Impact of Frequent Flyer Programs

Frequent flyer programs play a crucial role in shaping the airline industry's business model by enabling extensive data collection and analysis. These programs allow airlines to create detailed profiles of customer preferences, behaviors, and spending habits, ultimately leading to targeted marketing strategies for premium ticket offerings. Historically, many premium seats were offered as upgrades to loyal customers rather than sold outright, but there's a notable shift where airlines are increasingly selling these premium seats for cash. This change indicates a strategic transition in how airlines approach revenue generation, capitalizing on insights obtained from loyalist behavior and preferences.