News and Research

Co-branded credit cards deliver wheelbarrows of money for some airlines. The latest IdeaWorksCompany report explores how this has transformed frequent flyer programs (FFPs) and contemplates the effect upon customer loyalty. Many airlines have shifted from sole reliance on behavioral loyalty, which relies upon a customer’s expectations for service and quality. Carriers now embrace transactional loyalty which emphasizes exchange relationships where something is given and something is received. The report advises caution about over-reliance on the co-branding bounty and suggests focusing more on the overall customer experience. Airline Loyalty Becomes a Multi-Billion Dollar Club was issued today as a 16-page report. It describes how airline FFPs generate revenue in the billions and provides abundant analysis and research on the business of co-branded credit cards.