WSJ Case Study: The Higher Value of Airline Loyalty Programs Compared to Airlines Themselves

WSJ Case Study: The Higher Value of Airline Loyalty Programs Compared to Airlines Themselves

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