Do you believe that airline industry loyalty programs are becoming a disincentive due to the inability to redeem the rewards for true value in a timely manner?
For the most part, airlines are commoditized and so are their
customer loyalty programs
. With the exception of airlines like Virgin, Southwest and Singapore, they principally compete on price and schedule. Their loyalty programs have been co-opted for a variety of reasons, one of which is that the rewards – such as the use of frequent flyer miles – have become a nightmare to redeem, and have really diminished perceived value. Virgin, Southwest and Singapore have very cohesive, customer-focused cultures, and this is evident based on the treatment passengers receive and the experiences they share. Airline loyalty programs haven't necessarily become a disincentive, but they aren't building the loyalty behavior the airlines desire.
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