Core Elements of the Frequent Flyer Program

Abstract

De Boer provides an in-depth exploration of the core elements of the frequent flyer program (FFP), including the accrual of miles, redemption of awards, elite tiers, communications and promotions, and program policies. For each of the components, De Boer explains the strategies deployed, and trade-offs faced by FFP management. De Boer shows how airline loyalty strategy has changed over time, reflecting the changing economics of FFPs. Different ways to allocate seats for award redemption are evaluated, as well as the comprehensive tier recognition structures put in place by programs today. The chapter also includes a detailed review of member communications and addresses the challenge of running powerful promotions through smarter marketing. De Boer also offers an overview of existing expiry policies.