THE CUSTOMERS’ LOYALITY PROGRAMS IMPLEMENTATION OF UKRAINIAN AIRLINES – CARRIERS AS A PLEDGE TO IMPROVE THEIR COMPETITIVENESS
Journal Title: Проблеми системного підходу в економіці - Year 2018, Vol 3, Issue 65
Abstract
There is an increased competition for air passengers at the international air transport market, as well as in Ukraine. The main reason of this is the annual launch of new flights and destinations, the new airlines’ emergence or their entry into the market. Thus, before the air passenger there is a large choice of air carriers in the chosen direction. At the same time, the competitive struggle is particularly acute in the competition between Ukrainian and foreign airlines on international routes because of aviation market specifics in Ukraine. The problem of improving the airline's competitiveness at the air transport market is an actual problem for any airline of the world, especially for those ones which operate at the international air transport market. In order to fight for an air passenger, airlines must not only provide the required level of flight safety, the air transportation cost, service and comfort, but also offer special loyalty programs for constantly flying passengers. The world practice of business activity shows that only an active behavior at the market, constant contact with potential and existing customers is a key to the success of the company. Enterprises need to think about developing the only approach for retaining existing customers and attracting new ones. This is the main task of forming the customers’ loyalty. In order to fight for an air passenger, aviation companies should not only provide the required level of flight safety, the air transportation cost, service and comfort, but also offer special loyalty programs for constantly flying passengers. Thus, in order to attract new customers, airlines develop and implement innovations in the form of bonus programs for regular customers. A bonus program is a program to encourage passengers to increase the loyalty of air travelers to a specific airline or air carriers’ alliance. The principle of bonus programs is to attract new customers and to maintain the existing customers of the company. Unfortunately, it should be noted that not all Ukrainian airlines introduce such loyalty programs. On the one hand, this occurs because of the lack or limited competition on the directions they carry out their flights, most of them are charter flights, and, on the other hand, because of the desire to get an additional profit from the privileges provided to interested passengers on a cash basis. At the same time, the competition of Ukrainian airlines – carriers is based mainly on the price factor. On the other hand, the growing competition and the international airlines' access to Ukraine's aviation market, which offer loyalty programs to their customers, can lead to a loading decrease at the flights of Ukrainian airlines. Thus, Ukrainian airlines – carriers, in order to maintain their existing positions in the Ukrainian market, especially on routes of interest for the leading world airlines entering the Ukrainian market, it is necessary, taking into account world experience, to develop and implement their own or joint loyalty programs with global alliances which are an important tool not only for existing customers’ retaining but also for new passengers’ encouraging.There is an increased competition for air passengers at the international air transport market, as well as in Ukraine. The main reason of this is the annual launch of new flights and destinations, the new airlines’ emergence or their entry into the market. Thus, before the air passenger there is a large choice of air carriers in the chosen direction. At the same time, the competitive struggle is particularly acute in the competition between Ukrainian and foreign airlines on international routes because of aviation market specifics in Ukraine. The problem of improving the airline's competitiveness at the air transport market is an actual problem for any airline of the world, especially for those ones which operate at the international air transport market. In order to fight for an air passenger, airlines must not only provide the required level of flight safety, the air transportation cost, service and comfort, but also offer special loyalty programs for constantly flying passengers. The world practice of business activity shows that only an active behavior at the market, constant contact with potential and existing customers is a key to the success of the company. Enterprises need to think about developing the only approach for retaining existing customers and attracting new ones. This is the main task of forming the customers’ loyalty. In order to fight for an air passenger, aviation companies should not only provide the required level of flight safety, the air transportation cost, service and comfort, but also offer special loyalty programs for constantly flying passengers. Thus, in order to attract new customers, airlines develop and implement innovations in the form of bonus programs for regular customers. A bonus program is a program to encourage passengers to increase the loyalty of air travelers to a specific airline or air carriers’ alliance. The principle of bonus programs is to attract new customers and to maintain the existing customers of the company. Unfortunately, it should be noted that not all Ukrainian airlines introduce such loyalty programs. On the one hand, this occurs because of the lack or limited competition on the directions they carry out their flights, most of them are charter flights, and, on the other hand, because of the desire to get an additional profit from the privileges provided to interested passengers on a cash basis. At the same time, the competition of Ukrainian airlines – carriers is based mainly on the price factor. On the other hand, the growing competition and the international airlines' access to Ukraine's aviation market, which offer loyalty programs to their customers, can lead to a loading decrease at the flights of Ukrainian airlines. Thus, Ukrainian airlines – carriers, in order to maintain their existing positions in the Ukrainian market, especially on routes of interest for the leading world airlines entering the Ukrainian market, it is necessary, taking into account world experience, to develop and implement their own or joint loyalty programs with global alliances which are an important tool not only for existing customers’ retaining but also for new passengers’ encouraging.There is an increased competition for air passengers at the international air transport market, as well as in Ukraine. The main reason of this is the annual launch of new flights and destinations, the new airlines’ emergence or their entry into the market. Thus, before the air passenger there is a large choice of air carriers in the chosen direction. At the same time, the competitive struggle is particularly acute in the competition between Ukrainian and foreign airlines on international routes because of aviation market specifics in Ukraine. The problem of improving the airline's competitiveness at the air transport market is an actual problem for any airline of the world, especially for those ones which operate at the international air transport market. In order to fight for an air passenger, airlines must not only provide the required level of flight safety, the air transportation cost, service and comfort, but also offer special loyalty programs for constantly flying passengers. The world practice of business activity shows that only an active behavior at the market, constant contact with potential and existing customers is a key to the success of the company. Enterprises need to think about developing the only approach for retaining existing customers and attracting new ones. This is the main task of forming the customers’ loyalty. In order to fight for an air passenger, aviation companies should not only provide the required level of flight safety, the air transportation cost, service and comfort, but also offer special loyalty programs for constantly flying passengers. Thus, in order to attract new customers, airlines develop and implement innovations in the form of bonus programs for regular customers. A bonus program is a program to encourage passengers to increase the loyalty of air travelers to a specific airline or air carriers’ alliance. The principle of bonus programs is to attract new customers and to maintain the existing customers of the company. Unfortunately, it should be noted that not all Ukrainian airlines introduce such loyalty programs. On the one hand, this occurs because of the lack or limited competition on the directions they carry out their flights, most of them are charter flights, and, on the other hand, because of the desire to get an additional profit from the privileges provided to interested passengers on a cash basis. At the same time, the competition of Ukrainian airlines – carriers is based mainly on the price factor. On the other hand, the growing competition and the international airlines' access to Ukraine's aviation market, which offer loyalty programs to their customers, can lead to a loading decrease at the flights of Ukrainian airlines. Thus, Ukrainian airlines – carriers, in order to maintain their existing positions in the Ukrainian market, especially on routes of interest for the leading world airlines entering the Ukrainian market, it is necessary, taking into account world experience, to develop and implement their own or joint loyalty programs with global alliances which are an important tool not only for existing customers’ retaining but also for new passengers’ encouraging.There is an increased competition for air passengers at the international air transport market, as well as in Ukraine. The main reason of this is the annual launch of new flights and destinations, the new airlines’ emergence or their entry into the market. Thus, before the air passenger there is a large choice of air carriers in the chosen direction. At the same time, the competitive struggle is particularly acute in the competition between Ukrainian and foreign airlines on international routes because of aviation market specifics in Ukraine. The problem of improving the airline's competitiveness at the air transport market is an actual problem for any airline of the world, especially for those ones which operate at the international air transport market. In order to fight for an air passenger, airlines must not only provide the required level of flight safety, the air transportation cost, service and comfort, but also offer special loyalty programs for constantly flying passengers. The world practice of business activity shows that only an active behavior at the market, constant contact with potential and existing customers is a key to the success of the company. Enterprises need to think about developing the only approach for retaining existing customers and attracting new ones. This is the main task of forming the customers’ loyalty. In order to fight for an air passenger, aviation companies should not only provide the required level of flight safety, the air transportation cost, service and comfort, but also offer special loyalty programs for constantly flying passengers. Thus, in order to attract new customers, airlines develop and implement innovations in the form of bonus programs for regular customers. A bonus program is a program to encourage passengers to increase the loyalty of air travelers to a specific airline or air carriers’ alliance. The principle of bonus programs is to attract new customers and to maintain the existing customers of the company. Unfortunately, it should be noted that not all Ukrainian airlines introduce such loyalty programs. On the one hand, this occurs because of the lack or limited competition on the directions they carry out their flights, most of them are charter flights, and, on the other hand, because of the desire to get an additional profit from the privileges provided to interested passengers on a cash basis. At the same time, the competition of Ukrainian airlines – carriers is based mainly on the price factor. On the other hand, the growing competition and the international airlines' access to Ukraine's aviation market, which offer loyalty programs to their customers, can lead to a loading decrease at the flights of Ukrainian airlines. Thus, Ukrainian airlines – carriers, in order to maintain their existing positions in the Ukrainian market, especially on routes of interest for the leading world airlines entering the Ukrainian market, it is necessary, taking into account world experience, to develop and implement their own or joint loyalty programs with global alliances which are an important tool not only for existing customers’ retaining but also for new passengers’ encouraging.There is an increased competition for air passengers at the international air transport market, as well as in Ukraine. The main reason of this is the annual launch of new flights and destinations, the new airlines’ emergence or their entry into the market. Thus, before the air passenger there is a large choice of air carriers in the chosen direction. At the same time, the competitive struggle is particularly acute in the competition between Ukrainian and foreign airlines on international routes because of aviation market specifics in Ukraine. The problem of improving the airline's competitiveness at the air transport market is an actual problem for any airline of the world, especially for those ones which operate at the international air transport market. In order to fight for an air passenger, airlines must not only provide the required level of flight safety, the air transportation cost, service and comfort, but also offer special loyalty programs for constantly flying passengers. The world practice of business activity shows that only an active behavior at the market, constant contact with potential and existing customers is a key to the success of the company. Enterprises need to think about developing the only approach for retaining existing customers and attracting new ones. This is the main task of forming the customers’ loyalty. In order to fight for an air passenger, aviation companies should not only provide the required level of flight safety, the air transportation cost, service and comfort, but also offer special loyalty programs for constantly flying passengers. Thus, in order to attract new customers, airlines develop and implement innovations in the form of bonus programs for regular customers. A bonus program is a program to encourage passengers to increase the loyalty of air travelers to a specific airline or air carriers’ alliance. The principle of bonus programs is to attract new customers and to maintain the existing customers of the company. Unfortunately, it should be noted that not all Ukrainian airlines introduce such loyalty programs. On the one hand, this occurs because of the lack or limited competition on the directions they carry out their flights, most of them are charter flights, and, on the other hand, because of the desire to get an additional profit from the privileges provided to interested passengers on a cash basis. At the same time, the competition of Ukrainian airlines – carriers is based mainly on the price factor. On the other hand, the growing competition and the international airlines' access to Ukraine's aviation market, which offer loyalty programs to their customers, can lead to a loading decrease at the flights of Ukrainian airlines. Thus, Ukrainian airlines – carriers, in order to maintain their existing positions in the Ukrainian market, especially on routes of interest for the leading world airlines entering the Ukrainian market, it is necessary, taking into account world experience, to develop and implement their own or joint loyalty programs with global alliances which are an important tool not only for existing customers’ retaining but also for new passengers’ encouraging.There is an increased competition for air passengers at the international air transport market, as well as in Ukraine. The main reason of this is the annual launch of new flights and destinations, the new airlines’ emergence or their entry into the market. Thus, before the air passenger there is a large choice of air carriers in the chosen direction. At the same time, the competitive struggle is particularly acute in the competition between Ukrainian and foreign airlines on international routes because of aviation market specifics in Ukraine. The problem of improving the airline's competitiveness at the air transport market is an actual problem for any airline of the world, especially for those ones which operate at the international air transport market. In order to fight for an air passenger, airlines must not only provide the required level of flight safety, the air transportation cost, service and comfort, but also offer special loyalty programs for constantly flying passengers. The world practice of business activity shows that only an active behavior at the market, constant contact with potential and existing customers is a key to the success of the company. Enterprises need to think about developing the only approach for retaining existing customers and attracting new ones. This is the main task of forming the customers’ loyalty. In order to fight for an air passenger, aviation companies should not only provide the required level of flight safety, the air transportation cost, service and comfort, but also offer special loyalty programs for constantly flying passengers. Thus, in order to attract new customers, airlines develop and implement innovations in the form of bonus programs for regular customers. A bonus program is a program to encourage passengers to increase the loyalty of air travelers to a specific airline or air carriers’ alliance. The principle of bonus programs is to attract new customers and to maintain the existing customers of the company. Unfortunately, it should be noted that not all Ukrainian airlines introduce such loyalty programs. On the one hand, this occurs because of the lack or limited competition on the directions they carry out their flights, most of them are charter flights, and, on the other hand, because of the desire to get an additional profit from the privileges provided to interested passengers on a cash basis. At the same time, the competition of Ukrainian airlines – carriers is based mainly on the price factor. On the other hand, the growing competition and the international airlines' access to Ukraine's aviation market, which offer loyalty programs to their customers, can lead to a loading decrease at the flights of Ukrainian airlines. Thus, Ukrainian airlines – carriers, in order to maintain their existing positions in the Ukrainian market, especially on routes of interest for the leading world airlines entering the Ukrainian market, it is necessary, taking into account world experience, to develop and implement their own or joint loyalty programs with global alliances which are an important tool not only for existing customers’ retaining but also for new passengers’ encouraging.There is an increased competition for air passengers at the international air transport market, as well as in Ukraine. The main reason of this is the annual launch of new flights and destinations, the new airlines’ emergence or their entry into the market. Thus, before the air passenger there is a large choice of air carriers in the chosen direction. At the same time, the competitive struggle is particularly acute in the competition between Ukrainian and foreign airlines on international routes because of aviation market specifics in Ukraine. The problem of improving the airline's competitiveness at the air transport market is an actual problem for any airline of the world, especially for those ones which operate at the international air transport market. In order to fight for an air passenger, airlines must not only provide the required level of flight safety, the air transportation cost, service and comfort, but also offer special loyalty programs for constantly flying passengers. The world practice of business activity shows that only an active behavior at the market, constant contact with potential and existing customers is a key to the success of the company. Enterprises need to think about developing the only approach for retaining existing customers and attracting new ones. This is the main task of forming the customers’ loyalty. In order to fight for an air passenger, aviation companies should not only provide the required level of flight safety, the air transportation cost, service and comfort, but also offer special loyalty programs for constantly flying passengers. Thus, in order to attract new customers, airlines develop and implement innovations in the form of bonus programs for regular customers. A bonus program is a program to encourage passengers to increase the loyalty of air travelers to a specific airline or air carriers’ alliance. The principle of bonus programs is to attract new customers and to maintain the existing customers of the company. Unfortunately, it should be noted that not all Ukrainian airlines introduce such loyalty programs. On the one hand, this occurs because of the lack or limited competition on the directions they carry out their flights, most of them are charter flights, and, on the other hand, because of the desire to get an additional profit from the privileges provided to interested passengers on a cash basis. At the same time, the competition of Ukrainian airlines – carriers is based mainly on the price factor. On the other hand, the growing competition and the international airlines' access to Ukraine's aviation market, which offer loyalty programs to their customers, can lead to a loading decrease at the flights of Ukrainian airlines. Thus, Ukrainian airlines – carriers, in order to maintain their existing positions in the Ukrainian market, especially on routes of interest for the leading world airlines entering the Ukrainian market, it is necessary, taking into account world experience, to develop and implement their own or joint loyalty programs with global alliances which are an important tool not only for existing customers’ retaining but also for new passengers’ encouraging.There is an increased competition for air passengers at the international air transport market, as well as in Ukraine. The main reason of this is the annual launch of new flights and destinations, the new airlines’ emergence or their entry into the market. Thus, before the air passenger there is a large choice of air carriers in the chosen direction. At the same time, the competitive struggle is particularly acute in the competition between Ukrainian and foreign airlines on international routes because of aviation market specifics in Ukraine. The problem of improving the airline's competitiveness at the air transport market is an actual problem for any airline of the world, especially for those ones which operate at the international air transport market. In order to fight for an air passenger, airlines must not only provide the required level of flight safety, the air transportation cost, service and comfort, but also offer special loyalty programs for constantly flying passengers. The world practice of business activity shows that only an active behavior at the market, constant contact with potential and existing customers is a key to the success of the company. Enterprises need to think about developing the only approach for retaining existing customers and attracting new ones. This is the main task of forming the customers’ loyalty. In order to fight for an air passenger, aviation companies should not only provide the required level of flight safety, the air transportation cost, service and comfort, but also offer special loyalty programs for constantly flying passengers. Thus, in order to attract new customers, airlines develop and implement innovations in the form of bonus programs for regular customers. A bonus program is a program to encourage passengers to increase the loyalty of air travelers to a specific airline or air carriers’ alliance. The principle of bonus programs is to attract new customers and to maintain the existing customers of the company. Unfortunately, it should be noted that not all Ukrainian airlines introduce such loyalty programs. On the one hand, this occurs because of the lack or limited competition on the directions they carry out their flights, most of them are charter flights, and, on the other hand, because of the desire to get an additional profit from the privileges provided to interested passengers on a cash basis. At the same time, the competition of Ukrainian airlines – carriers is based mainly on the price factor. On the other hand, the growing competition and the international airlines' access to Ukraine's aviation market, which offer loyalty programs to their customers, can lead to a loading decrease at the flights of Ukrainian airlines. Thus, Ukrainian airlines – carriers, in order to maintain their existing positions in the Ukrainian market, especially on routes of interest for the leading world airlines entering the Ukrainian market, it is necessary, taking into account world experience, to develop and implement their own or joint loyalty programs with global alliances which are an important tool not only for existing customers’ retaining but also for new passengers’ encouraging.There is an increased competition for air passengers at the international air transport market, as well as in Ukraine. The main reason of this is the annual launch of new flights and destinations, the new airlines’ emergence or their entry into the market. Thus, before the air passenger there is a large choice of air carriers in the chosen direction. At the same time, the competitive struggle is particularly acute in the competition between Ukrainian and foreign airlines on international routes because of aviation market specifics in Ukraine. The problem of improving the airline's competitiveness at the air transport market is an actual problem for any airline of the world, especially for those ones which operate at the international air transport market. In order to fight for an air passenger, airlines must not only provide the required level of flight safety, the air transportation cost, service and comfort, but also offer special loyalty programs for constantly flying passengers. The world practice of business activity shows that only an active behavior at the market, constant contact with potential and existing customers is a key to the success of the company. Enterprises need to think about developing the only approach for retaining existing customers and attracting new ones. This is the main task of forming the customers’ loyalty. In order to fight for an air passenger, aviation companies should not only provide the required level of flight safety, the air transportation cost, service and comfort, but also offer special loyalty programs for constantly flying passengers. Thus, in order to attract new customers, airlines develop and implement innovations in the form of bonus programs for regular customers. A bonus program is a program to encourage passengers to increase the loyalty of air travelers to a specific airline or air carriers’ alliance. The principle of bonus programs is to attract new customers and to maintain the existing customers of the company. Unfortunately, it should be noted that not all Ukrainian airlines introduce such loyalty programs. On the one hand, this occurs because of the lack or limited competition on the directions they carry out their flights, most of them are charter flights, and, on the other hand, because of the desire to get an additional profit from the privileges provided to interested passengers on a cash basis. At the same time, the competition of Ukrainian airlines – carriers is based mainly on the price factor. On the other hand, the growing competition and the international airlines' access to Ukraine's aviation market, which offer loyalty programs to their customers, can lead to a loading decrease at the flights of Ukrainian airlines. Thus, Ukrainian airlines – carriers, in order to maintain their existing positions in the Ukrainian market, especially on routes of interest for the leading world airlines entering the Ukrainian market, it is necessary, taking into account world experience, to develop and implement their own or joint loyalty programs with global alliances which are an important tool not only for existing customers’ retaining but also for new passengers’ encouraging.There is an increased competition for air passengers at the international air transport market, as well as in Ukraine. The main reason of this is the annual launch of new flights and destinations, the new airlines’ emergence or their entry into the market. Thus, before the air passenger there is a large choice of air carriers in the chosen direction. At the same time, the competitive struggle is particularly acute in the competition between Ukrainian and foreign airlines on international routes because of aviation market specifics in Ukraine. The problem of improving the airline's competitiveness at the air transport market is an actual problem for any airline of the world, especially for those ones which operate at the international air transport market. In order to fight for an air passenger, airlines must not only provide the required level of flight safety, the air transportation cost, service and comfort, but also offer special loyalty programs for constantly flying passengers. The world practice of business activity shows that only an active behavior at the market, constant contact with potential and existing customers is a key to the success of the company. Enterprises need to think about developing the only approach for retaining existing customers and attracting new ones. This is the main task of forming the customers’ loyalty. In order to fight for an air passenger, aviation companies should not only provide the required level of flight safety, the air transportation cost, service and comfort, but also offer special loyalty programs for constantly flying passengers. Thus, in order to attract new customers, airlines develop and implement innovations in the form of bonus programs for regular customers. A bonus program is a program to encourage passengers to increase the loyalty of air travelers to a specific airline or air carriers’ alliance. The principle of bonus programs is to attract new customers and to maintain the existing customers of the company. Unfortunately, it should be noted that not all Ukrainian airlines introduce such loyalty programs. On the one hand, this occurs because of the lack or limited competition on the directions they carry out their flights, most of them are charter flights, and, on the other hand, because of the desire to get an additional profit from the privileges provided to interested passengers on a cash basis. At the same time, the competition of Ukrainian airlines – carriers is based mainly on the price factor. On the other hand, the growing competition and the international airlines' access to Ukraine's aviation market, which offer loyalty programs to their customers, can lead to a loading decrease at the flights of Ukrainian airlines. Thus, Ukrainian airlines – carriers, in order to maintain their existing positions in the Ukrainian market, especially on routes of interest for the leading world airlines entering the Ukrainian market, it is necessary, taking into account world experience, to develop and implement their own or joint loyalty programs with global alliances which are an important tool not only for existing customers’ retaining but also for new passengers’ encouraging.
Authors and Affiliations
V. Yu. Pavelko
Keywords
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