The Impact Of Frequent Flyer Programs And Airline

Aim

What the creation of alliances, the airline industry is growing is a rapid rate with most airline corporations joining alliances, which can be a significant area of interest for business dissertation help. However, there has been little attention paid to assess the effect these alliances have had on the different airline programs, for example, the frequent flyer program. The research is aimed at evaluating the impact of these alliances on the frequent flyer program in all dimensions.

Literature Review

The pioneering Global alliance to be formed was created in the year 1997 becoming significant breakthrough for the frequent flyer program. The launch of the coalition gave frequent flyers an opportunity to earn miles across the various airline networks in the alliance rather than on one airline. Since then, more alliances have been formed. These alliances have had a significant impact on the frequent flyer program. There have been harmonised benefits for customers under the airline alliances’ wide structures there has also been a drastic increase in the customers’ willingness to participate in the programs (De Boer, 2017).

According to a study conducted by Joemon and Koshy to evaluate the effect of frequent flyer program on the quality of airline service on the customers’ intention to re-buy tickets, it was found out that the status of the frequent flyer program determined whether the customers were willing to re-buy tickets (2015).

Frequent flyer programs have been found to have positive implications for airlines as useful marketing tools thus promoting financial performance. The airline alliances also benefit financially through the numerous flyer programs (Yang & Liu, 2003).

Methodology

Data will be corrected using a survey whereby questionnaires and interviews will be applied. The data will be analysed using tables and graphs where the variables will be compared, data described and summarised.

The study will apply a quantitative method of research since the process allows a lot of data to be gathered and the variable for the study compared to come up with predictions by analysing the cause-effect relationship.

The variables for the data will include answers from the interviews which will be graded and questionnaire responses which also be classified to come up with data that is easy to analyse.

Resources

The study will require the following resources: Finances, research assistants to aid in the data collection process, information technology to be helpful in the data analysis. Their financial resources will be managed effectively to ensure that it caters for all the projects needs. A budget will be prepared to determine the business needs in every phase of the project. The number of research assistants required will be evaluated by coming up with a research plan that will assign duties to every participant. A time chart will be prepared to ensure the research is carried out at a designated time. Before data collection is started, all the resources will be kept ready to avoid inconveniences.

Literature

• De Boer, E. R. (2017). Strategy in Airline Loyalty: Frequent Flyer Programs. Springer. Joemon, P., & Koshy, M. P. (2015). Influence of Frequent Flyer Programme and Airline Service Quality on Re-buy Intentions of Airline Frequent Passengers Doctoral
• dissertation, Cochin University of Science and Technology.Influence of Frequent Flyer Programme and Airline Service Quality on Re-buy Intentions of Airline Frequent Passengers (Doctoral dissertation, Cochin University of Science and Technology).
• Yang, J. Y., & Liu, A. (2003). Frequent Flyer Program: a case study of China airline's marketing initiative—Dynasty Flyer Program. Tourism Management, 24(5), 587-595.
• Ziliotto, V. (2010). Relevance of the futron/zogby survey conclusions to the current space tourism industry. Acta Astronautica, 66(11-12), 1547-1552. doi: 10.1016/j.actaastro.2009.08.027
• Beard, S., & Starzyk, J. (2002). Space Tourism Market ; Study orbital space travel & destinations with suborbital space travel. Retrieved from
• O'Connell, J. F. (2006). The changing dynamics of the Arab Gulf based airlines and an investigation into the strategies that are making Emirates into a global challenger. World Review of Intermodal Transportation Research, 1(1), 94-114.
• Thuy, H. T. T. EMIRATES AIRLINE. Banerjee, A. (2013). Emirates airlines-An exploratory study. ZENITH International Journal of Business Economics & Management Research, 3(5), 133-141. Redpath, N., O'Connell, J. F., & Warnock-Smith, D. (2017). The strategic impact of airline group diversification: The cases of Emirates and Lufthansa. Journal of Air Transport Management, 64, 121-138.
• Chin, A. T. (2002). Impact of frequent flyer programs on the demand for air travel. Journal of Air Transportation, 7(2), 53-86. Retrieved from
• Goh, K., & Uncles, M. (2018). The Benefits of Airline Global Alliances: An Empirical Assessment of the Perceptions of Business Travelers. Retrieved from
• Uncles, M., & Goh, K. (2002). Airline Global Alliances: What is their Impact on Customer Loyalty? Retrieved from

Other References

• Iatrou, K., & Alamdari, F. (2005). The empirical analysis of the impact of alliances on airline operations. Journal of Air Transport Management, 11(3), 127-134. Retrieved from
• BLACKING, D. DO THE GLOBAL ALLIANCES PROVIDE REAL BENEFITS FOR THE CONSUMER? AN EXAMINATION OF STAR ALLIANCE, ONEWORLD AND SKYTEAM. Retrieved from

Primary Question

How has code sharing affected frequent flyer program over the past years in the airline industry?

Secondary questions

Does code sharing affect the loyalty of the frequent flyers?
What are the benefits of code sharing to the airline companies?
Have frequent flyer programs improved after adoption of code sharing?

Literature Review

Competition in the airline industry has resulted into constant and intense realignment in the different type of partnerships between airlines and other schemes of cooperation one of them being the code sharing scheme. This has resulted in competitive air ticket prices and other strategies aimed at increasing the companies' profitability. Code sharing strategy had been found to be of great benefit in promoting contracts formation with large corporations and which further guarantees the airline companies a more significant market share (Chin, 2002).

Code sharing has been of great value in the frequent flyer program since airline alliances can offer a wide array of code sharing flights choices for the customers. This ensures that there are faster transfers and also reliable check-in procedures (Uncle& Goh, 2002).

According to a study conducted by Uncles and Goh on the impacts of global airline alliances on the loyalty of customers, global airline alliances can unite to plan the structure of their route and the capacity. This ensures that there are high sales and higher efficiency through the code sharing method. This ensures that customers can enjoy a wide array of flight options. Moreover, customers can accrue their points for frequency flier program from the various airlines on a single frequency flier program (2002).

Methodology data will be collected using a survey. Questionnaires will be prepared to specify the exact questions that need to be answered the collect the necessary data. Interviews will also be arranged for crucial respondents. The interviews will be scheduled at a specific convenient time depending on the respondents’ schedules. The questionnaires will be issued to people willing to participate in the study.

Pretesting of the questionnaire before it is used in the primary study to ensure it achieves the study goals. Determining where to get the target respondents. Planning time for data collection. After everything is set the data collection begins The respondents will first be made to understand what exactly the research is about and then asked whether they are willing to participate. After obtaining the consent of the respondents, they are issued with the questionnaires and guided on how to answer the questions Respondents who cannot be able to read and understand the questionnaire will be aided. The questionnaires are then gathered and the data obtained recorded in the computer. The data will then be analyzed, and conclusions are drawn. Data collection using interviews will follow the following steps: Preparation of the questions to ask during the interview. Identifying potential interviewees. Obtaining consent from the interviewees on their willingness to participate in the study. Planning the date of the interviews which is convenient for the interviewees. Carrying out the interview and recording the data. Finally, all the data collected from the different interviews will be compiled saved in the computer and analysed to come up with the findings.

Literature

• De Boer, E. R. (2017). Strategy in Airline Loyalty: Frequent Flyer Programs. Springer.
• Joemon, P., & Koshy, M. P. (2015). Influence of Frequent Flyer Programme and Airline Service Quality on Re-buy Intentions of Airline Frequent Passengers (Doctoral dissertation, Cochin University of Science and Technology).Influence of Frequent Flyer Programme and Airline Service Quality on Re-buy Intentions of Airline Frequent Passengers (Doctoral dissertation, Cochin University of Science and Technology).
• Yang, J. Y., & Liu, A. (2003). Frequent Flyer Program: a case study of China airline's marketing initiative—Dynasty Flyer Program. Tourism Management, 24(5), 587-595.
• Ziliotto, V. (2010). Relevance of the futron/zogby survey conclusions to the current space tourism industry. Acta Astronautica, 66(11-12), 1547-1552. doi: 10.1016/j.actaastro.2009.08.027
• Beard, S., & Starzyk, J. (2002). Space Tourism Market ; Study orbital space travel & destinations with suborbital space travel. Retrieved from
• O'Connell, J. F. (2006). The changing dynamics of the Arab Gulf based airlines and an investigation into the strategies that are making Emirates into a global challenger. World Review of Intermodal Transportation Research, 1(1), 94-114.
• Thuy, H. T. T. EMIRATES AIRLINE. Banerjee, A. (2013). Emirates airlines-An exploratory study. ZENITH International Journal of Business Economics & Management Research, 3(5), 133-141.
• Redpath, N., O'Connell, J. F., & Warnock-Smith, D. (2017). The strategic impact of airline group diversification: The cases of Emirates and Lufthansa. Journal of Air Transport Management, 64, 121-138.
• Chin, A. T. (2002). Impact of frequent flyer programs on the demand for air travel. Journal of Air Transportation, 7(2), 53-86. Retrieved from
• Goh, K., & Uncles, M. (2018). The Benefits of Airline Global Alliances: An Empirical Assessment of the Perceptions of Business Travelers. Retrieved from
• Uncles, M., & Goh, K. (2002). Airline Global Alliances: What is their Impact on Customer Loyalty? Retrieved from
• Code-Share Economic Gain. (2008). Retrieved from
• Lederman, M. Do Enhancements to Loyalty Programs Affect Demand? The Impact of International Frequent Flyer Program Partnerships on Domestic Airline Demand. Retrieved from
• Lederman, M. Do Enhancements to Loyalty Programs Affect Demand? The Impact of International Frequent Flyer Program Partnerships on Domestic Airline Demand. Retrieved from
• Servin Almkvist, M. (2014). Codeshare Agreement–A way to gain market power and raise airfares?: An investigation of the effect of codeshare agreement on the European airline market. Retrieved from

References

• Implications of Airline Codesharing. Retrieved from
• Heimer, O., & Shy, O. (2006). Code-sharing agreements, frequency of flights, and profits under parallel operation. Competition policy and antitrust.

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