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A Conceptual Framework For Valuating Airline Frequent Flyer Program Miles, Yi Gao
A Conceptual Framework For Valuating Airline Frequent Flyer Program Miles, Yi Gao
International Journal of Aviation, Aeronautics, and Aerospace
Frequent flyer programs of airlines have gradually evolved into a multi-billion dollar business over the years. Valuing frequent flyer program miles accurately and fairly has its practical implications both for airlines and members of frequent flyer programs. As a ground-breaking academic study dedicated to airline loyalty programs, this study aims to build a conceptual framework to guide the valuation of miles. Through comparing required miles for different award types with their equivalent cash prices, this study has successfully addressed the purchasing power of AAdvantage miles of American Airlines when they are used for award redemption. Not only can this study …
The Perceived Value Of Frequent Flyer Program Benefits Among Australian Travelers, Yi Gao, Madeline Carrigg, Robert Lewinski, Danielle Polderman, Paul Tkalcevic
The Perceived Value Of Frequent Flyer Program Benefits Among Australian Travelers, Yi Gao, Madeline Carrigg, Robert Lewinski, Danielle Polderman, Paul Tkalcevic
International Journal of Aviation, Aeronautics, and Aerospace
Understanding the perceived value of frequent flyer program benefits is crucial for commercial operations of airlines. This study aimed to investigate if travelers value various benefits provided by airlines and if such valuation correlates with certain characteristics of travelers. Through a scenario-based questionnaire it was confirmed that travelers do value extra and premium benefits offered by airlines, and such valuation increases along with the distance of route. It was also been found that top-tier members were willing to make a much higher offer for the same benefits on long-haul international route than members of lower status, but such difference in …