Frequent flyer loyalty programs that reward fliers based on dollars spent versus distance flown will raise costs and create headaches for business travel managers, according to a travel industry survey released Thursday by the Business Travel Coalition (BTC).
According to travel industry executives who participated in the March 2014 survey, there will be public-policy issues and bottom-line cost implications for managed travel programs.
Eighty-two percent of all participants said that as airlines seek to maximize total revenue per passenger and add ancillary fees to traveler financial incentives for the purpose of calculating award points, travel policy will become more difficult to maintain. Managers also said the new programs will result in higher prices paid for their organizations.
- 63 percent of all participants agree that as effects materialize from recent airline industry consolidation, parity at the negotiating table with airlines has been decreased for their organizations.
- 90 percent said that given airline industry consolidation, the U.S. Department of Transportation should be increasingly vigilant in its enforcement responsibilities against unfair and deceptive airline marketing practices
For the report, visit http://btcnews.co/NvDHQ4.