Frequent Flyer Programs for European Low-Cost Airlines: Prospect, Risks and Implementation Guidelines

Frequent flyer programs (FFPs) are now part of a standard product and service of most air travel. This paper examines and analyzes different aspects of implementing FFPs at European low cost airlines (LCAs). The focus of this study is on the following questions: Why most European LCAs still do not offer FFPs to create customer loyalty; why will some European LCAs introduce FFPs in the near future; and, how should FFPs be designed to be well suited to European LCAs? The paper hypothesizes that since LCAs offer passenger transportation according to a simple business model that combines point-to-point (PP) traffic with low fares and eliminates all unnecessary services, the implementation of an FFP causes additional costs and complexity, thus, it seems not to fit to the low-cost, no frills business model.

Language

  • English

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Filing Info

  • Accession Number: 01004554
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Sep 29 2005 5:12PM