What's happened
Frequent-flyer schemes influence travel decisions, with some passengers opting for longer, more expensive routes to maintain elite status. Ryanair's CEO criticizes loyalty schemes, contrasting the airline's approach. A study reveals that extra costs can make budget airlines more expensive than competitors.
Why it matters
The impact of frequent-flyer schemes on travel choices raises concerns about environmental damage and suboptimal decision-making. Criticism from Ryanair's CEO highlights differing airline strategies. The study's findings suggest that budget airlines may not always offer the best value for travelers.
What the papers say
Simon Calder discusses how frequent-flyer schemes can distort rational choices, impacting both travelers and businesses. Michael O'Leary's comments in The Independent reveal Ryanair's disdain for loyalty schemes, citing added complexity and perceived value extraction by passengers. A study by consumer group Which? analyzed flight prices, revealing that extra costs can make budget airlines more expensive than competitors.
How we got here
Frequent-flyer schemes are powerful incentives for travelers, offering future free flights and elite status maintenance. Ryanair's CEO's criticism of loyalty schemes contrasts with other airlines' strategies to reward frequent flyers. The study by Which? compared flight prices, highlighting how additional costs can affect the overall value of budget airlines.
Common question
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Ryanair DAC is an Irish budget airline founded in 1984, headquartered in Swords, Dublin, with its primary operational bases at Dublin and London Stansted airports.
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EasyJet plc, styled as easyJet, is a British low-cost airline group headquartered at London Luton Airport. It operates domestic and international scheduled services on over 1,000 routes in more than 30 countries via its affiliate airlines EasyJet UK, Easy
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Wizz Air, legally incorporated as Wizz Air Hungary Ltd. and stylised as W!ZZ Air, is a Hungarian ultra low-cost airline with its head office in Budapest.
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British Airways is the flag carrier airline of the United Kingdom, headquartered in London, England, near its main hub at Heathrow Airport. It is the second largest airline in the United Kingdom, based on fleet size and passengers carried, behind easyJet.
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Jet2.com Limited, also known simply as Jet2, is a British low-cost leisure airline offering scheduled and charter flights from the United Kingdom. As of 2019, it is the third-largest scheduled airline in the UK, behind EasyJet and British Airways.
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Michael Kevin O'Leary is the Chief Executive Officer of Ryanair. He is one of Ireland's wealthiest businessmen.