Are Airline Loyalty Programs Worth It?
Published On Nov 28, 2024, 5:02 AM
Frequent fliers are becoming disillusioned with airline loyalty programs due to recent changes in rewards structures, which have increased the costs needed to maintain elite status. Many travelers who previously prioritized one airline have begun to reconsider their strategies, seeking alternatives and potentially canceling airline credit cards that no longer provide value. This trend suggests that airlines may need to reevaluate their loyalty programs as customers express frustration over devalued rewards and increased spending requirements.
Stock Forecasts
DAL
Negative
With increasing dissatisfaction among frequent fliers about rising costs to maintain loyalty status, airlines may face declining customer retention rates. Additionally, the shift towards reconsidering loyalty could negatively impact revenue from co-branded credit card partnerships, which rely on spending by loyal customers. Overall, the sentiment indicates a challenging environment for airline stocks in the near term, as customer loyalty wanes and competition intensifies.
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