Integrating frequent flyer programs in multilateral airline alliances

Gudmundsson, Sveinn Vidar; Boer, Evert R. de; Lechner, Christian

doi:10.1016/s0969-6997(02)00043-1

Cited by 35 publications

(23 citation statements)

References 6 publications

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“…There are often other partners in FFPs ranging from banks, rental cars and hotel services to less conventional ones such as miles collected at food retailers and restaurants. In some case the margins on the sale of these indirect miles are greater than those obtained by selling discounted tickets, although, Gudmundsson et al (2002) finds that some airline managers feel this can erode carrier loyalty effects.…”

Section: The Questionnairementioning

confidence: 99%

Evaluating frequent flyer programs from the air passengers' perspective

Martı́n

Román

Espino

2011

Journal of Air Transport Management

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Section: The Questionnairementioning

confidence: 99%

Evaluating frequent flyer programs from the air passengers' perspective

Martı́n

Román

Espino

2011

Journal of Air Transport Management

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“…Selling miles to non-airline partners has become an important source of revenue for airlines. Gudmundsson et al (2002), however, point out that non-airline partners may erode the specific carrier loyalty effect if frequent flyers can accrue miles faster through them. In addition, reaching agreements with partners on FFPs and managing these agreements beyond the company's own organization adds to costs.…”

Section: Article In Pressmentioning

confidence: 97%

Frequent flyer programs for European low-cost airlines: Prospects, risks and implementation guidelines

Klophaus

2005

Journal of Air Transport Management

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“…Even though MLA gives substantial benefits to airlines but merging the individual FFPs in an alliance seems uncertain as it will depend on the homogeneous size of the program, the information technology & databases settings, and also the flexibility to change a FFP to adapt to the other partners (Gudmundsson et al 2002). A future study capturing the effect of MLA would be contributing to the body of knowledge of about this program.…”

Section: Limitationsmentioning

confidence: 99%

The Role of Relational Reward Benefits for Developing the Non-Financial Value of a Customer to an Organization: Structural Equation Modeling Approach

Kristiani

Sumarwan

Yuliati

et al. 2014

GADJAH MADA INT. J. BUS.

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Abstract:Research on the customer value to an organization has been widely explored, yet most studies only determined on the financial value based on the customer's purchasing behavior. The value of customers beyond their purchasing behavior -defined as the relational worth -has not been commonly captured yet. This non-financial value is one of the drivers in retaining customers, hence it becomes a crucial factor in preserving the profitability of the organization. For this reason, this paper aims to examine the customer non-financial valuations of a loyalty reward program. The scope of the study covered a reward program involving consumer exertions in the context of a Frequent Flyer Program (FFP) offered by an airline in Indonesia. The hypotheses are empirically tested with a sample of FFP members conducted through an online survey (n=475). The data were statistically analyzed using structural equation modeling (SEM) as a first order construct. Results indicate that the perceived social rewards lead to an affective and normative commitment as well as consumers' satisfaction, while the economic reward did not have an effect on developing affective bonds with members for long-term relationships. The relational benefit offered through the FFP creates affectively and normatively committed members who produce relational behaviors, in terms of WOM, immunity, openness and acquiescence of the members to the airline. Furthermore, the FFP members produced social behaviors toward the airline when they felt satisfied with their relational exchanges.Abstrak: Pada umumnya penelitian untuk mengidentifikasi siapa pelanggan-pelanggan yang berharga hanya berasarkan pada nilai transaksi (berapa banyak uang yang dibelanjakan pelanggan) dan belum mempertimbangkan nilai-nilai sosial pelanggan yang diberikan kepada perusahaan. Nilai sosial ini merupakan salah satu penentu keuntungan perusahaan. Penelitian ini bertujuan untuk mengetahui pengaruh hadiah yang diberikan kepada pelanggan terhadap nilai sosial yang dihasilkan. Penelitian dilakukan terhadap program loyalitas yang melibatkan usaha pelanggan dalam mendapatkan hadiah dan dalam konteks Frequent Flyer Program. Hipotesa diuji dengan menggunakan sampel yang terdiri dari 475 anggota FFP yang diperoleh dengan melalui survey online. Data dianalisis secara statistik dengan Stuctural Equation Modelling (SEM). Hasil penelitian menunjukkan bahwa hadiah yang bersifat sosial mempunyai pengaruh signifikan terhadap terciptanya perasaan emosional dan kepatuhan terhadap peraturan atau norma, dan perasaan puas dari

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Integrating frequent flyer programs in multilateral airline alliances

Cited by 35 publications

References 6 publications

Evaluating frequent flyer programs from the air passengers' perspective

Evaluating frequent flyer programs from the air passengers' perspective

Frequent flyer programs for European low-cost airlines: Prospects, risks and implementation guidelines

The Role of Relational Reward Benefits for Developing the Non-Financial Value of a Customer to an Organization: Structural Equation Modeling Approach

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