Fragmented Frequent Flyers

Over the years, travelers have generally been well served by airline frequent flyer programs (FFP). However, with the pressure on to reduce airfare costs, many business travelers now choose, or are required by their companies, to fly with low-fare airlines.

Today’s passengers fly as much as they used to, but now have very fragmented travel patterns. These passengers still are frequent travelers, who manage to accumulate a significant number of miles in Y class seats in scheduled airlines or in low-fare airlines. Unfortunately, they never achieve an airline’s top-tier FFP status nor the benefits of being top-tier. A new class of traveler has evolved: the “fragmented frequent flyer” (FFF or #fragflyer).

Airlines continue to experience significant cost pressures as a result of increased fuel and insurance costs, transparent fares pricing and more low-fare competition. Some airlines are now restricting benefits, even to their top-tier frequent flyer groups. As an example, it is harder to redeem reward miles due to the decrease in airline capacity. And as the pressure builds for more cost reductions, the lower-tier frequent flyer groups will be the casualty. Essentially, the loser in the current …