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United Airlines: Frequent Flyer Program

Won-Yong Oh;

商品編號:9B16M037
出版日期:2016/03/14
再版日期:2016/03/14
商品來源:Ivey
商品主題:General Management/Strategy
商品類型:Case (Pub Mat)
涵蓋議題:Airline industry;customer relationship;strategic decision;frequent flyer program;game theory
難易度:4 - Undergraduate/MBA
內容長度:11 頁
地域:United States
產業:Transportation and Warehousing;
事件年度:2015

From 1980 to 2010, frequent flyer programs (FFPs) had evolved from simple customer reward programs to independent profit-generation business models. The airline industry had seen enormous success with FFPs, which had become businesses of their own. In June 2014, however, United Airlines announced that as of March 1, 2015, it would move from awarding miles based on distance flown to awarding miles for dollars spent per ticket, following in the footsteps of Delta Air Lines. According to the new mileage accrual plan, most United Airlines passengers would earn fewer reward miles. Many customers saw this change as a significant devaluation of award miles and complained about United Airlines’ new policy. Who benefited from the revenue-based FFPs and how would the new program affect the behaviour of United Airlines’ customers? Should American Airlines also adopt the revenue-based FFP?

教學手冊:8B16M037;
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