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Airlines

Airlines Push Subscription Programs as the Next Phase in Loyalty

Dennis Schaal photo
Dennis Schaal

Photo Credit: United offers a subscription program for its Economy Plus seating, assuring up-front revenue for the airline. United Airlines

Skift Take

Elite travelers and big spenders will continue to relish their loyalty awards, but airlines may win even more loyal flyers when carriers sell them subscriptions for preferred seats and other perks.

With airlines such as Delta and United devaluing their miles, making travelers pay more to redeem them, airline subscription programs that offer additional checked bags or preferred seats for up-front, annual fees will become more effective in terms of winning loyal users. Thus argues IdeaWorks Co. in a new mini-report, "Top 10 Things You Need To Know About Ancillary Revenue and Airlines. In fact, the report says,"subscription programs create the best loyalty." While airlines love frequent flyers who stick with their loyalty

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