The effectiveness of frequent flyer programmes : a Maltese perspective

Abstract

The objective of this research is to look into the effectiveness of Frequent Flyer Programmes, within the local context. This was reviewed in light of the increasingly competitive environment in which airlines operate, and the subsequent changes in consumer preferences which were brought along. Air Malta’s Flypass programme is considered as the main focus for this research, in attempt to look into the effectiveness of the product within the local context. Data for this study has been obtained by conducting two sets of interviews. First, a number of interviews with existing members of the FFP were completed. This was then followed by interviews with airline staff members, who are either directly or indirectly involved within the overall management of the programme. The interview responses were then analysed in a manner which brings out any links and dissimilarities between both interview sets. The results of this research show that the effectiveness of the Flypass scheme has decreased significantly, precisely within the last number of years. Despite this, it emerges that mileage obtained from the FFP does have a partial role within the local consumer’s decision-making process, although minimal. Moreover, the current programme’s design has been reviewed as one of the main contributors which allowed for the perceived lack of effectivenes of the product. This research also presents an opportunity for the airline to tackle the present competitive environment by incentivising all repeat customers. One of the main recommendations put forward is to revise the current scheme in a way that makes it appealing towards other groups of travellers, who presently might be excluded from certain benefits despite their high travel frequency. In turn, this might allow for an increase in the levels of recognition and status amongst the airline’s frequent fliers, which might bring along other induced benefits.