1 May: Are You A Frequent Flyer?
In the deregulated skies of the 1980s, airlines needed new ways to make customers feel special. Enter the first major frequent flyer program, American Airlines’ AAdvantage, on 1st May, 1981.
Bob Crandall built a powerful data system to track and process his customers’ miles, giving American a huge head start whilst rivals scrambled to copy his idea. Suddenly, airline loyalty points weren’t just for free flights — they were currency. Hotels, car rentals, and restaurant reservations got looped in, creating the foundation for today’s sprawling loyalty ecosystems.
In this episode, Arion, Rebecca and Olly discover how much airlines lose on each ticket they give away; uncover the small regional airline that actually beat American to the frequent flyer market; and reveal how one man with a lifetime pass has flown 25 million miles…
Further Reading:
• ‘FARE GAMES AND THE FREQUENT FLIER’ (The New York Times, 1982): https://www.nytimes.com/1982/10/17/travel/fare-games-and-the-frequent-flier.html
• ‘AAdvantage Celebrates 40 Years of Loyalty Innovation’ (American Airlines Newsroom, 2021): https://news.aa.com/news/news-details/2021/AAdvantage-Celebrates-40-Years-of-Loyalty-Innovation-AADV-04/default.aspx
• ‘Bob Crandall and Rick Elieson chats about the history of AAdvantage and how loyalty is evolving’ (Loyalty Leaders Podcast, 2021): https://www.youtube.com/watch?v=-RZe4HCQVsw
#Business #Advertising #80s #US