A frequent flyer program (FFP) is a loyalty program offered by many airlines. Typically, airline customers enrolled in the program accumulate points corresponding to the distance flown on that airline. Accrued points (also known as frequent flyer miles) can be redeemed for free air travel; for other goods or services; or for increased benefits, such as airport lounge access or priority bookings.

History

The first modern frequent flyer program was AAdvantage, initiated in May 1981 by American Airlines; it was a modification of a never-realized concept from 1979 that would have given special fares to frequent customers. It was quickly followed later that year by programs from United (Mileage Plus) and Delta (SkyMiles), and in 1982 from British Airways (Executive Club).

Since then, frequent-flyer programs have grown enormously. As of January 2005, a total of 14 trillion frequent-flyer miles had been accumulated by people worldwide, which corresponds to a total value of 700 billion US dollars.

Points accrual

The primary method of obtaining points in a frequent flyer program is to fly with the associated airline. Most systems reward travellers with a specific number of points based on the distance travelled (such as 1 point per mile flown), although systems vary. Many discount airlines, rather than awarding points per mile, award points for flight segments in lieu of distance. In Europe, for example, a number of airlines offer a fixed number of points for domestic or intra-European flights regardless of the distance (but varying according to class of travel). The calculation method can become complicated, with additional points given for flying first or business class, and often fewer points given when flying on discounted tickets.

With the introduction of airline alliances and code-share flights, frequent flyer programs are often extended to allow benefits to be used across partner airlines.

Many programs also allow points to be obtained not just through flying, but by staying at participating hotels, or renting a vehicle from a participating company. Other methods include credit cards that offer points for charges made to the card, and systems which allow restaurant diners to earn miles by eating at participating restaurants.

Programs differ on the expiration of points. Some expire after a fixed time, and others expire if the account is inactive for an extended period (for example, three years). 1

Customer status

Many frequent flyer programs identify travellers who fly more than a few times per year by awarding them different status levels, which in turn give a number of benefits. Status levels vary from scheme to scheme, but benefits can include:

• Access to business and first class lounges with an economy ticket
• Access to other airlines' lounges
• Increased mileage accumulation (such as doubling or tripling)
• Reserving an unoccupied adjacent seat
• The ability to reserve specific seats, such as exit row seats with more leg room
• Free or discounted upgrades to a higher travel class
• Priority in waitlisting or flying standby
• Preference in not being bumped if a flight is oversold
• Priority of luggage (to be prioritized on transphere and to be diplayed on the belt first)
• Ability to grant status to another person