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Airline Loyalty Is Fleeting

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Source: Media Article

Date: Aug 20, 2013

Source: USA Today
Author: Charisse Jones

When it comes to airline loyalty programs, fliers may be a bit fickle.

A new survey by the professional services firm Deloitte, found that 66% of business travelers were open to switching to another airline loyalty program even if they'd earned the elite status that gives them access to extra perks.

Among corporate fliers, the most coveted of passengers because they often pay top dollar to fly at the last minute, only 40% fly at least ¾ of their miles on their "preferred'' carrier. And 72% of business travelers who fly at least 50,000 miles a year participated in at least two airline loyalty programs.

"If you came and said I'd give you all the perks, plus two more if you switch airlines, they'd probably switch,'' said Adam Weissenberg, vice chairman and U.S. leader of Deloitte's travel, hospitality and leisure sector.

American Airlines launched the first frequent flier program in 1981. Since then, the programs have become ubiquitous in the airline industry with hundreds of millions of members earning miles for the trips they take as well as for various purchases.

But Weissenberg says that nowadays, no one program stands out as distinctive. "They've all become the same,'' he says. "There's nothing unique from one to another."

The overall flying experience has also deteriorated, he says, becoming known more for packed planes than great service. Even some of the perks that come with elite program status, like upgrades to premium cabins and roomier seats, are harder to come by as airlines offer those extras to other fliers for a price, and cut back on the overall number of seats they put in the air to better match demand.

"If you're on crowded planes all the time (and) you have to pay for everything on the plane, that doesn't really inspire loyalty,'' Weissenberg says. Rather than comparing loyalty programs, he says, some passengers simply think "I'll just take the cheapest ticket that I can find.''

But Victoria Day, spokeswoman for Airlines For America, the trade group representing most major U.S. carriers, says that frequent flier programs continue to be a magnet for many fliers.

"Many customers make their flying decisions solely based on loyalty, and the rewards afforded them for their business,'' Day says. "Airlines are continuously adapting to ensure their loyalty programs are offering products and services that matter most to their members, who are often their most loyal and valuable customers.''

Weissenberg says that airlines can keep program members coming back by offering more personalized perks, from a complimentary glass of red wine for the passenger who regularly orders one, to "a newspaper we know you like to read. Something customized to me as a traveler.''

Those personal touches will require airlines to invest more in staff training and systems that can better pinpoint, track and appeal to frequent fliers. But, Weissenberg says, "the airlines have an opportunity.''

READ MORE: Frequent flier programs go beyond free flights

Steve Klein, a member of USA TODAY's road warrior panel, says that he stays true to American's frequent flier program, though he doesn't see much difference between what most carriers offer.

"I'm extremely loyal to American Airlines since I live in Dallas,'' Klein says. "But I feel that most of the programs are similar.''

Still, John Miles, another Road Warrior panelist, says it pays to stick to one carrier if you can.

"Once you get to the top of a program it is very rewarding to stay there,'' says Miles, who lives in Lawrence, Kansas, and is vice-president, operations for a company that recycles asphalt highways.

"The top of one program will always be superior to the bottom of another," says Miles.

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