Abstract
De Boer identifies the relevant factors that will help shape the future of frequent flyer programs (FFPs). Firstly, De Boer confirms that ample room for growth remains, and offers five growth strategies that can be applied to FFPs with varying levels of maturity. Secondly, De Boer identifies the potential headwinds for FFPs—and outlines the impact of each hurdle. Thirdly, De Boer reviews the changing airline environment—and how this will impact the FFP. Lastly, De Boer outlines four possible scenarios for the long-term future that will impact the FFP. The scenarios are the end of distressed inventory, the rise of the super-informed consumer, the super-fungible loyalty currency, and the end airline ownership restrictions. For each scenario, De Boer identifies the interplay with the FFP.
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Notes
- 1.
In 2011 Palamon Capital Partners sold its stake in Loyalty Partner to American Express, at a total enterprise value of approximately EUR 500 (Palamon Capital Partners n.d.).
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de Boer, E.R. (2018). Future of the Frequent Flyer Program. In: Strategy in Airline Loyalty. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-62600-0_9
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