In a new video titled “Why Airline Loyalty Programs Are Valued Higher Than Airlines Themselves | WSJ Case Study”, the Wall Street Journal delves into the world of airline loyalty programs and how they have evolved into billion-dollar businesses with far-reaching impacts beyond the aviation industry.
American Airlines, a pioneer in the field, launched the first major airline loyalty program in 1981 in response to increased competition following deregulation. This move paved the way for similar programs from other major airlines like United, Delta, and Southwest, ultimately changing the way the world flies.
The AAdvantage loyalty program, created by American Airlines, has become a business in its own right. Airlines now sell miles to banks, creating a lucrative revenue stream that has helped these programs thrive. In fact, these loyalty programs have become so valuable that they are often valued higher than the airlines themselves.
The video breaks down the history of airline loyalty programs, the impact they have had on the industry, and the competition among airlines to attract and retain customers through these programs. Exclusive interviews with the creator of the first airline loyalty program and American Airlines VP of Revenue provide insight into how these programs have reshaped the way airlines do business.
Overall, the video sheds light on how airline loyalty programs have become a cornerstone of the aviation industry, driving customer loyalty and revenue for airlines while providing added benefits for passengers.
Watch the video by The Wall Street Journal
Video “Why Airline Loyalty Programs Are Valued Higher Than Airlines Themselves | WSJ Case Study” was uploaded on 11/14/2024 to Youtube Channel The Wall Street Journal
You couldn't afford to fly in the golden age of flight so stop complaining that it's not as good as it was in the past.
Summary pls
0:15, How old is that picture???
1:15 – Did she retire several years ago? I feel like she flied us to Maui and announced it was her last flight, she was officially retired. I'd swear that was her, but I doubt it would be.
Airlines have indeed become banks. With status based on what one spends on their flights (using their FF CC) one no longer has to even step foot on a plane to gain elite status. The revenue airlines make from their deals with branded credit cards is in the hundreds of millions of dollars each year.
Watch exclusive interviews with the creator of the first airline loyalty program and American Airlines VP of Revenue here: https://on.wsj.com/48Ktx8V