Explain Frequent Flyer or Miles programme.

A Frequent Flyer or Miles Program is a loyalty program offered by airlines to reward and encourage repeat customers. The program allows travelers to accumulate points or miles based on the distance flown, ticket price, or class of service. These accumulated points can then be redeemed for various benefits and perks, creating an incentive for passengers to choose a specific airline repeatedly.

Key Components of Frequent Flyer Programs:

1. Accrual of Points or Miles:

   • Passengers earn points or miles for each flight they take with the airline. The accumulation is often influenced by factors such as the distance traveled, the fare class, and the airline's specific program rules.

2. Elite Status Tiers:

   • Many programs have tiered membership levels (e.g., Silver, Gold, Platinum) based on the number of miles flown or segments completed. Higher tiers typically offer enhanced benefits like priority boarding, lounge access, and bonus miles accrual.

3. Redemption Options:

   • Accumulated points or miles can be redeemed for a variety of rewards. Common redemption options include free flights, upgrades to higher classes, access to airport lounges, merchandise, hotel stays, and car rentals.

4. Alliance Partnerships:

   • Airlines often form global alliances, and members of one airline's frequent flyer program can earn and redeem miles on partner airlines within the alliance. This enhances the program's attractiveness by providing a broader range of options for earning and using points.

5. Credit Card Partnerships:

   • Frequent flyer programs often collaborate with credit card companies to offer co-branded credit cards. Cardholders earn additional points or miles for everyday spending, accelerating their ability to redeem rewards.

6. Expiration Policies:

   • Points or miles usually have an expiration date, requiring members to engage with the program regularly to maintain their balance. However, elite status members may enjoy longer expiration periods or exemptions.

7. Promotional Offers and Bonuses:

   • Airlines frequently introduce promotions and bonuses to encourage members to fly during specific periods or choose specific routes. These promotions can include bonus miles, discounted awards, or double miles for qualifying flights.

Frequent Flyer Programs not only foster customer loyalty but also contribute to revenue generation for airlines. They incentivize travelers to stick with a particular airline, even if alternatives exist, and create a sense of brand loyalty by providing tangible benefits and recognition to frequent travelers. Additionally, these programs contribute valuable data for airlines to understand and cater to the preferences of their most loyal customers.