Airline loyalty programs are designed to incentivize customers to stick with a particular airline by offering rewards and benefits for their travel. These programs are used by airlines to build a customer base and increase customer loyalty, which helps them generate revenue through repeat business and increased brand recognition. SkyMiles, the frequent flyer program of Delta Air Lines, is the world’s most valuable airline loyalty program, according to the On Point Loyalty 2023 Top 100 Most Valuable Airline Loyalty Programs report. top 10 most valuable airline loyalty programs

With an estimated value of more than USD 27 billion, SkyMiles sets a record in the On Point Loyalty ranking. American Airlines AAdvantage comes in second place at more than USD 23 billion, followed by United Airlines’ MileagePlus at over USD 22 billion. Once the best-kept secret of the airline industry, loyalty programs irreversibly stepped onto the center stage of global airline economics during the COVID pandemic, with many airlines banking on their programs for survival. Record-breaking financing structures relied on the profitability and consistency of earnings of airline loyalty programs.

According to Evert de Boer, Managing Partner at On Point Loyalty, “the financial support realized through these programs further strengthened our earlier hypotheses around the value they represent. The valuations we published in early 2020 were corroborated by a number of transactions in the market over the last few years. With COVID largely behind us, now is the time to take stock and reassess the programs’ valuations.”

On Point Loyalty’s research once again examined public information on over 170 airlines around the world, supplemented by proprietary insights to determine an estimated value for each airline’s loyalty program. Over 50 variables relating to the airline, loyalty program, and operating country were incorporated into On Point Loyalty’s proprietary valuation algorithm.

The research identified the top 10 most valuable airline loyalty programs as follows:

The full list of the top 100 programs is available on the website of On Point Loyalty.

Airline loyalty programs

The rewards offered by airline loyalty programs vary, but they often include things like free flights, upgrades to premium seats, priority boarding, and access to airport lounges. Customers can earn rewards by accumulating miles or points for each flight they take with the airline. Some loyalty programs also offer bonus miles or points for spending money with the airline’s partners, such as hotels or rental car companies.

The use of airline loyalty programs has become widespread in the travel industry, as they provide a convenient way for customers to manage their travel expenses and rewards. Customers can often track their rewards and redeem them through a dedicated website or mobile app, making it easy for them to plan their trips and maximize their rewards.

In addition to benefits for the customer, loyalty programs also provide valuable data and insights for airlines. They can track customer behavior and preferences, and use this information to inform their marketing and sales strategies. This can help airlines better understand what their customers are looking for and make improvements to their products and services to meet customer needs.

Overall, airline loyalty programs have become an important part of the travel industry, and they provide significant benefits for both customers and airlines. By offering rewards and benefits, these programs help build customer loyalty and increase revenue for airlines, while also making travel more enjoyable and convenient for customers.

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