Frequent-flyer program

The frequent flyer programs of the major airlines to increase customer loyalty by rewarding frequent use by the same company with discounts in the form of free flights or " premiums ".

Economically referred to this process as the lock-in effect.

When participating in such a program during the periods with an airline miles will be saved and rewarded after reaching a certain amount of premiums. This can be free flights ( free flights ), discounted flights, increasing the booking class ( upgrade), access authorization for lounges, discounts at hotels, golf clubs, restaurants, cable cars, etc., or even kind. At a certain turnover, some companies assign a higher membership level, such as silver or gold or certain names (eg Lufthansa Senator ). In this case the customer (eg chauffeur services) provides further advantages such as higher mileage growth and free services.

Sometimes can be reserved in addition to free seats or extra legroom in exchange for miles courts. Some of these customers will be offered even space on that flight; 'Normal' passengers are then transferred to a later flight. After a certain time accumulated miles or reached membership status may expire.

All major international airlines offer frequent flyer programs. Through agreements between airlines or alliances (eg Star Alliance ), these bonus award miles with other companies or transferred from one society to another. Often, the companies are also working with other companies such as hotels and car rentals. Then also a certain amount of " miles" or points when you purchase a product or service this company will be credited to a customer's account. Participants in the program will usually get a debit card, which they must partially present in the use.

In general, the various frequent flyer programs of airlines that work together, mutually compatible. This applies to Oneworld Alliance Star Alliance and SkyTeam. So you can book the miles were flown with any airline of one of these alliances on the appropriate frequent flyer program of the partner airline, when you are logged; but not always to the same conditions as in the führenen by airline.

Economically put the operators of the popular systems on the expectation that a majority of these points will never be redeemed for goods or services. It is possible to sell miles to brokers. Therefore, in the past it was sometimes legal disputes when trying to jointly exploit points of various participants or to sell them via file sharing networks and auction platforms.

History

As early as 1979 called the airline Texas International, the first such action in life. The concept of a frequent flyer program, but mostly the former head of American Airlines, Robert Crandall attributed. He found out in the early 1980s that five percent of its customers made ​​for 40 percent of sales. On May 1, 1981, AAdvantage program has been introduced. The participants then received with every flight, they could initially only redeem for flights of American Airlines, and later against other premiums. Delta Air Lines ( Skymiles ), TWA ( Aviators ) and United Airlines ( MileagePlus ) followed shortly thereafter with similar programs, British Airways ( Executive Club ) introduced in 1982 a frequent flyer program. Miles & More frequent flyer program of Lufthansa, was launched on 1 January 1993.

Frequent flyer programs of major airlines

Similar programs at railway companies

Based on the frequent flyer programs also several railway companies have launched a frequent traveler program. These include the following:

  • German Bahn AG: bahn.comfort (since 2002) and bahn.bonus (since 2005)
  • Euro star: Euro Star frequent traveler program
  • NS Hispeed: NS Business Card
  • ÖBB passenger AG: ÖBB Bonus
  • Swiss Federal Railways: MobilBonus
  • SNCF: Grand Voyageur
  • Thalys: TheCard

In a RailTeam mentioned Cooperation these frequent traveler programs mentioned above are to be compatible with each other.

In addition, the Austrian private railway western railway part in the Miles & More program. Also in the AIRail trains the German Bahn AG Miles & More - Miles are earned.

Legal problems

However, other companies waive in favor of the employee on such a scheme, and also with freelancers who are traveling for various clients, this is common. Some airlines require, however, that premiums may only be used privately. To resignations in 2002 led the so-called bonus miles affair, in which members of the German Bundestag, including the Green Party Cem Özdemir and the Left politician Gregor Gysi, with official accumulated bonus points by leading private air travel.

In Germany, the airlines can calculate the income tax for reasons of simplicity with a flat tax rate of 2.25 %. Basis, the total undistributed to domestic customers premiums. The amount of the tax rate takes into account that a portion of the premiums does not constitute wages and another part would be exempt because of the discount allowance.

Mileage run

A Mileage run is a flight with the aim to collect as many frequent flyer miles in the shortest possible time. Reasons for this are collecting bonus miles to trade it against air and material costs as well as the (re - ) achieving a status levels.

Others

  • The movie Up in the Air describes, inter alia, the project of a businessman to collect 10 million miles.
  • As the largest real collectors miles to Thomas Stuker who has 5,900 flights reached 10 million -mile limit in MileagePlus of United Airlines from 1982 until the summer of 2011.
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