A poorly managed rewards program can create a mediocre at best customer experience that won’t stand the test of time. So while frequent flyer programs have brought huge benefit to the airline, it appears that dangling a carrot in front of loyal customers isn’t working as well as it did in the past. Gradually, each year the airlines add more requirements to maintain status and charge more for less perks to status holders. I for one used to maintain a higher-tier status, but after calculating the costs I figured it was not worth it. Maybe I am the only one. I’ve long thought my loyalty to my favorite airline was not reciprocated by my favorite airline. If I dropped off the face of the earth (which I did) they don’t miss me (they don’t). However, now banks see the devaluation of miles they have purchased, and the banks are rethinking the bank/airline relationship. Airlines are paying attention and will and are taking a hit where it matters most to them: money.
Reward programs may not totally end, but they will ever change to a point we may say, what is the point? I could see airlines ending the programs as we know them and replace with the 'big spenders' getting an ‘invitation’ to a rejuvenated program that benefits the two parties involved. Something like United Airlines Global Services. Personally, I’d prefer not have to worry anymore if the mediocre mileage benefits I get today will be worth the same tomorrow.
Reward programs are certainly not in the customer’s control. Airlines have long had these clauses in the rules:
“The Program is offered at the discretion of United and United has the right to terminate the Program…with or without notice”
“Delta reserves the right to terminate the Delta frequent flyer program with six month notice”
“American Airlines may, in its discretion, change the AAdvantageŽ program rules, regulations, travel awards and special offers at any time with or without notice.”
Do you think airlines might actually consider ending the frequent flyer programs in the near future?