly aware of the forces of disruption and the need for transformation based on not only what is happening in a wide array of business sectors (technology, entertainment, retail, and so forth) but also within the broader travel sector, for example, the hospitality sector and the air taxi sector. As such, managers at different airlines are working on different levels of transformation based on their own actual and perceived situations as well as the resources available to them. Based on my observations, however, the transformational initiatives taken so far have tended to be at the incremental level and related to enhancing the value of existing physical products. While these incremental improvements are clearly beneficial and are in the right direction for customers and for the profitability of airlines, they are not creating anything that is radically different. The situation is best put in perspective by Peter Thiel, the author of the book, Zero to One. Many companies, according to Thiel, develop products or services that take “the world from
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