Frequent flyer programmes: expect to see moves towards greater autonomy of these moneyspinners

Frequent flyer programmes (FFPs) can be an emotive subject. For many frequent flyers, their status in these schemes and their ability to redeem hard-earned points are important quality-of-life factors. A recently published survey reveals significant differences in customer satisfaction with the award redemption process of different airlines.

This highlights the importance of FFPs to airline brands through their contribution to the passenger experience. FFPs have evolved from simple mechanisms to reward an airline's frequent flyers with free flights on that carrier. They now embrace partner airlines and partner companies in other consumer sectors and can offer awards other than air travel. Awards are not even always restricted to humans: Virgin Australia has just announced a FFP for pets.

FFPs are also increasingly emerging as a profitable source of additional revenues for airlines. Although visibility of their financial contribution is mixed, there are growing examples of autonomous FFPs and third party investment and ownership.