Airline Loyalty: The Financial Powerhouse at the Center of Airline Strategy
Report Overview
Skfit Research's latest deep dive into the airline sector focuses on loyalty programs. These programs have become significant financial powerhouses, with some experts arguing that the value of an airline's loyalty program can even surpass that of the airline itself. This is partly because loyalty programs often demonstrate better growth and higher profit margins compared to the core airline business, while also generating steady cash flows.
This report examines why low-cost carriers have not achieved the same level of success as full-service airlines in developing effective loyalty programs. It examines whether there are strategies these carriers can adopt to create successful and engaging programs. With technology now at the forefront of changes in airline operations, the report also considers whether advancements in technology can enhance loyalty offerings or if airlines will continue relying on traditional "earn and burn" models.
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