Rising popularity of airline loyalty programs amid sustainability concerns

Airline loyalty programs, commonly referred to as "frequent flyer" programs, are becoming increasingly popular, as indicated by data requested by NOS. However, a coalition of groups is advocating for a revision of these programs. They propose that the points earned should be redeemable for sustainable purchases instead of encouraging additional flights.

Frequent flyer programs are airline loyalty schemes where passengers earn points for flying. These can be redeemed for benefits like fast boarding and disembarking, access to special airport lounges, rebooking or upgrading to business class. The more one flies, the more rewards one earns, encouraging repeat business and customer loyalty for airlines.

the Netherlands, airline loyalty program memberships have seen substantial growth. According to NOS, Lufthansa's Miles & More has grown from 21,000 to 400,000 members in ten years, while Emirates' Skywards boasts 360,000 Dutch members, a third of whom joined in the last five years. Qatar Airways' Privilege Club reported a tenfold increase in Dutch membership over the same period.

A 2021 report by the Knowledge Institute for Mobility Policy (KiM) reveals that 15 percent of adult Dutch passengers are part of a loyalty program.

The KiM report reveals that frequent flyers, particularly business travelers, are more likely to participate in savings programs offered by airlines. Business travelers also tend to combine both business and leisure flights within the same year, leading to a self-reinforcing effect.

Outgoing Minister Mark Harbers of Infrastructure, in response to parliamentary questions in October, stated that making Dutch frequent flyer programs less attractive might not necessarily lead to a reduction in aviation-related CO2 emissions. He also emphasized that organizations are at liberty to set their own policies in this area, adding, "The government has no say in that."

However, there are contrasting views. Some argue that frequent flyer programs contribute to increased CO2 emissions by incentivizing business travellers to fly more often. "The current system encourages more flying, and it's actually mostly airlines like KLM and their partners that get rich from it,” explained Hugo Houppermans from the Different Travel Coalition (Coalitie Anders Reizen).

He noted that the situation is different in Germany, where it can be determined that the points can only be spent on sustainable items such as insulation or an electric bicycle. He also pointed out that in Germany, these points are taxed.

Odete Pimenta da Silva from the Dutch Association for Travel Management (NATM) expresses skepticism about a tax on these programs. She pointed to "the fatigue and private time that often comes with business travel, where travelers appreciate getting something in return for their efforts." Some NATM members, however, advocate for using travel points for green initiatives.

Meanwhile, the Dutch travel umbrella organization (ANVR) suggested modernizing these programs, "They are somewhat dated. It would be better if one could save for, for example, a free suitcase or an extra meal,” they said.