Rethinking Airline Loyalty: A Shift Towards Fairer Rewards

By Ivan PetrenkoMar 26, 2024 19:35 PMNews
Share:
Two hands exchanging a card high above a cityscape seen through a glass barrier
Two hands exchanging a card high above a cityscape seen through a glass barrier. Source: unsplash

In an interesting turn of events, the airline industry is reevaluating its loyalty programs, moving away from a focus purely on how much passengers spend. According to ViewFromTheWing, this change is inspired by Delta Air Lines' decision a decade ago to reward travelers based on the price of their tickets, a move that was quickly adopted by other airlines, thinking it was a sure path to success. However, it's becoming clear that this one-size-fits-all strategy isn't working for everyone.

Delta managed to make its program work due to its strong market presence, but not all airlines are in the same position. For example, rewarding a traveler the same amount for a $400 short domestic flight and a $400 long international flight doesn't quite add up. The industry is learning that it's more beneficial to encourage passengers to choose them for all their travel needs, including high-margin services like seat upgrades, rather than just rewarding them for spending more.

Urban Leopard Ventures, a consulting firm, has been at the forefront of advocating for a more balanced approach, helping airlines to develop loyalty programs that genuinely align with both customer value and profitability. Their experience suggests that transitioning to these new models is complex but necessary for maintaining customer satisfaction and loyalty.

As airlines navigate these changes, the focus is shifting towards creating loyalty programs that reward passengers more equitably, ensuring that every dollar spent is recognized, and encouraging a more loyal customer base in the increasingly competitive skies.

Top Articles
Discover the Best Restaurants in San Jose: Must-Try Spots

Discover the Best Restaurants in San Jose: Must-Try Spots

Dec 29, 2024 23:49 PM
Explore the Best Shopping Spots in San Francisco

Explore the Best Shopping Spots in San Francisco

Dec 28, 2024 23:14 PM

Explore the Best Tide Pools in San Diego

Dec 27, 2024 22:53 PM

Uncover The Best Museums in San Francisco You Must Visit

Dec 15, 2024 23:30 PM
More News
View from an airport lounge showing SWISS planes parked on the tarmac during sunset, with passengers silhouetted inside the terminal

SWISS Now Accepts TWINT Payments

Jan 21, 2025 12:32 PM
AirAsia wing view from a plane flying above a coastline under a blue sky

Santan Brings Affordable Dining Options to AirAsia Flights

Jan 21, 2025 06:31 AM

UK Tourism Faces Critical Challenges

Jan 21, 2025 00:30 AM

Severe Weather Threatens Travel Plans

Jan 20, 2025 18:31 PM
A Condor Airlines plane taking off from a runway on a clear day

Condor Unveils Expanded Routes for Summer Two Thousand Twenty-Five

Jan 20, 2025 12:30 PM
Tail fins of airplanes featuring UK flag design

UK ETA Fee Increase Sparks Concerns

Jan 20, 2025 06:34 AM
Emirates airplane flying against a cloudy sky

Emirates Expands Vegan Options for Travelers

Jan 20, 2025 00:33 AM
A tranquil lake in the Lake District at sunset, surrounded by rolling hills and reflected in still waters

UNESCO Celebrates Eight Decades of Preservation

Jan 19, 2025 18:32 PM
A red AirAsia aircraft ascending against a blue sky with clouds

New Opportunity For Travelers: AirAsia MOVE Partners with SriLankan Airlines

Jan 19, 2025 12:31 PM

Qatar Airways to Reconnect Travelers with Malta

Jan 19, 2025 06:30 AM

Improved Customs Efficiency in Mauritania Promises Smoother Travel

Jan 19, 2025 00:33 AM
A red car parked near an airport runway with an airplane landing overhead on a sunny day

Air Europa Introduces Car Rental Integration

Jan 18, 2025 18:32 PM
A traditional Indian meal served with papad, chutneys, and a pressure-cooked curry, showcasing vibrant and rich flavors

European Union Showcases Culinary Excellence at SIAL India Twenty Twenty-Four

Jan 18, 2025 12:31 PM
A Ryanair plane landing at an airport, with clear skies and a terminal building in the background

Lublin Gains Fresh Travel Connections with Barcelona Route

Jan 18, 2025 09:30 AM
A SWISS aircraft taking off from Zurich Airport on a clear day

Airlines Resume Tel Aviv Flights Amid Regional Changes

Jan 18, 2025 00:35 AM

Eddie Aikau Invitational: A Unique Surfing Event for Travelers

Jan 17, 2025 20:34 PM

VisitBritain Showcases the UK to Global Travel Buyers

Jan 17, 2025 16:33 PM
Sunset view over railway tracks at a train station in Italy

Seamless Travel: Italy-Slovenia Rail Project

Jan 17, 2025 12:32 PM
A yellow and black Avanti West Coast train at a station platform, surrounded by tracks and infrastructure

Temporary Halt to Avanti Strikes Brings Hope for Travelers

Jan 17, 2025 08:31 AM
A ski lift surrounded by snow-covered trees in a serene mountain setting

Manchester Airport Expands Ski Travel Options

Jan 17, 2025 04:30 AM
A Air Montenegro airplane flying high in the clear blue sky

Air Montenegro Offers Affordable Travel for Youth

Jan 17, 2025 00:35 AM
Interior view of a busy train station with modern trains, large iron beams, and dim lighting

Major Rail Discounts Offered for Anniversary in England

Jan 16, 2025 20:34 PM

The Rise of Mindful Walking in Travel

Jan 16, 2025 18:00 PM

Vietjet’s New Routes Unlock Easier Access to China

Jan 16, 2025 16:33 PM
An Iberia airplane on the runway at an airport

Seamless Travel: Iberia Revamps Madrid-Barcelona Air Shuttle

Jan 16, 2025 12:32 PM
A winding coastal path along green cliffs overlooking the sea under a cloudy sky

Discover the Allure of the South West Coast Path

Jan 16, 2025 08:31 AM