Airline loyalty schemes have long been seen as a perk for frequent flyers. But in the U.S., these programs are doing more than keeping travelers happy, they’re keeping airlines financially stable. For travel managers and businesses, that has real implications for how you manage budgets, supplier relationships, and traveler satisfaction.
Loyalty is driving airline profitability
U.S. carriers now rely heavily on loyalty program revenue, particularly through credit card partnerships. In some cases, loyalty revenue outpaces profits from the core flying business. This shift makes loyalty schemes central to airline strategy, not just a marketing add-on.
What this means for corporate travel
Pricing power
Airlines with strong loyalty ecosystems are less pressured to cut fares. Expect more focus on value-add rather than deep discounts, such as free checked bags or complimentary upgrades.
Traveler behavior
Frequent flyers often make airline choices based on mileage earning potential, even when lower-cost options exist. And many airlines award loyalty based on how much a customer spends. These traits can drive up corporate travel spend if not carefully managed.
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Supplier negotiations
Airlines increasingly use loyalty data to strengthen their bargaining position. Travel managers need to weigh negotiated fare savings against the influence of loyalty-driven traveler preferences.
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Risk concentration
When airlines tie profitability to loyalty rather than ticket sales, business continuity relies heavily on credit card partners and consumer spending trends, an important factor for companies managing risk.
The ALTOUR perspective
At ALTOUR, we see loyalty shaping corporate travel strategies in three ways:
- Policy alignment: Balancing company savings with traveler satisfaction when loyalty drives airline choice.
- Data insights: Using reporting to see where loyalty-led preferences are adding cost—and identifying alternatives.
- Advisory support: Helping organizations renegotiate supplier deals and update travel policies in light of shifting airline economics.
Bottom line
Airline loyalty schemes are no longer just a frequent flyer perk, they’re a financial engine keeping carriers aloft. For businesses, understanding how loyalty influences both airline pricing and traveler behaviour is key. With the right strategy, you can capture value from these programmes without letting them drive up your costs.
Want to learn more about how you can create a balance that keeps your travelers happy and bottom line safe? Let’s assess your travel program, so we can show you the ALTOUR way of handling this.
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