Frequent flyer schemes revamped to drive profits in tough times for airlines

Frequent flyer schemes revamped to drive profits in tough times for airlines

By Victoria Bryan

"BERLIN, Aug 11 (Reuters) - Beset by low air fares and relentless competition, airlines around the world are waking up to the value of their frequent flyer programs and realizing they can boost profits as well as brand profile..."

Now that airline ticket sales alone not greatly increasing revenue, airlines are more closely looking at and using their frequent flyer programs as their own form of currency. The data from frequent flyer programs has become a "rich seam (source) (of data) on rich customers", according to this article. And the new ways to use frequent flyer programs by the airlines is unsurprisingly changing the way that they conduct business.

To read this article, see:

http://finance.yahoo.com/news/frequent-flyer-schemes-revamped-drive-085033159.html

 

Interesting article. I wonder what data a FFP has that would make it worth billions in IPO>

 

Our travel patterns and habits, for sure. Our spending patterns, if we take advantage of affiliated shopping and dining programs. The size and age range of our family (which can be deduced from our ticket redemptions). And I suspect when everything is tied together, a pretty good guess at our incomes.

Companies love that sort of information, for targeting their advertising, and are willing to pay big bucks to get it.