Impact Of An Economic Crisis On The Role Of Mileage Program ASSENGERS' CHOICE OF AN AIRLINE

Abstract

Customer loyalty and frequent flyer programs are proven to have a significant loyalty effect and a large influence on buying decisions (such as the choice of airline) in economically stable periods. The goal is to explore whether these influences and loyalty effects of frequent flyer programs still persist in economically difficult times of a likely longer duration, such as the situation in the second half of 2009. Just under 600 travelers have been questioned about their perception of the economic crisis on the one hand, and the influences on their choice and preference of airlines as well as the importance of frequent flyer programs for these choices on the other hand. 
 The result of this research is that the economic crisis in fact has an impact on the importance of frequent flyer programs for the choice of airline, and that this importance has been reduced significantly. A preference for the airline of whose frequent flyer program the passenger is a member can still be found, but the actual behavior differs from it. This effect is measurable for all types of travelers and along various different stratifications (e.g. income, share of business trips) of the participants.