Loyalty by the billions: Qantas leads the charge
A new report from US-based IdeaWorks reveals that Qantas has the world’s most lucrative frequent flier programme (FFP) in terms of revenue raised per member.
Qantas makes US$158.51 per FFP member, well ahead of Alaska Airlines, which pockets US$120.26 per member of its frequent flier programme.
In terms of total annual revenue from a frequent flier programme, the United Continental duopoly makes US$3 billion annually, followed by Delta Airlines with US$1.6 billion.
American Airlines is estimated to makes US$1.3 billion from its FFP programme, followed by Qantas with US$1.1 billion.
“Beliefs are sometimes hard to dispel, and too many airline executives still think frequent flier programmes damage the bottom line. But it’s impossible for critics to ignore the $7.1 billion accrued by the programmes at American, Delta, Continental, Qantas, and United,†said IdeaWorks’ Jay Sorensen.
“Savvy airline executives know these programmes provide piles of cash from the sale of miles and points to partners, the a la carte fees associated with reward travel, and the revenue members provide the airlines when they buy more travel,†Sorensen added.
As an example, the Delta SkyMiles co-branded card portfolio had charge activity exceeding US$35 billion for 2010 . . . more than the annual revenue of the airline.
Loyalty by the Billions is a free 10-page report sponsored by ezRez Software. The full report is available at the IdeaWorks website: www.IdeaworksCompany.com/news
Ian Jarrett
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