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Most airlines still view their Frequent Flyer Programmes (FFP) primarily as cash cows, living on the value of its loyalty currency. Increasing customer frustration towards the schemes is a clear indicator that such views need to be enriched. Customers are no longer loyal to the brand but rather the currency of the schemes.
Ravindra Bhagwanani, Managing Director of FFP consultancy Global Flight, argues that a unilateral focus on the points trading aspect of FFPs is not appropriate anymore. Such an approach doesn’t leverage the schemes full potential. If executed properly the scheme should be able to generate multiple profits through the loyalty impact compared to the direct profits related to the currency.
Read the full analysis here.
