The dynamics of frequent flier and other loyalty
programs are changing, with airlines’ strategic control
over the programs starting to slip toward the credit
card companies that serve as intermediaries between
airline and customer.
Loyalty programs must be restructured to acknowledge
this new reality. Those programs that do not change face
the risk of being secondary “currencies,” with a
downward spiral of their currency and customer loyalty.
Those that do restructure raise their odds of owning a
dominant currency that customers want to keep and trade.