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Assessing Passenger Loyalty Programs in the Airline Industry: A Comparative Analysis of Value Delivery and Customer Perceptions at Polish Regional Airports

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  • Anna Szymczak-Ronikier

Abstract

Purpose: This study aims to evaluate the effectiveness of passenger loyalty programs in the airline industry, focusing on value delivery and customer perception in Polish regional airports. The research investigates how these programs influence customer loyalty, satisfaction, and overall travel behaviour. Design/Methodology/Approach: The study utilizes a mixed-methods approach, incorporating quantitative and qualitative data collected through surveys. Data were gathered using CAWI (Computer Assisted Web Interviewing), PAPI (Paper and Pencil Interviewing), and CAPI (Computer Assisted Personal Interviewing) techniques. The sample consists of 2256 passengers from seven regional airports in Poland, surveyed between December 2022 and March 2023. Findings: The results indicate that only 15.5% of respondents participate in airline loyalty programs, with a higher participation rate among traditional carrier customers (28.21%) compared to low-cost carrier customers (12.86%). The most popular loyalty program is Miles&More, followed by WIZZ Discount Club and Flying Blue. Key benefits valued by participants include mileage bonuses, increased baggage allowance, and priority services. There is a positive correlation between program participation and increased travel frequency, preferred airline choice, and overall satisfaction. Practical Implications: The findings provide insights for airline and airport managers to enhance loyalty programs by tailoring benefits to meet passenger preferences and improving communication strategies. This can lead to increased customer retention and higher revenue. Originality/Value: This study contributes to the existing literature by providing a comparative analysis of loyalty programs in the context of Polish regional airports. It highlights the specific needs and preferences of passengers in this market, offering practical recommendations for improving program effectiveness.

Suggested Citation

  • Anna Szymczak-Ronikier, 2024. "Assessing Passenger Loyalty Programs in the Airline Industry: A Comparative Analysis of Value Delivery and Customer Perceptions at Polish Regional Airports," European Research Studies Journal, European Research Studies Journal, vol. 0(Special A), pages 494-509.
    • Handle: RePEc:ers:journl:v:xxvii:y:2024:i:speciala:p:494-509
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    References listed on IDEAS

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    1. Reales, Celia Nadal & O'Connell, John F., 2017. "An examination of the revenue generating capability of co-branded cards associated with Frequent Flyer Programmes," Journal of Air Transport Management, Elsevier, vol. 65(C), pages 63-75.
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    More about this item

    Keywords

    Air transport market; frequent flyer programs; passenger satisfaction.;
    All these keywords.

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
    • Z32 - Other Special Topics - - Tourism Economics - - - Tourism and Development

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