Take More Vacations: How to Search Better, Book Cheaper, and Travel the World
Basically, airlines look like they make money from flights, but they actually make money from loyalty programs. Without its loyalty program, Delta would be worth -$7 billion. With it, it’s a $19 billion company.
Byrne Hobart • Why the Survival of the Airlines Depends on Frequent Flyer Programs
The mechanics of a loyalty program are simple: Flyers earn rewards, generally by flying or using branded credit cards. They redeem those rewards for flights.
Byrne Hobart • Why the Survival of the Airlines Depends on Frequent Flyer Programs
That was it. American could have its customers accumulate mileage instead of Green Stamps, earning free travel instead of household appliances. The concept was not unheard-of among the airlines. Southwest Airlines already had a program in which secretaries got free travel after booking so many trips for their bosses.