Airline Loyalty: The Financial Powerhouse at the Center of Airline Strategy
Airline Loyalty: The Financial Powerhouse at the Center of Airline Strategy
Skift Take
As major financial powerhouses and robust passenger engagement engines, airline loyalty programs are leveraging technology for hyper-personalisation, with a strong focus on engaging less frequent flyers.
Report Overview
Skift Research’s latest deep dive into the airline sector focuses on loyalty programs. These programs have become significant financial powerhouses, with some experts arguing that the value of an airline's loyalty program can even surpass that of the airline itself. This is partly because loyalty programs often demonstrate better growth and higher profit margins compared to the core airline business, while also generating steady cash flows.
This report examines why low-cost carriers have not achieved the same level of success as full-service airlines in developing effective loyalty programs. It examines whether there are strategies these carriers can adopt to create successful and engaging programs. With technology now at the forefront of changes in airline operations, the report also considers whether advancements in technology can enhance loyalty offerings or if airlines will continue relying on traditional "earn and burn" models.
What You'll Learn From This Report
- The financial and operational reasons why loyalty programs are becoming a key strategy for airlines' commercial success
- Why low-cost carriers have not experienced significant success with loyalty programs
- Insights from loyalty program operators at Cebu Pacific, Air Arabia, and Cathay Pacific.
- How hybrid low-cost carriers can develop effective loyalty programs
- The future of airline loyalty
