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Marketing through Frequent Flyer Programmes: The Example of China Airlines

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  • Abby Liu
  • Geoffrey Wall
  • John Westlake

Abstract

Many recent studies document that, although frequent flyer programmes (FFPs) appear to be an excellent example of relationship marketing designed to build customer loyalty, frequent flyer miles rarely act as a primary reason for choosing one carrier over another. A case study of China Airlines (CAL) was undertaken to understand how FFPs have become an integral part of airline marketing and to examine the reasons why airlines have been using FFPs despite research results that indicate their ineffectiveness. The findings of this study indicate that FFPs are shown to be a significant and effective marketing technique in the airline industry with positive implications for the financial performance of both the carriers involved and their partners. The study also reveals the different dimensions and the complex nature of FFPs, including issues related to market mix, market share and regulations.

Suggested Citation

  • Abby Liu & Geoffrey Wall & John Westlake, 2000. "Marketing through Frequent Flyer Programmes: The Example of China Airlines," Tourism Economics, , vol. 6(3), pages 233-249, September.
    • Handle: RePEc:sae:toueco:v:6:y:2000:i:3:p:233-249
    DOI: 10.5367/000000000101297613
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    Cited by:

    1. Wu, Hanjun & Tsui, Kan Wai Hong, 2020. "Does a reward program affect customers’ behavioural intention of visiting the airport? A case study of Singapore Changi Airport," Journal of Air Transport Management, Elsevier, vol. 82(C).

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