Customer Loyalty in the Airline Business: Towards a Blueprint for Valuable, Relevant and Differentiating Loyalty Programs

by Brian Goehring, Anand Janardhan and Maureen Stancik Boyce

Customer loyalty programs in the airline business have suffered as airlines have been hit with multiple challenges over the past few years – bankruptcies, increasing fuel prices, an increasing number of competitors and deteriorating customer satisfaction. As a result, the industry risks further commoditization, while other industries continue to innovate. Many travel customers feel trapped, remaining loyal primarily to avoid losing status and accumulated rewards.