Without the elimination of strict rules and regulations and without the ability of computers to track specific data, frequent flyer awards would not be possible. This crafty idea of awarding loyal airlines customers began in 1981 with American airlines. They established the identities (by name and address) of their best customers and offered membership in a frequent flyer program. The frequent flyer awards may be used in the form of discounts on flight prices, free tickets, and privileges at hotels and restaurants that participate in conjunction with the airline.



After American Airlines adopted their AAdvantage program, other airlines followed. United Airlines, TWA, and Delta all started developing their own frequent flyer programs. Most of these programs that the airlines use as customer loyalty incentives are in partnership with certain hotels and car rental places as well as credit card companies. These other businesses benefit significantly from participation with the airlines. There are those hotels and rental companies which were very hesitant to indulge in this type of market strategy because of he expensive cost involved and the idea that the frequent flyer programs were just a gimmick or a fad that would soon die out. Much to these nonparticipating companies' amazement, the hotels and car rentals who were in association with the airline frequent flyer program were smoking them in competition for business. The companies with incentives to offer are the ones that get all the customers.

The programs that these participating airlines offer have more than 100 million members and the members get 10 million awards each year. People react just as positively about frequent flyer programs as low prices, accommodating schedules, and satisfying customer services. People expect discounts on mileage.

Now, there are also some downfalls that come with these frequent flyer programs. According to the IRS rules, if an award is gained during a business trip and then is spent on a personal trip, the award is subject to taxation. However, this regulation is rarely enforced because it is hard to actually apply to a situation. Also, there are people out there who will misuse these flyer tickets and awards. It specifically states in all the airline frequent flyer programs that these awards are not to be sold to other people; they cannot be traded or transferred either. It is illegal to do this and the airline can take legal action against he buyers, sellers, and brokers who made the illegal deal between them. So bear in mind that these tickets are not for sell.

All in all, frequent flyer programs are worthwhile incentives-they keep the loyal customers happy. The airlines that don't have such programs are without a doubt going to have fewer customers. It is just important to remember that all programs have rules they must adhere to. You can go online and learn about the programs.