Loyalty Unscripted: Relationship or Commodity?

The Decision Brief SKIFT AVIATION FORUM Tiffany Funk, Head of Flying Blue, Air France-KLMGilbert Ott, Director of Loyalty, oneworld Moderated by Brian Sumers, Editor, The Airline Observer THE TAKEAWAY Airline loyalty programs must make rewards easier to use while protecting the commercial value of the seats customers redeem. Air France-KLM’s Tiffany Funk and oneworld’s Gilbert Ott said closer coordination with revenue management, more flexible partner pricing, and clearer reward offers could help airlines balance customer expectations with sustainable program economics. PATHS FORWARD Align loyalty and revenue management around shared goals. Funk described how Flying Blue works with airline revenue management to balance reward availability, commercial performance, and customer value. Update how airline partners price reward seats. Ott said longstanding fixed-price agreements can limit the availability of seats for loyalty members. More flexible pricing could give travelers additional redemption options while preserving value for participating airlines. Make the value of rewards easier to understand. Funk emphasized transparent entry-level redemption pricing and rewards customers can realistically obtain. Ott described how airline alliances expand the destinations and benefits available to loyalty members. WHAT TO WATCH Whether loyalty programs can sustain their appeal as rewards become more expensive. Airlines must balance the cost of offering attractive rewards with customers’ expectations of what their points are worth. The test will be whether travelers continue to see enough value in their rewards to remain loyal. Whether AI changes how travelers find and compare rewards. Funk said Flying Blue is participating in a Google pilot exploring loyalty-award discovery, while acknowledging that the implications of AI agents remain uncertain. Ott sees an opportunity for loyalty benefits to influence travel choices earlier in the booking process.