Originally Posted by
gojko88
I'm not so convinced about that. The point of loyalty programmes is to offer value to consumers that have a choice of airline, and those are not necessarily the largest spenders.
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Originally Posted by
copperred
No, the point of an FFP is to drive revenue to the airline for profit maximization.
These two are not mutually exclusive.
It can easily be argued that offering perks to the highest spenders does not drive revenue and thus drive unnecesary costs. Because highest spenders could very well be those without choice et.c., where the revenue will be pretty much the same regardless of loyalty programme incentives.
A loyalty programme that manages to drive extra revenue exceeding loyalty costs must likely target a much more diverse segment than "highest spenders".