The Future of Revenue Management and Frequent Flyer Programmes

Loyalty programmes and Revenue Management (RM) have arguably been the most widely adopted business practices that trace their origins back to the airline industry. Frequent flyer programs (FFPs) have set the gold standard for loyalty programs in general, and airline RM techniques have been applied successfully in myriad industries. But despite their rock star status, the relationship between the two has at times been frosty - and fraught with a certain level of suspicion. If the FFP is a stadium-filling rock star, then perhaps RM would be best characterized as the established and respectable philharmonic orchestra, that views its younger and more brazen counterpart with equal parts disdain and admiration. But looking ahead, new developments in RM could turn the tables - and may lead to a closer integration between the two - ultimately impacting the design and management of loyalty programs in the future.