Frequent flyer programmes

Sveinn Vidar Gudmundsson and Evert de Boer

A chapter in Elgar Encyclopedia of Transport and Society, 2025, pp 164-165 from Edward Elgar Publishing

Abstract: Frequent flyer programmes (FFPs) have evolved since the late 1970s, from simple mile accrual systems based on distance flown to complex structures with tiered memberships benefiting airlines and passengers. Originally aimed at rewarding loyal customers, these programmes now offer extensive rewards, ranging from free flights and upgrades to partnerships with hotels and retailers. Members earn miles through various means, including flights and credit card spending, which can be redeemed for various services and products. With members contributing significantly to airline revenues, recent trends emphasise customisation and the increasing standalone value of these loyalty schemes despite challenges like complexity and reward devaluation.

Keywords: Loyalty programmes; Airline alliances; Reward miles; Membership tiers; Redemption options; FFP evolution (search for similar items in EconPapers)
Date: 2025
ISBN: 9781035330515
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