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Curse or blessing? : The significance of loyalty programs in pandemic times

Stock, Robin (2021) Curse or blessing? : The significance of loyalty programs in pandemic times.

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Abstract:The Corona pandemic has hit the economy hard. Especially the aviation sector has been plunged into an unprecedented crisis suffering severe losses in revenue due to travel restrictions and border closures. Airlines worldwide have experienced a drastic decline in passengers of an estimated 64% for 2020. In Germany alone were approximately 132 million fewer passengers in 2020 than in the previous year (Keller, 2021). Pre-pandemic, the Deutsche Lufthansa AG, Germany’s largest airline, focused primarily on business travelers. These also make up the largest share of status holders of Lufthansa’s frequent flyer program Miles & More. However, business travel has declined significantly because of the pandemic, with meetings being held primarily online. This raises the question whether frequent flyer programs such as Miles & More will still be relevant in the post-pandemic, as the industry suspects that business travel will not return to pre-crisis levels after the pandemic (Koenen, 2021). Despite the popularity of frequent flyer programs, no academic research has been published in respect of how a frequent flyer program acts in pandemic times and what its loyal customers expect of it in the future. This thesis is a first examination on expectations of Miles & More members on the outlook of the program, questioning the frequent flyer programs’ relevance after the Corona pandemic.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:83 economics, 85 business administration, organizational science
Programme:Business Administration MSc (60644)
Link to this item:http://purl.utwente.nl/essays/88035
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