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The Cost of Loyalty Programs

The Economy, Stupid

CHAPTER

The Evolution of Airline Loyalty Programs

This chapter explores the transformation of airline loyalty programs from simple rewards to complex systems designed to track consumer behavior. It discusses the financial motivations behind these programs, including how airlines generate and monetize loyalty points, as well as their psychological impact on consumers. The chapter highlights the advantages of customer loyalty, alongside contemporary challenges like rising costs, which influence consumer purchasing decisions.

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