THE IMPORTANCE OF FREQUENT FLYER PROGRAMS AS A BARRIER TO ENTRY INTO AIR TRAVEL MARKETS

This article analyzes the importance of frequent flyer programs as barriers to new airlines. The influence of frequent flyer programs in passengers choosing longer or more inconvenient routes to collect more miles is also examined. Some specific questions asked include: 1) What is the likelihood that the traveler chooses a particular airline because of holding membership in that airline's frequent flyer program?, 2) Is the likelihood different if the passenger holds memberships in several frequent flyer programs?, and, 3) Would the traveler maintain preference for the carrier its membership is with if a competitive airline offers an actual price or service advantage? The study identifies the extent to which loyalty to frequent flyer membership programs are likely to serve as barriers to entry for other carriers.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/oclc/31144651
• Corporate Authors:

  Association for Transportation Law, Logistics and Policy

  PMB 250
  3 Church Cir.
  Annapolis, MD  United States  21401-1933
• Authors:
  • Bruning, E
  • Rueda, V
• Publication Date: 2000-8

Language

• English

Media Info

• Features: Appendices; Figures; References;
• Pagination: p. 367-380
• Serial:
  • Journal of Transportation Law, Logistics and Policy
  • Volume: 67
  • Issue Number: 4
  • Publisher: Association for Transportation Law, Logistics and Policy
  • ISSN: 1078-5906
  • Serial URL: http://www.atlp.org/journal.html

Subject/Index Terms

• TRT Terms: Air travel; Airlines; Barriers to entry (Competition); Frequent flyer programs; Marketing; Passenger miles; Quality of service
• Subject Areas: Aviation;

Filing Info

• Accession Number: 00815401
• Record Type: Publication
• Files: TRIS
• Created Date: Aug 6 2001 12:00AM