David Feldman

Are Revenue-Based Frequent Flyer Programs Driving Profitability?

One of the biggest problems in the loyalty industry is that the debate over changes to the frequent-flyer Programs (FFPs) of American, United and Delta is polarized into two camps: 1/ Loyalty industry cheerleaders reacting to the concept of program changes being “revenue-based” with the...

Are Frequent Flyer Spin-Offs Dead?

Ever since Air Canada started the process of divesting its Aeroplan Frequent Flyer Program (FFP) in 2005 — the global loyalty zeitgeist has seen virtually every loyalty consultant, major consulting firm, coalition program operator, financial analyst, and long-term “loyalty insider” — place Air Canada...

Loyalty — What Exactly is a “Revenue-Based Program”?

In our previous articles exploring Loyalty Myths, we took a look at whether programs should be concerned about large points liabilities sitting on the balance sheet. We also took a deep dive into “Breakage”, and the role it plays in loyalty program management. In this…

Loyalty Myths: Is Breakage Good

In our previous article exploring Loyalty Myths, we took a look at whether programs should be concerned about large points liabilities sitting on the balance sheet. Lots of folks have reached out with questions around Breakage, and the role it plays (or should play) in...

Loyalty Myths: Are frequent flyer miles a liability?

At the end of 2015, members of the American Airlines AAdvantage program had over 853 BILLION frequent flyer miles outstanding. Those miles represented a total liability of around $2.45 billion. Many folks see this “debt” as a threat to the viability of the airline and…

The Psychology of Basic Economy

With American Airlines finally announcing the details of its version of Basic Economy — let’s take a look at some fascinating psychology behind the basic economy experience. BASIC ECONOMY — THE MYTH Let’s get something clear right now — Basic Economy fares are NOT about cheaper fares. As American Airlines has acknowledged,...

When Big Data Goes Bad…

Big Data is the word. You may have heard something about it. Big Data in loyalty programs is being used to learn detailed profile metrics on our customers and use predictive semantics to identify triggers of loyalty/disloyalty, responses to promotions and other incentives. We know…

How United “Nailed It” with Basic Economy

Depending on where you sit (especially on an airplane) — you may view this article title as positive or negative. It’s not my intention today to pass comment more generally about the concept of Basic Economy; the devaluing of any premium brand image that United may have...

Does Your Airline Even Want You To Fly Them?

Many highly-coveted airline perks such as free bags, priority boarding, and club lounge access, can now be obtained by carrying an airline’s co-branded credit card. In fact — some airline credit cards allow you to earn elite VIP status simply by spending on the card. The trend...

The Psychology of Loyalty Programs

The reward proposition is what drives customer behavior I recently had the opportunity to speak at the [email protected] Awards conference in Las Vegas, where I spoke about customer engagement. One...

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