It’s this success that left me perplexed — why would airlines continually devalue their frequent flyer programs? These are highly profitable multi-billion dollar businesses. Yet each cut risks undermining that business. Now this very warning comes from inside the industry.
Loyalty program executives — and their airline bosses — need to realize just what’s at stake: “As more full-service airline loyalty programs strip away benefits, devalue the currency and make it more challenging to earn meaningful rewards, the cracks in the dam will continue to grow, more rapidly, until one day the game will be over and full-service airline loyalty programs, and their billions in revenues – begin to wash away.”