Airline Loyalty: Why Airlines Are Devaluing Programs

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Pressures on airlines to devalue programs Airline loyalty programs are diverging sharply, with some carriers cutting back benefits in order to reduce costs, while others are investing in program enhancements to build long-term customer loyalty. Devaluation tactics such as increased redemption rates, restricted availability, and reduced elite perks are often implemented with little notice, eroding trust and disproportionately affecting non-elite members. These moves are financially....