A Study on the Customer Satisfaction from the Airlines’ Frequent Flyer Programs(FFPs)

In the rapidly changing environment of the air service market at home and abroad, air transportation business companies in Korea have to find potential customers with high quality services, analyze potential markets and predict the changes of customers’ satisfaction exactly. Frequent Flyer Programs (FFPs) mean that airline companies keep customers as the members who use their own airlines, add mileage to the customers according to their boarding results, and provide rewards to them if the accumulated mileage meets certain criteria. The methods of rewards are to provide free tickets, class upgrades, free access to the products of partner companies, and the like. These benefits of the airlines will attract their members to use their own airlines continuously. As customers want higher rewards by keeping accumulating mileage, they continue to use their enrolled airlines. Therefore, FFPs will work favorably to some leading airlines which have already high market shares and implement various strategies with their capital power and broader routes.