As the cashless trend progresses, I think that there are many people whose wallets are overflowing with many cards.
Airline companies have issued their own cards as so-called "mileage cards" from early on, and miles are awarded according to the flight distance of the boarding flight (in principle, the flight distance is proportional to the fare received, that is, the airline's income). We provide a program that provides free flight tickets according to the number of miles accumulated.
The first frequent flyer program is American Airlines' "A Advantage" in the United States.Many airlines have since introduced similar programs.
By the way, the basic mechanism of this free flight ticket program is the same as the many point cards that you have at hand.Taking restaurants as an example, the mechanism is the same as if you use a total of 10 times, the next one will be free, and the more times you use it, the more you can get a free meal coupon or drink coupon.
If you think about it, getting one free out of 11 is the same as getting a 1/1 discount for each one.If anything, it's more profitable for customers who use it to get a lower price every time.In addition, IT investment for mileage management is also required for the airline company that provides it.
So what are the benefits of operating this frequent flyer program for airlines?
There are a number of possible reasons, but assuming there are seats available, airlines can offer free tickets without losing revenue, while customers have the same experience as purchasing tickets. It means you can get the goods.Seats, which are airline products, are non-stockable products.
Therefore, even if you use empty seats to give free tickets to frequent users, the additional cost is minimal (*For example, manufacturers cannot provide products for free without actually incurring manufacturing costs).
For these reasons, mileage programs are expanding, and in modern times, new business opportunities are being created by obtaining various customer information.
