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Comment on Two-card Monte by View from the Wing » Blog Archive » Personalizing Loyalty Program Membership Cards

Wed, 06 Feb 2008 15:37:12 +0000

[...] Petersen has the details on a new trend (after all, one is a data point but two is a trend…) in personalized loyalty [...]

Comment on Choice Goes Preferred? by funnytravel

funnytravel — Sat, 23 Sep 2006 10:08:14 +0000

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Comment on Mileage Pro – The Story (Not the Movie) by Randy Petersen

Randy Petersen — Fri, 02 Dec 2005 14:53:31 +0000

All your questions were answered a long time ago. Anyone reading InsideFlyer will have had the opportunity to look over the index, read a complete chapter from the book and learn who the book is designed for:

http://www.insideflyer.com/

The complete book review is at the URL posted above. Whether you need the book or not? Many people know it all and the book was never designed for them. As noted above, it’s the “Dummies Guide.” If you follow that line of thinking then you won’t be disappointed.

Comment on Mileage Pro – The Story (Not the Movie) by Mark Terry

Mark Terry — Fri, 02 Dec 2005 04:32:52 +0000

That was an interesting stream-of-consciousness to tell us about the process of writing the book. What we need now is something to help us decide whether we need the book. We need to know exactly what is in the book, who should read it, who will benefit from it, and how we will benefit. If you will just take some time to think about it a while before putting pen to paper (or before typing), we would be better off.

Comment on Spinning Off Frequent Flyer Programs: Capital Asset for the Airline Industry by Mark Terry

Mark Terry — Mon, 15 Aug 2005 21:14:24 +0000

When we see more spinoffs of FFP’s, then we can talk about it more intelligently. For the time being, it seems to me that for an FFP to work as a loyalty program, it has to be administered by the airline for that airline’s loyal customers. And the terms of the FFP have to fit with the airline’s goals. I really don’t see how a spinoff fits within the basic concept of a loyalty program, nor how it would serve the airline with other than a temporary infusion of cash. And I am Mark Terry.

Comment on Spinning Off Frequent Flyer Programs: Capital Asset for the Airline Industry by Mark Terry

Mark Terry — Sat, 23 Jul 2005 21:01:23 +0000

With some airlines in deep trouble, it would make sense for them to sell off certain parts of their business. And since the business of selling frequent flyer miles is highly profitable, selling off that business obviously would make sense. But…

At the heart of FFP’s is the idea that they are “loyalty” programs. If the FFP (frequent flyer program) is spun off, then some of the connection to the airline is lost. The airline wants to control the FFP so as to encourage loyalty of the flyer to the airline. When you have FF miles that can be used on any airline, that weakens the whole idea. Moreover, the airline wants to control the terms and conditions of the FFP, including how many seats are available, how many miles to charge for those seats, how many bonus miles in first class, how many bonus miles for different levels of elite, etc. The closer the airline can control the FFP, the more they can set the rules for the FFP, and change those rules for their various promotions. To spin off the FFP may momentarily get some cash money, which airlines are desperate for, but in the longer run, it defeats the whole purpose of a loyalty program, and loses control of something the airline wants to use in its own way. And I am Mark Terry.

Comment on America West/US Airways (Visited) by Mark Terry

Mark Terry — Fri, 17 Jun 2005 01:25:58 +0000

And one more thing. When you wrote “End of panic,” did you mean that the “merger” of US Airways with America West puts to rest all concerns about the future of these airlines? Is America West so financially strong that it can swallow US Airways without getting a stomach ache? If two sick airlines lean on each other, might they not both fall down? I think these concerns remain.

Comment on America West/US Airways (Visited) by Mark Terry

Mark Terry — Wed, 08 Jun 2005 04:42:11 +0000

Well, Randy, you were right in your guess about the future service to Hawaii by America West. The recent announcement by America West tells us that there indeed will be an America West route to Hawaii. And I agree (oh, how I hate to do that!) with your generally optimistic attitude toward the merger of US Airways and America West. The routes, taken together, seem to make sense. What a new big airline they will be! I have one word of caution: it looks as tho US Airways will be swallowed by America West, and that is a lot to digest. America West has gotten respect, in recent years, for its good management. Whether that management will be good enough to manage the merger remains to be seen. US Airways may carry with it some rather large problems.

Comment on The Numbers That Others Don’t See by Randy Petersen

Randy Petersen — Wed, 18 May 2005 22:18:49 +0000

There’s a few factual things wrong with your hypothesis: It starts with assuming that airlines make up their own “funny number” show. Actually. in the late 80s. the AICPA (American Institute of CPSs) issued guidelines to the industry for reporting liabilities and other matters related to this topic, so what you see is fully authorized and updated. This issuing guidelines has been updated several times by this organization over the years. As for a “tipping point.” The programs recently passed the 24 year mark of existence and over that length of time there is a very well channeled set of experiences of redemption and liabilities given that it includes periods of other airline insecurity and even bankruptcies, ala the early 90s in the first Middle East crisis. My comments were framed within the 19 years of experience i have working full-time observing and reporting on this industry.

I certainly respect all views and hope that one would recognize that my thoughts on this are from a very educated point-of-view.

Thanks for your own comments.

Comment on The Numbers That Others Don’t See by Mark Terry

Mark Terry — Wed, 04 May 2005 21:56:14 +0000

The dreaded “liability” of airlines with regard to frequent-flyer miles is a mirage. Airlines can easily control any liability by increasing the number of miles required to fly, and by secretly decreasing the number of seats available for award travel. Pity not the airlines. The frequent flyer miles — which they sell to merchants and directly to customers — are the one sure source of revenue and profit to the airlines. Even airlines in financial trouble benefit from the miles programs.