Global Traveler
“Most frequent-flyer programs or loyalty programs are geared toward high-repeat travelers, which are usually business travelers,” said Ben Baldanza, an economist and former CEO of Spirit Airlines (2005–2016). “If business travel reduces, changes, and people work at home or meet using video, not earning miles on room nights, it’s harder to earn a free flight or hotel room. If consumers have to wait years to get their rewards, loyalty reduces.” Jay Sorensen, president, IdeaWorksCompany, concurred: “At the present, business travel is largely missing. I would guess business travel is off 80 percent. That’s a huge number, so that is an uncertainty. Frequent- flyer programs are for business travelers, primarily.” IdeaWorksCompany specializes in brand development and developed frequent-flyer programs for international airlines. “When the airline is uncertain what’s going on, it’s really hard to reengineer the program to perform for whatever the new environment is you end up with,” Sorensen continued. “What’s been happening with frequent-flyer programs is they want to keep you engaged, so they’re not allowing your miles to expire or your status to expire.”