Linking accrual with revenue – a new dynamic model in CLM FFP
Since the beginning of the eighties, when the first Frequent Flyer Program (FFP) was introduced by American Airlines, many changes have occurred in the airline business. Although the traditional model for accrual which is based on the mileage flown by a passenger is still popular, airlines are beginning to acknowledge the opportunity of more closely correlating the fare of the ticket with the actual points credited to FFP members.
