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Designing Frequent Flyer Programs Effectively - a Market-Research- and Interview-Based Study for the German Aviation Sector

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Listed:
  • Mark Wever

Abstract

In the face of growing competitive pressure and the dilemma of revenue-cuts due to the Corona lock-down airlines have to question their marketing activities. Frequent Flyer Programs (FFP) of German airlines have to date been an important element of customer relationship marketing in the brand-airlines segment, but recently have been cut back due to doubts on their profitability. The study refers to a comprehensive review of empirical studies in FFP to classify design characteristics of international programs. Referring to this classification it analyses the design framework of Germany’s predominant Frequent Flyer program (Miles & More) in the form of a case study, and compares the approach to international standards. Five insider expert interviews are conducted to evaluate the effectiveness of the concept and derive development options to secure the sustainable effectiveness of the program in a changing aviation market. The study finds some adaptations to Miles & More indispensable to make the program future-proof. A comprehensive and convincing framework comprising status, monetary and service rewards is essential to ensure consumer attractiveness and continuity. The partner network has to be expanded globally to ensure the programs international attraction. Bonuses have to be amended to particularly address frequent and international flyers Considering this advice, Miles & More can become an important building block in a post-Corona airline marketing setup.

Suggested Citation

  • Mark Wever, 2023. "Designing Frequent Flyer Programs Effectively - a Market-Research- and Interview-Based Study for the German Aviation Sector," International Journal of Business and Management, Canadian Center of Science and Education, vol. 16(3), pages 1-58, April.
    • Handle: RePEc:ibn:ijbmjn:v:16:y:2023:i:3:p:58
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    References listed on IDEAS

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    1. repec:dau:papers:123456789/1603 is not listed on IDEAS
    2. Mimouni-Chaabane, Aîda & Volle, Pierre, 2010. "Perceived benefits of loyalty programs: Scale development and implications for relational strategies," Journal of Business Research, Elsevier, vol. 63(1), pages 32-37, January.
    3. Wang, Stephen W., 2014. "The moderating effects of involvement with respect to customer relationship management of the airline sector," Journal of Air Transport Management, Elsevier, vol. 35(C), pages 57-63.
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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