How do loyalty programs primarily benefit onboard service?

Loyalty programs primarily benefit onboard service by incentivizing higher service levels for frequent flyers. These programs reward customers for their loyalty with various perks and benefits, fostering a relationship between the airline and its most valuable passengers. Frequent flyers often have greater expectations for services, such as priority boarding, access to lounges, and enhanced onboard amenities. Airlines respond by providing higher levels of service to these loyal customers to maintain their satisfaction and encourage continued loyalty.

This aligns with the overall goals of loyalty programs, which are designed not just to retain customers, but also to elevate their overall experience, thereby creating a competitive advantage in the industry through improved service delivery. Managers may allocate resources towards enhancing the onboard experience specifically for these loyal customers, reinforcing their commitment to high service levels.