An Exploratory Study on Loyalty Programs in Aviation

The provided document is a comprehensive study on loyalty programs in aviation, specifically focusing on British Airways' loyalty scheme. The study aims to understand the effectiveness of loyalty programs in driving customer loyalty and retention. It explores various aspects, including the types of loyalty schemes offered by airlines, the impact of loyalty programs on customers' purchasing decisions, and the level of satisfaction among loyalty program members. The study also investigates the relationship between loyalty programs and customer engagement, as well as the influence of other aviation firms' loyalty schemes on customers' perceptions. Ultimately, the research aims to provide insights for airlines to develop more effective loyalty programs that enhance customer loyalty and retention.

DISSERTATION
(Impact of loyalty scheme on tourist fidelity towards the
aviation industry)

ABSTRACT
This study examines impact of loyalty scheme on Leisure travellers in aviation industry. Loyalty
schemes are beneficial in order to raise brand image of company and increasing satisfaction level
of consumers towards brand. This research takes support of SPSS in order to analyses data.
Several calculations have been performed in order to answer research questions, that includes
correlation, regression etc. The finding shows that LPs are essential for enhancing loyalty of
consumers in business and retaining them in company for longer duration. British Airways is
required to make changes in its existing schemes and have to design some attractive LP so that
more people can take interest. This would be beneficial in order to raising demand of products
and services of BA.

TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION....................................................................................................3
Background of study....................................................................................................................3
Research aim and objectives........................................................................................................4
Rationale of study........................................................................................................................5
Significance of study...................................................................................................................5
Research specification.................................................................................................................6
Chapter structure..........................................................................................................................6
CHAPTER 2: LITERATURE REVIEW.........................................................................................7
Introduction..................................................................................................................................7
Literature review..........................................................................................................................7
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................15
Introduction................................................................................................................................15
Research philosophy..................................................................................................................15
Research design.........................................................................................................................16
Research approach.....................................................................................................................16
Research strategy.......................................................................................................................17
Data Collection..........................................................................................................................18
Sampling....................................................................................................................................19
Data Analyses............................................................................................................................20
Reliability and validity..............................................................................................................21
Ethical consideration.................................................................................................................21
CHAPTER 4: DATA ANALYSES...............................................................................................23
Introduction................................................................................................................................23
Data Analyses............................................................................................................................23
CHAPTER 5: CONCLUSION AND RECOMMENDATION.....................................................39
Conclusion.................................................................................................................................39
Recommendations......................................................................................................................41
Limitation of study....................................................................................................................41
REFERENCES..............................................................................................................................42
APPENDIX....................................................................................................................................45

DECLARATION
I hereby declare that this thesis “impact of loyalty scheme on Leisure travellers: A study on
British Airways” is my original work. I have taken support of books, articles and websites. I
acknowledge these materials at respective place in text.
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ACKNOWLEDGMENT
I sincerely thanks to my professor for their guidance and support, without their presence I would
not be able to complete this thesis on time. I wish to express my sincere gratitude to my friends
and families for their moral support and invaluable suggestions. Special thanks to colleagues for
their heartfelt love and encouragement.
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CHAPTER 1: INTRODUCTION
Background of study
Loyalty and reward schemes are essential elements that influence the consumer’s
purchasing decision. Customer loyalty is the most essential element that assists enterprises in
gaining competitive advantage and raising brand image to a great extent (Kumar and Reinartz,
2018). In the recent years, companies are facing high competition that creates difficulty for
organisations to sustain in market for longer duration. For gaining attention of consumers,
entities offer variety of rewards and discounts to clients. Airline industry has become the major
source of economic development in nation. There are many aviation firms such as British
Airways, Jet Airways, etc. which are offering amazing travel services to travellers (Jiang and
Zhang, 2016). Leisure travellers are the travellers those like to go on trip for leisure purpose.
These people look upon the location, price, dining options, etc. services before going on any
holiday. They like to enjoy their quality time with family and friends thus, plan to go on holiday
to the amazing places. They always prefer to get relaxing experiences that can give unique
experiences from their daily life. Such kind of loyalty schemes is beneficial for the companies to
attract these leisure travellers towards the brand. These travellers ensure that they go on most
amazing place at reasonable place. Loyalty schemes make them positive towards the firm and
influence their decision making significantly.
Frequent flyer (FFPs) loyalty scheme has been introduced by many aviation enterprises in
which companies offer free travel benefits to consumers. Furthermore, FFP also provides
upgraded services to buyers so that they would feel satisfied and become frequent buyers of
business. Loyalty scheme impacts on tourist fidelity towards aviation industry as it is beneficial
in retaining consumers in the firm for longer duration. By this, companies can raise their overall
revenue by 15%. Furthermore, such types of schemes are helpful in increasing business value
and reducing unprofitable customers (Araujo and Kjellberg, 2016).
Loyalty schemes are helpful in raising communication with consumers. Each firm aims to
enhance coordination with consumers so that it can identify their needs and offer those products
and services accordingly. Loyalty schemes support airline industry in building bonds with
travellers and offering them travel services as per their wants. This makes them frequent buyers
and they give positive reviews to others. This aids in increasing sales of business and raising its
brand image as well (Gandomi and Zolfaghari, 2018). Many consumers actively participate in
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reward scheme. They like to get discounts, recognition, etc. Applying reward scheme in aviation
industry is helpful in gaining the faith of consumers. Airline companies can offer special meal
and discounts to users that may help in gaining attention of travellers and support in making
them frequent buyer of business. Over a period of time, sales of airline companies have reduced
to a great extent (Customers Are Driving the Need to Evolve Airline Loyalty Scheme, 2018). The
major reason of declining sales is that people are not satisfied with services and they do not get
any additional benefits. In order to retain people in the firm for longer duration, companies are
required to attract them by designing loyalty scheme.
The present study is based on British Airways (BA) which is the leading largest airline
firm in UK. Recently, entity is offering its services in approx. 183 destinations. Its slogan “to fly,
to serve” is very popular and gain attention of consumers. In the year 2016, BA has generated
11443 million revenues and its net income was near 1473 million (British Airways Plc, 2017).
The main agenda of British Airways is to expand business and offer high quality services to
travellers so that they would feel satisfied and can be retained in firm for longer duration.
Current research paper will discuss the effectiveness of loyalty schemes in order to increase
satisfaction level of consumers and for retaining them in business for longer duration. It will
review other literatures on the same topic as well.
A consumer loyalty program is basically a reward program that can be given by British
Airways to their consumers who are making frequent purchases. They can provide their
consumer with free coupons, rewards or even advanced released products. This can support them
in creating consumer loyalty. Creating consumer loyalty is most important as customer who are
loyal spent more than others. Making use of such loyalty schemes will be more beneficial for
firm as it will attract more customers towards them and increase their profit and revenue. Also by
applying loyalty schemes consumer will pay more attention towards the firm for the products,
they are offering.
Research aim and objectives
Aim
“To identify the impact of loyalty scheme on Leisure travellers”- A study of British Airways
Research Objectives
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 To measure the effectiveness of loyalty scheme in market
 To determine significance of stakeholders and Leisure travellers’ loyalty for British
Airways
 To determine the impact of loyalty development programme on tourist allegiances of
British Airways
Research questions
 What are the beneficial of loyalty problems for British airways?
By answering this question, scholar will be able to find out actual advantage of offering
loyalty schemes to travellers.
 Does a loyalty scheme influence the mind of travellers?
By answering this question researcher would be able to find out factors that affect buying
decision of travellers.
Rationale of study
Scholar aims to work in aviation firm and want to get good knowledge about needs of
travellers, this has increased the interest of researcher on this topic. Thus, individual has chosen
this topic for the investigation (Eilat, Gilo and Sagi, 2016). Tourism industry is the major source
of economic development in nation. Over a period of time, sales of aviation companies has
decreased with rapid speed. People always move towards other firms that offer them satisfactory
services. Thus, this topic has been selected so that actual cause of decreasing sales can be
identified and suitable solution can be provided so that aviation industry can gain more profit.
Significance of study
The dissertation will be beneficial for the hospitality businesses because by this way they
will get idea about needs of Leisure travellers’ and will be able to design their products
according to their requirements. This study is beneficial for the airline firms because they will
get brief idea about how they can attract more travellers. By this way, these firms can offer
attractive services to travellers and will be able to retain them in business for longer duration.
Furthermore, study will help British Airways in attracting more consumers by designing amazing
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loyalty schemes (Customers Are Driving the Need to Evolve Airline Loyalty Scheme, 2018). This
would assist BA in increasing its revenues and improving brand image of the firm. Research
paper will be significant for other scholars because by reviewing this study, they will get a brief
idea about loyalty schemes and the way it impacts on business. It would support investigators in
conducting investigation on same subject matter in the future. Tourism industry contributes well
in the economic development of nation. Thus, by carrying out this dissertation, scholar will give
several recommendations so that aviation firms can attract more people (Meyer-Waarden, 2015).
This would help in increasing their profitability and so, it will help in increasing the economic
value of nation.
Research specification
Present study will take support of positivism philosophy that would help in framing
hypothesis and testing these assumptions (Creswell and Poth, 2017). Furthermore, dissertation
will collect data from primary sources and will apply questionnaire technique in order to gather
insight details related to loyalty schemes and its impact on British Airways. Research paper will
apply thematic analysis and statistics as well in order to evaluate data and finding actual facts
related to the subject matter.
Chapter structure
The dissertation will consist of various chapters, these are described as below:
Chapter 1: Introduction: It would be the first part of study in which scholar will give brief
overview of topic and will describe rationale of conducting this investigation. Furthermore,
session will include significance of research and will frame the aim and objectives (Customers
Are Driving the Need to Evolve Airline Loyalty Scheme, 2018).
Chapter 2: Literature Review: Next part of this dissertation will review the previous literatures.
This will help in developing in-depth understanding about the topic. Articles of other scholars
will be involved in this section.
Chapter 3: Research Methodology: This part will cover various tools and techniques that are
helpful in conducting research in an efficient manner and generating valid results. Justification
for each selected method will be given and its suitability for present research will be described as
well.
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Chapter 4: Data Analysis: This is the next part of dissertation in which scholar will analyse data
and evaluate facts related to topic (Eilat, Gilo and Sagi, 2016). Themes and statistics will be used
to analyse the information related to impact of loyalty scheme on tourist fidelity towards aviation
industry.
Chapter 5: Conclusion: This section will summarise entire study and will give necessary
recommendations through which loyalty schemes can be made more effective for attracting more
tourists towards British Airways.
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CHAPTER 2: LITERATURE REVIEW
Introduction
Literature Review can be defined as comprehensive summary of articles that have been
prepared by other authors. There are many authors those who have conducted investigation on
same topic. Researcher takes support of their thesis and reviews these articles. This supports in
developing understanding of scholar and aid in answering the research questions. This chapter
will review articles related to effectiveness of loyalty scheme, significance of stakeholders and
Leisure travellers’ loyalty.
Literature review
Effectiveness of loyalty scheme
As per the view of McCall and McMahon, (2016) trust and loyalty are two essential
factors that supports business in gaining success. Each company whether it is large or small
provides little extra incentives or attractive facilities to its consumers in order to make them loyal
towards brand. Customer loyalty schemes are very effective in order to enhance satisfaction level
of customers and retain them in business for longer duration. Loyalty schemes are able to build
emotional connection with the customers. This aids the company in enhancing their engagement
and raising brand image of the organisation.
Chhabra, (2017) argued that building strong relationship with buyers is very important
for the growth of firm, if entity fails to develop bonding with its potential buyers then it would
not be able to sustain in market for longer duration. In the competitive era, each firm offers
attractive facilities to its clients so that they feel happy and become frequent buyer of the
company. Building relationship is the tricky issue. Good loyalty schemes assist in identifying
needs of consumers and providing value against their paid money. This strategy is very helpful in
retaining consumers and increasing sales of business. According to Lin, Hsu and Chen, (2015)
loyalty schemes are made up by companies by looking at redemption possibilities, rewards
options, needs of consumers etc. This makes the functioning of marketing department little easy.
Marketing is most significant functional unit in business; if firms provide attractive discounts to
its consumers then it helps business in attracting more people and increasing demand of products
and services. This develops unique brand image in the mind of customer and help the business
in creating long-term positive image in the mind of potential buyers.
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As per the view of Philander, Raab and Berezan, (2016) There are no specific key drivers
for making an effective loyalty scheme. Companies shave to implement data driven strategy and
have to use new technologies so that it can design great offer that can gain attention of mass
audience. Brands invest high amount for providing them satisfactory goods and services.
Effectual loyalty programs are liked by people. There are many consumers those who buy
services of airline where they get additional discounts or other additional services. In the
technological era companies are taking assistance of internet for informing potential buyers
about new discount codes so that these firms can enhance demand and can attract more people
towards enterprise.
García Saavedra, (2017) claimed that most of the clients search internet to know more
about attractive discounts offer by companies. This reward searching influences shopping
decision of buyers to great extent. There are many firms that are unable to offer such kinds of
reward to its consumers thus, people can turn towards other brands. Loyalty schemes are
considered as ubiquitous marketing instruments that aids in increasing number of customer of
organisation and helps in raising demand of product in market. According to Tanford and
Montgomery, (2015) loyalty schemes are helpful in increasing traffic in business unit. Many
airline firms offer amazing discounts, special meal type additional services to its customers so
that people can take more interest and they buy services of business unit. Increasing foot traffic
is always beneficial in order to promote brand and raise awareness among all people.
As per the view of Gheorghe, Moraru and Anton, (2017) Loyalty schemes are helpful in
improving rate of return and gaining more profit. Successful programs are being supported by
data driven strategies. It is win-win situation for consumers and companies both. By getting
such kinds of offer customer feel so happy because they get amazing products and services
against their paid money. Sometimes they get extra discounts that reduces price of actual
product. This win-win situation for both helps business in developing relationship between both
these persons. Loyalty schemes are considered as effective strategy that helps business in its
long-term growth.
Wever, (2015) argued that members those who have received reward from organisation
spend more money in business unit. This is the best way that helps business in increasing cash
flow and improving financial position of the firm to great extent. Customer retention is the most
important benefit of loyalty scheme. If entity is able to provide attractive offers to business then
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it would be beneficial for business in retaining potential buyers in business for longer duration.
Learning from mistake is most essential element, this makes the firm able to make changes in
strategies and improve their practices Through designing attractive loyalty programs many firm
attract people from across the world. For example British Airways is the leading airline firm that
provides amazing discounts to its travellers. Frequent flyer program of the company is very
popular. Airlines have adopted new loyalty schemes that is far differed from traditional method.
BA gives reward to its consumers for using services of business unit (McCall and McMahon,
2016). Rewarded customers spend more money and they become frequent flyer of organisation.
Initially when BA has introduced this frequent flyer program then it has faced huge difficulties.
But later on when consumers start using these facility then they get to know benefits of this
scheme for them. After that demand of British Airways has been increased with rapid speed and
this has supported in the entity in gaining competitive advantage. Fares paid by consumers
cannot be count as net profit of the organisation because entity has to pay tax, surcharge from the
collected money. After deducting tax and other expenses net profit is generated. Frequent flyer
program of the British Airways has been designed in such manner so that consumers can get
long-term benefit of it (Chhabra, 2017). When person first buy ticket of the company then BA
gives them extra points. They can use this point in next bill payment for during air travelling.
This loyalty scheme gives premium facilities to all class of consumers and makes them able to
enjoy luxurious services. Philander, Raab and Berezan, (2016) argued that such kind of programs
enhance spending of people and encourage loyalty as well. This is the best way to increase
profitability of business unit and help in gaining competitive advantage.
As per the view of Tanford and Montgomery, (2015) loyalty programs are not effective
because it increases cost of the organisation. Many firms are offering attractive discounts to its
travellers but by implementing this strategy entity become unable to recover their cost. The main
target of business is to recover their cost but giving additional discount impact on the overall net
profit of firm to great extent. Airline firms have to spend huge amount in oiling etc. Raw
material for airline business is very expenses. In such condition it is very difficult for the aviation
industry to manage its Loyalty programs (LP) and implement it in market. Wever, (2015)
claimed that loyalty schemes are able to reduce marketing expenditure of the organisation. If
enterprises are offering among loyalty offers to its consumers then it will automatically gain
attention of mass audience in such condition, firm will be able to generate more demand. Thus, it
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will not have to spend huge amount to promote the brand. Thus, this strategy is helpful in
minimising marketing cost of business and increasing profit of aviation industry.
As per the view of Shukla and Tripathi, (2015) loyalty scheme is one of the most
important factor in attracting and retaining consumers. This scheme provides benefits to the
consumers in terms of cost and services. Also, it will help company in retaining the customers
which is most important aspect in the growth of firm. British Airway has a keen advantage of
applying loyalty scheme. They are engaged in offering various discounts to their quality
consumers. In loyalty scheme firm also offers free packages of holiday to their consumers. After
getting such benefits customer feel very happy and excited and prefer to go through other trips
with the same company.
In accordance to Chhabra, (2017) loyalty scheme also have some disadvantage. They
argued that these schemes can also be provided by other competitors which can create difficulty
for British Airway to manage. Also, it might happen that after getting reward for once consumer
can go through other firms in order to avail discounts. This can hinder the growth of company or
organisation. It has been analysed that consumers also search for various discounts online, so
they will select for only those package which is beneficial for them. Also, offering these
programs can increase the cost of the firm. British Airway in order to attract more consumers
needs to offer that discount which attracts more consumers and through it they can gain
competitive advantage.
As per the view of Gheorghe, Moraru and Anton, (2017) loyalty scheme is one of the key
driver that can provide success to the organisation. Various industries make use of it in order to
increase their profit as well as revenue. British Airway is using loyalty scheme by offering
rewards and discounts to their loyal consumers. Many new strategies like data driven are been
used by firms so that consumers can easily avail the bonus schemes provided by various
industries. They also put information related to various packages on social media websites or
online apps so that consumer can avail it more flexibly. This also builds relationship between
firm and customers.
Significance of stakeholders and Leisure travellers’ loyalty
As per the view of McCall and McMahon, (2016) Leisure travellers are the people those
who like to go on holiday and want to enjoy their holiday. They are very price sensitive. Such
type of consumers look upon the fare of air travel and compare it with other brands. They buy
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tickets from the company that offer them products and services at affordable rates. Leisure
travellers take more time to make their purchase decision. Affordable air travel is the major tool
that attract these people towards the organisation.
Chhabra, (2017) argued that leisure travellers pay more emphases on reviews of others
and they make their final decision after getting recommendations from their friends or families.
Such kind of people are highly depended upon others. They first look at the reviews given by
others and they buy any products. If one person is giving negative reviews for any products then
they will not purchase such item. There are many people those who like to go on holiday for
spending quality time with family and friends. Aviation loyalty schemes play significant role in
attracting such people towards brand. There are many airline firms and other accommodation
organisations that design attractive loyalty schemes for such kind of leisure people so that they
get high quality goods and services at affordable rates. These are the frequent flyer and they
always prefer to buy services from trusted brand. Such kind of rewards and discounts make
these people loyal towards brand and make them regular customer of company.
According to Lin, Hsu and Chen, (2015) if stakeholder of company are satisfied then they
will give positive reviews to others. This would create positive image of business in the mind of
consumers. This is the best way of raising brand reputation and enhancing demand of product in
the market. British Airways pays more attention on leisure travellers. Such are the most
important stakeholder of organisation. Through offering loyalty scheme entity inspire them to
experience services of business unit. This supports the organisation in retaining its leisure
travellers in the firm for longer duration. Satisfied stakeholders help business in gaining
competitive advantage and increasing its market reputation as well. There are many aviation
firms those which are facing huge competition in market. Such type of market situation has
create complexity for the firms to make changes in their strategies and offer among discounts or
rewards to its buyers so that people buy services of company. Philander, Raab and Berezan,
(2016) claimed that it is very difficult to determine loyalty of consumers through loyalty scheme.
There are many people those who always prefer to get luxurious services, they are ready to pay
high amount for that. Thus, these type of people do not look much upon such kind of loyalty
schemes.
García Saavedra, (2017) stated that main significance of loyalty of leisure travellers in
aviation industry is that that helps business in increasing demand. By implementing such kind of
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schemes entity becomes able to attract more new consumers. Stakeholder loyalty is the main
agenda of many business units because it gives them benefit of raising its band image and help
companies in sustaining in market for longer duration.
Chhabra, (2017) argued that satisfaction of stakeholders matters a lot for the success of
business unit. Airlines companies always offer amazing and luxurious services to its stakeholders
so that they can be happy and retain in organisation for longer duration. Luxurious travellers
are frequent flyers, they always prefer to travel from the medium that can be more comfortable.
Thus, Aviation firms identify needs of its travellers and offer them services accordingly. This
aids entities in gaining competitive advantage. British Airways ensure to provide personalised
services to its travellers. Company gives them customised travelling experience so that they can
remember their journey for longer duration. This is the best way of making people loyal and
enhancing their satisfaction level.
As per the view of McCall and McMahon, (2016) Feedback of customers plays
significant role. Many companies take support of surveys for gathering feedback from
consumers. This helps in evaluating effectiveness of loyalty schemes. Many aviation firms look
at desires of luxurious travellers so that companies can fulfil their requirements. Survey is
proactive approach because it aids in knowing actual view of passengers about aviation firms. In
order to know concerns of travellers, airline companies design several loyalty schemes. Many
aviation firms offer low cost services to its passengers just to make them loyal towards brand. In
the recent competitive era, most of the airline companies are improving their services and
offering luxurious travelling to its passengers. Now many aviation companies provide television,
lighting facilities to its travellers. That is beneficial in order to influence mind of consumers and
making them positive towards brand. This is the best way through which entities can make its
leisure travellers loyal towards brand.
In the opinion of García Saavedra, (2017) loyalty schemes offered by companies lays
keen impact on the stakeholders. Various industries has also implemented rewards and bonuses
for their loyal and most efficient employees. Like for example they provide reward in the form of
holiday package to their most loyal and efficient employees. This helps companies and firms in
retaining them. Through offering loyalty scheme entity inspire them to experience services of
business unit. This supports the organisation in retaining its leisure travellers in the firm for
longer duration. Satisfied stakeholders help business in gaining competitive advantage and
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increasing its market reputation as well. This also help and support organisation in increasing
their profit as well as revenue. It increases their operational efficiency and productivity.
As per the view of García Saavedra, (2017) loyalty programs is the most important
component which supports various companies in raising communication with stakeholders. It is
very beneficial for companies in enhancing interaction with stakeholder like employees,
customers, investors and share holders as this will support them in gaining competitive
advantage. Also, with the help of effective communication companies like British Airway will
easily identify the needs and demands of stakeholders. This will create loyalty towards their firm
and also profit and revenue will be increased. Company by engaging in providing loyalty
schemes such as offering huge discount, rewards and bonuses can attract more customers and
also create loyalty. This will help firms in creating brand loyalty. With the support of loyalty
program they can form or build relationship with their stakeholders which includes customers
and employee’s.
Impact of loyalty development programme on tourist allegiances
As per the view of McCall and McMahon, (2016) Loyalty development schemes are
structured marketing strategies that are been designed by merchants to encourage consumers to
avail their products and services. This can make tourist allegiances. Ultimately it can attract more
consumers towards the airline industry that is British Airway. Many programs can be designed
by the hospitality organisation in order to build trust of tourist allegiances. This will help them in
increasing their profitability and also they would able to develop consumer loyalty. Loyalty
development program like offering club card to tourist allegiances in which they can earn points
on every booking made by British Airway and allowing discount on points build can increase the
good will of hospitality industry in the market. If hospitality organisation is not engaged in
making use of loyalty development program to attract tourist allegiances than it can lay severe
impact on their growth.
In the opinion of Tanford and Montgomery, (2015) while developing loyalty
development scheme on tourist allegiances three sets of factors needs to be considered by British
Airway that involves focal loyalty scheme, the consumers and rival schemes and firm. Loyalty
schemes like offering valid discounts to their premium consumers can attract more of travellers
towards them. Loyalty schemes have great impact on tourist allegiances. Reward can be given by
British Airway so that consumer create loyalty towards them. It includes that they will not get
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diverted to any other industry. This can help organisation in increasing their efficiency and
productivity.
As per the view of García Saavedra, (2017) LP are helpful in raising communication
with consumers. Each firm aims to enhance coordination with consumers so that it can identify
their needs and offer those products and services accordingly. Loyalty schemes support airline
industry in building bonds with travellers and offering them travel services as per their wants. It
can lay impact on tourist allegiances. Also, airline company like British airway offering loyalty
development schemes such as discounts and arranging of events for travellers can support them
in developing new relationship with clients. These schemes will support them in identifying and
understanding the needs and demands of travellers. Also, loyalty development schemes like
providing discount on air packages can attract new tourists towards their online industry. It will
lay keen impact on tourist allegiances. If British Airway is not been engaged in making use of
loyalty development schemes that their growth factor might get hamper and also their can rise
issues related to reduce in their profitability.
In the opinion of Creswell and Poth, (2017) Loyalty development schemes like giving
bonus, discounts and rewards by the British Airway to their premium consumers can support
them in laying impact on tourist allegiances. Offering services like free travellers can assist them
in enhancing their market value and conditions. Also, it will lay impact on the brand recognition
of British Airway. This can help them in attracting more customers and retaining them. Also
these schemes motivate consumers to avail more services from the airline industry.
Tanford and Montgomery, (2015) argued that loyalty schemes are helpful in maximising
profit of aviation industry. Many airlines now implement several strategies so that their
customers take more interest in travelling and become loyal towards brand. Such kind of loyalty
schemes support in attracting more buyers and increasing demand of product. British Airways
now offers special discounts to its passengers; provide seasonal offers so that they become
frequent flyer of company. Such kinds of loyalty schemes have significant impact on overall
profitability and performance of organization to great extent. Each firm aims to raise its revenues
and want to expand its operations. But this is only possible when it provides luxurious services to
consumers and provide them some additional facilities as compare to their competitors. This may
gain attention of traveller and can influence their decision as well. British Airways provides
seasonal offers to its passengers, by this way people make their mind to travel to other location.
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They get luxurious services by the organisation that makes them positive towards brand. These
satisfied people give positive reviews to others that supports firm in increasing demand and
creating positive brand image of business unit in the mind of consumers.
As per the view of Chhabra, (2017) financial reports of aviation companies reflect that if
the entity has loyal consumers then it helps business in raising its sales. Thee loyal people are
trustable and are worthwhile element for enterprises. For example: British Airways has invested
huge amount for providing luxurious services to its travellers. This has supported business in
attracting many foreign clients as well. Now British Airways has created positive brand image
that has resulted in successful establishment of operations in many other locations as well. Many
companies are taking support of different marketing strategies in order to make people aware
with product and services of business unit. But entities have to invest huge amount in marketing
in order to generate sales whereas loyalty sessions are helpful in increasing demand in cost
effective manner.
In the opinion of Creswell and Poth, (2017) loyalty schemes has supported various
companies in raising sales and increasing their revenue. But firms in order to gain attention of
tourist allegiances, this will help them in creating trust with the customers. Loyalty schemes
support airline industry in building bonds with travellers and offering them travel services as per
their wants. It can lay impact on tourist allegiances. Also, airline company like British airway
offering loyalty development schemes such as discounts and arranging of events for travellers
can support them in developing new relationship with clients. This will also support in creating
trust with consumers and stakeholders.
In the opinion of Tanford and Montgomery, (2015) companies who are engaged in
making use of loyalty schemes like rewards, bonus and offering huge discounts like giving free
holiday packages create trust between customers, stakeholders and company. This also support in
creating bond with tourist allegiances. With more consumer's attracting towards the firms, it
raises their brand name and also retain employees in their organisation. British Airway has
efficiently made use of these loyalty schemes that has increased their brand value in the market.
It has also attracted more customers and consumer's towards them.
As per the view of García Saavedra, (2017) loyalty schemes attract more consumers
towards organisation. Various firms are been engaged in making customer aware about the
schemes like rewards, bonus and discounts with the help of online channels and social media
16

websites. By these firms can explore large range of consumers which will help them in
enhancing their profit and revenue. Also loyalty schemes has supported companies in making
unique image and brand name in the market. This program will assist in enhancing the
operational efficiency and productivity of firm. It can create a bond of trust and healthy
friendship between consumer's and companies.
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CHAPTER 3: RESEARCH METHODOLOGY
Introduction
Research methodology is principles that are applied by researcher for resolving research
problems in systematic manner (Mackey and Gass, 2015). Scholar has to take support of
theories, models or many statistics in order to develop understanding about topic. These tools are
helpful in reaching to end results and constructing theory related to topic. This chapter will
include several techniques in order to find out answers of impact of loyalty scheme on Leisure
travellers.
Research philosophy
It is belief of scholar about the way through which data is being collected and analysed.
This is associated with nature and sources of knowledge. It is essential for research that to be
aware with the formulation of assumptions and believes. Positivism is the type of technique that
conduct an investigation by observing social reality. This is generally applied in quantitative type
of investigations where facts and real facts are being focused more closely. This highly
structured tool involves testing of hypotheses and applying statistical tools for answering
research questions (Glesne, 2015). Interpretivism is another technique that deals with human
nature and involves human being in research in order to get real answers related to subject
matter. In this technique researcher involves emotional feeling of participants related to topic.
This aids in knowing more about topic and answering research questions. This is generally
applied in qualitative types of studies where individual needs not to involve any kind of
statistical calculation. Furthermore, realism is another type of philosophy that involves reality by
taking into consideration the sense as truth. This tool explains that each object has its
independent existence thus, their views may get contrasts with each other (Silverman, 2016).
In the current study on impact of loyalty scheme on Leisure travellers, researcher has
taken assistance of positivism philosophy. This has helped in framing hypothesis and finding
results by testing these assumptions. By this way individual has become able to gather actual
facts related to topic and has answered the research questions in systematic manner. Use of
positivism philosophy has benefited in conducting this research in highly structured manner.
Another benefit of applying this technique is that scholar has observed the facts rather than
implementing rational speculation on the bases of available theories. Individual has paid
18

attention on fundamentals that has aided in measuring facts quantitatively (Bresler and Stake,
2017).
Research design
It is outline that explains the way in which researcher will process entire dissertation. It can
also be defined as series of decisions that are used by scholar in order to answer research
questions. This works as guideline or scaling procedure that supports researcher in involving
reliable information. Exploratory design is implemented in the type of study where investigator
has to generate posterior hypotheses (Shukla and Tripathi, 2015). This aids in examining
relationship between variables. One of the main advantage of applying this exploratory design is
that it assist in discovering new facts. Experimental design is another kind of designing tool that
aids researcher in experimenting facts in order to generate valid results. In this technique scholar
always tries to make changes in existing situation so that actual results can be generated. Many
researcher takes support of power analyses before carrying out experiments. By this way large
samples can be determined easily and researcher may become able to get appropriate results.
Descriptive design is another kind of technique that always assists in describing each element
and generating results (Vasilevsky and et.al., 2015). This technique provide accurate picture of
the topic and support scholar in developing understanding about topic.
In the current dissertation on impact of loyalty scheme on Leisure traveller’s investigator
has applied exploratory research design. That has supported investigator in involving open-ended
data collection form so that valid result can be generated. Use of explorator7y design has helped
the person in scheduling activities and exploring acts related to impact of loyalty schemes
aviation industry (Aithal, 2017).
Research approach
Research approaches are another methods that are used in order to complete dissertation.
Inductive approach is the tool that gathers general data and analyses the pattern. This helps
scholar in developing theory. This method is generally applies in qualitative type of researcher
where scholar needs not to involve statistical calculations. Individual takes support of theories in
order to analyses data and that aids in finding valid results. On other hand, deductive approach is
another kind of method that is used in quantitative type of studies. In this technique individual
has to frame hypotheses and has to test these assumption (Tricco and et.al., 2016). This helps in
generating more authentic results and answering research questions significantly. Deductive
19

approaches pay more attention on causality whereas inductive method focuses more on exploring
facts or phenomena. This tool involves theories and frame assumptions. Thee assumptions are
being observed by taking support of statistics and after confirmation individual becomes able to
accept or reject particular hypotheses (Mackey and Gass, 2015). This is the best way of
answering any research question. Deductive approach is used in quantitative type of technique.
In the current dissertation on impact of loyalty scheme on Leisure travellers scholar has
taken assistance of deductive research approach. Researcher has framed hypotheses and has
tested these assumptions (Glesne, 2015). This has helped individual in developing relationship
between variables. This is more suitable because by this way individual has released that
relationship between loyalty schemes and overall profitability of company to great extent.
Research strategy
It can be described as overall plan of scholar to conduct the study. Qualitative research is
the type of method that takes support of theories and models in order to find out answers related
to research questions. This is beneficial in order to gain understanding about underlying reasons
and other things related to subject matter. This is subjective approach that is used for knowing
more about topic without involving any complex calculations. On other hand quantitative
methods are another kind of strategies that are used in dissertation where scholar has to involve
complex calculation (Silverman, 2016). In this technique, research involves facts and figures
related to topic for answering research questions.
In the present dissertation impact of loyal schemes on Leisure travellers researcher has
taken assistance of quantitative strategy. This is beneficial in testing hypotheses and finding
relationship between various variables. This has helped scholar in knowing more about relation
between effective loyalty schemes and profitability of business unit. This is objective approach
and has helped investigator in using numerical facts, logical calculations or mathematical
technique for generating valid results (Bresler and Stake, 2017). This is particularisistic in nature
thus, scholar can use these calculation in research in efficient manner. Another benefit of
applying quantitative research strategy in the present study is that it has aided in examining cause
and effects between several variables. By testing hypotheses individual has become able to know
the real impact on one variable on other.
20

Data Collection
Data collection is the technique that aids researcher in gathering all relevant information
related to subject matter. Though collection of details is the complex task because in the absence
of accurate data scholar will not be able to reach to the end result. Before gathering information
investigator has to plan for the sources through which details can be gathered. Furthermore,
individual is required to figure out the actual information needed to solve research questions.
There are many sources of gathering data such as primary and secondary (Shukla and Tripathi,
2015). Primary data collection is most essential technique through which details related to topic
can be collected smoothly. These are such techniques in which individual gathers raw material
that have never been used earlier in any kind of articles. All these details are fresh and helps in
knowing real facts . As these details are collected by investigator for the first time thus, these are
reliable and highly related to topic. In order to collect such kind of details individual is required
to involve human being. These participants are able to share their views related to subject matter.
Questionnaire, observation, survey, interview are various tools through which scholar can gather
first hand information (Vasilevsky and et.al., 2015). One of the main advantages of using
primary sources in dissertation is that scholar can eliminate subjectivity biasness. Because
individual selects respondents randomly, thus individual can get answers without any issue.
Furthermore, use of primary data does not get affected by past behaviour because it always
emphases on current facts. But use of primary sources is quite time taking and costly process
thus, in most of the studies researcher avoid involving these details. Apart from this, information
that is provided by participants are very limited that sometimes stuck the scholar in finding
suitable solution for research question (Aithal, 2017).
On other hand secondary data collection sources are another kind of method in which
individual takes support of already available information. Past investigators have also conducted
their research on same topic thus, individual can take guidance from their literatures. This is
simplest way to raise knowledge and develop understanding about topic. Moreover, scholar has
no idea related to intricacies data. As purpose of previous studies and current study is far differed
thus, researcher has to use only such details that are related with current investigation. There is
high chance of involving unreliable and inaccurate data. Books, Journals, internet articles etc. are
various sources of collection secondary data (Tricco and et.al., 2016). One of the main advantage
21

of using secondary source is that it is time and cost saving. Individual can collect huge details in
less time. This is the best way through which person can become familiar with the subject matter.
In the current dissertation on impact of loyalty scheme on Leisure travellers, scholar has
applied both these data collection sources. Individual has taken support of questionnaire
technique. Researcher has asked questions from respondents related to various loyalty schemes
and their effectiveness (Mackey and Gass, 2015). This has helped scholar in finding actual facts
and analysing the effectiveness of loyalty schemes for leisure travellers. On other hand
investigator has also taken material from books, journals, internet articles ad all these details
have been reviewed in order to answer research question.
Sampling
Sampling is most important tool that helps researcher in selecting members from
population. There are two main methods of sampling: probability and non probability.
Probability sampling methods are such tools in which each respondent has equal chance to be
selected. Simple random sampling is most commonly probability method in which scholar
selects participants randomly (Glesne, 2015). This is easy technique and support in avoiding
biasness. Stratified is another sampling tool, in this scholar has to divide group of people on the
bases of their characteristics. These groups are known as strata. When heterogeneous population
is being divided into homogenous group then it helps in gaining more specific details related to
subject matter. Cluster sampling is another kind of sampling method that always emphases on
dividing people on the ground of their age, sex, location etc. Investigator has to selects clustered
randomly. Furthermore, systematic clustering is another kind of tool that in which selection of
people is being done systematically. People are being chosen at regular intervals from available
population (Silverman, 2016).
On other hand non probability is another kind of sampling technique in which each
sample does not have equal chance to be selected for this study. Researcher selects people for
specific purpose. Convenience sampling is type of method in which researcher selects the people
those who are available at that time. In this, technique individual takes into consideration cost
and availability of person. Purposive is another non-probability sampling in which scholar
selects people with special intention. These people are related with the subject matter and have
good knowledge about topic (Shukla and Tripathi, 2015). Thus, scholar selects people so that
they can answer the research questions and scholar can reach to end result.
22

In the current dissertation on impact of loyalty schemes on leisure travellers , investigator
has applied purposive sampling method. This is best suitable for the quantitative type of studies.
By this way individual has become able to involve specific consumers those who travel by
British Airways. This has supported in analysing viewpoint of these people about various loyalty
schemes of aviation firms and how these schemes influence mind of consumers (Vasilevsky and
et.al., 2015). 50 customers as sample have been selected by scholar for current study, they all are
leisure traveller. They are able to share their views about topic, by this way scholar would be
able to answer research questions significantly.
Data Analyses
Data analyses is the type of process in which scholar has to evaluate the data and have to
generate valid results. This is the best way to discover useful information and draw a valid
conclusion. In this technique investigator has to organise data in systematic manner and have to
evaluate these details (Aithal, 2017). There are several technique of analyzing information such
as thematic, statistical analyses, secondary analyses etc. Thematic analyses are the type of tool
that is generally used in qualitative type of dissertations. This is the simplest way to evaluate
details, in this individual prepare themes and interpret these themes. This is the easiest way to
review themes and refine all themes. This helps scholar in generating valid results and drawing
conclusion. On other hand statistical analyses is another kind of method that is applied in
quantitative type of projects. In this, scholar has to involve numbers and have to perform
statistical calculations. SPSS is the major software that is used for testing hypothesis. This is best
way to generate highly authentic results and reaching to end results (Tricco and et.al., 2016).
Secondary analyses is another evaluating methods in which investigator has to take support
of previous studies and by reviewing all these facts individual generate results. This is also used
in qualitative type of investigations where individual applies theories and models. In the present
dissertation on impact of loyalty schemes on leisure travelers, investigator has applied statistical
analyses method. Individual has framed hypotheses and have tested these assumptions by taking
support of SPSS (Mackey and Gass, 2015). This has helped in calculating correlation, regression
etc. On the bases of results of tests individual has accepted or rejected some hypotheses. This
has aided in answering research questions significantly.
23

Reliability and validity
Reliability can be described as consistency of results. Scholar implements various
techniques through which results can be generated. If the same data is used in further and if
same results are being generated then it means findings are highly reliable. Before involving any
data researcher has to check reliability of details, if information are less reliable then it might
negative affect end results (Silverman, 2016). Cronbach’s alpha is the tool that is used to check
reliability of data. Validity is another most important technique that determines the extent to
which research instruments are valid and are able to give accurate results. Accuracy of valid
information is very high and it helps researcher in resolving complex problems soon. The
success of entire dissertation is highly depended upon reliability and validity of data that have
been used in this study (Vasilevsky and et.al., 2015). In the current study scholar has taken care
of this element and have involved only such details that are highly reliable and valid. By this way
individual has become able to draw valid conclusion related to impact of loyalty schemes on
leisure travellers of British Airways.
Ethical consideration
Ethics are norms that are essential to be followed by scholar while working on any
dissertation. In the present study investigator has maintained dignity of participants. No
respondents have been forced to share their views. Individual has first sent them consent form
and then they have signed this consent form (Tricco and et.al., 2016). This shows that all are
ready to share their views. But all answers have right to leave the question, if they are not
comfortable with any asked question. Data protection is most essential part, it is responsibility of
scholar that to maintain privacy at workplace. Data needs not to be shared with any third person,
if it happens then it would be considered as serious issue. This thing has been considered by
researcher in this dissertation and adequate level of confidentiality has been ensured (Aithal,
2017).
Investigator has not manipulated data; all these details have been paraphrase in
appropriate manner. Furthermore, honesty and transparency has been taken as priority. There is
no issue of plagiarism, researcher has paraphrased all literature in appropriate manner and no
detail has been copied from any site. Scholar has avoided using offensive or unacceptable
language and has acknowledged participation of respondents (Tricco and et.al., 2016).
24

Permission has been taken from higher authorities and after getting their approval this study has
been started by individual.
25

CHAPTER 4: DATA ANALYSES
Introduction
This chapter is most important in any dissertation. In this session researcher will evaluate
the data by taking support of SPSS. Correlation, regression, frequencies will be calculated and
data will be analysed accordingly.
Data Analyses
Frequencies
Have you used
services of
British
airways
Do you
participate
in loyalty
scheme of
company
Often do
you travel in
a year
Reason of
frequent
traveling by
British
Airways
Level of
membership in
loyalty scheme
of British
Airways
Type of
loyalty scheme
is offered by
British
Airways
N Valid 50 50 50 50 50 50
Missing 0 0 0 0 0 0
Mean 1.2600 1.2600 2.1400 1.5200 1.9600 3.3600
Median 1.0000 1.0000 2.0000 1.0000 2.0000 4.0000
Mode 1.00 1.00 2.00 1.00 2.00 4.00
Std.
Deviation .44309 .44309 .80837 .73512 .60474 1.02539
Range 1.00 1.00 3.00 2.00 2.00 3.00
Interpretation: From the above table it is identified that mean value of people those who have
used services of British Airways is 1.26. On other hand median is 1.00, standard deviation of this
variable is 0.44. Mean value of people participate in loyalty schemes is 1.26 and median is 1.00.
Furthermore, reason of frequent travelling by British Airways is leisure travelers as mean value
of this variable is 1.52. Mean value of types of loyalty schemes is offered by British Airways is
3.3 and median is 4.00.Whereas standard deviation for this element is 1.02.
Have
you
taken
Loyalt
y
schem
Aviation
firm
have
Loyalty
schemes
influence
Loyalty
card
makes
Loyalty
schemes of
British
Loyalty
schemes lead
to increase
26

advanta
ge of
redeemi
ng
rewards
against
product
es of
British
Airwa
ys
motiva
te
made
attractiv
e loyalty
schemes
purchasin
g
decision
convenie
nt to
travel
Airways
better than
others
loyalty
towards
Brand
N 50 50 50 50 50 50 50
0 0 0 0 0 0 0
Mean 1.2600 2.0400 2.0400 1.4000 2.0400 2.6800 1.5800
Median 1.0000 2.0000 2.0000 1.0000 2.0000 3.0000 1.0000
Mode 1.00 2.00 2.00 1.00 2.00 3.00 1.00
Std.
Deviation .44309 .69869 .69869 .75593 .69869 .76772 .85928
Range 1.00 3.00 3.00 2.00 3.00 3.00 3.00
Interpretation: From the above table it is identified that mean value of people taken advantage
of redeeming rewards points against product is 1.26. Mean value of Loyalty schemes influence
purchasing decision is 1.40. Furthermore, another element is schemes of British Airways better
than others and mean value for this variable is 2.68 and median is 3.00.
Frequency Table
Have you used services of British airways in past
Frequency Percent Valid Percent Cumulative
Percent
Valid
yes 37 74.0 74.0 74.0
no 13 26.0 26.0 100.0
Total 50 100.0 100.0
Interpretation: From the above table it is identified that there are 74% people those who are
agreed that they have used services of British Airways. On other hand 26% answerers are here
those who said that no they have never used services of British Airways earlier. From the above
27

table it can be interpreted that most of the travelers have experience travelling by BA. They
know more about loyalty schemes of business and other services offered by company to its
consumers.
Do you participate in loyalty scheme of company
Frequency Percent Valid Percent Cumulative
Percent
Valid
yes 37 74.0 74.0 74.0
no 13 26.0 26.0 100.0
Total 50 100.0 100.0
Interpretation: From the above table it is identified that 74% respondents participate in loyalty
schemes of company. Whereas 26% answerers have replied that they do not participate in such
kind of schemes activity. From the above discussion it can be interpreted that most of the people
like loyalty schemes because by this way they get some additional facilities. This gives them
amazing experience and they always prefer to get such kind of experiences in the future.
How often do you travel in a year
Frequency Percent Valid Percent Cumulative
Percent
Valid
once in a year 9 18.0 18.0 18.0
twice in a year 29 58.0 58.0 76.0
3-5times 8 16.0 16.0 92.0
more than 6 times 4 8.0 8.0 100.0
Total 50 100.0 100.0
Interpretation: From the above table it is identified that there are 58% travelers those who
traveler twice in a year. Whereas 18% consumers are here those who travel by British Airways
once in a Year. 16% answerers are here those who have replied that they travel 3-5 times in a
year. From the above data its can be interpreted that many leisure travelers are here those who
travel twice. That means if company designs attractive loyalty schemes then it can help
organization in attracting more people towards brand.
28

Main reason of frequent traveling by British Airways
Frequency Percent Valid Percent Cumulative
Percent
Valid
leisure trip 31 62.0 62.0 62.0
visiting friends 12 24.0 24.0 86.0
business trip 7 14.0 14.0 100.0
Total 50 100.0 100.0
Interpretation: From the above table it is identified that 62% respondents are leisure travelers,
they like to go with friends and families for spending quality time. On other hand 24% answers
are here those who travel to visits friends whereas 7% people use services for business trip. From
the above data it can be interpreted that most of the people are leisure travelers . They g on
holiday with their friends thus, they always look upon the services provided by company and its
additional benefits. If British Airways concentrate on these people and offer them satisfactory
services then it would help in increasing demand of organization and gaining competitive
advantage.
What is level of membership in loyalty scheme of British airways
Frequency Percent Valid Percent Cumulative
Percent
Valid
introductory level 10 20.0 20.0 20.0
intermediate level 32 64.0 64.0 84.0
premium level 8 16.0 16.0 100.0
Total 50 100.0 100.0
Interpretation: From the above table it is identified that 20% respondents are here those who
are introductory level member of loyalty schemes. On other hand 64% travelers are company are
intermediate level members, whereas 16% people are premium level travelers. From the above
data it can be interpreted that British Airways have large number if intermediate level loyalty
scheme members. Many people like its additional facilities and such kinds of loyalty facilities.,
This has made them intermediate level members.
Which type of loyalty scheme is offered to you by British Airways
29

Frequency Percent Valid Percent Cumulative
Percent
Valid
tier system 5 10.0 10.0 10.0
VIP system 5 10.0 10.0 20.0
point system 7 14.0 14.0 34.0
reward system 33 66.0 66.0 100.0
Total 50 100.0 100.0
Interpretation: from the above table it is identified that 66% travelers are here those who are
members of reward loyalty schemes. Whereas 14% respondents are here those who have replied
that they are member of valid point system. 10% answerers have replied that they have used VIP
system loyalty scheme. From the above data it can be interpreted that there are large number of
travelers those who are member of reward system loyalty schemes of British Airways. This is
effective strategy because by this way enterprise has become able to offer additional services or
facilities to its consumers. People gets rewards for their purchasing by BA and these rewards
points can be redeemed by them against the products or services. On other hand there are many
travelers those who like its valid point system schemes as well. They have view point that by
getting this facility they have become able to experience cheap travelling many times.
Have you taken advantage of redeeming reward against product
Frequency Percent Valid Percent Cumulative
Percent
Valid
yes 37 74.0 74.0 74.0
no 13 26.0 26.0 100.0
Total 50 100.0 100.0
Interpretation: From the above table it is identified that 74% travelers are here those who have
redeemed reward points against their products. Whereas 26% people said that they have no
redeemed their points. From the above details it can be interpreted that Most of the people like to
get reward points. Company makes special loyalty card for its buyers, wherever the purchase any
product of services of entity these people get additional points. They have chance to redeem
these points against the purchased product and services. In this situation their actual bill amount
gets reduced because it is adjusted against the point .This makes the journey of consumers cost
30

effective. That is the reason that people become member of reward loyalty scheme of BA and
they redeemed their points to take advantage of it.
Do loyalty schemes of British Airways motivate you to book ticket
Frequency Percent Valid Percent Cumulative
Percent
Valid
Strongly agree 8 16.0 16.0 16.0
agree 35 70.0 70.0 86.0
disagree 4 8.0 8.0 94.0
strongly disagree 3 6.0 6.0 100.0
Total 50 100.0 100.0
Interpretation: From the above data it is identified that 70% respondents have viewed that
loyalty schemes of British Airways motivate them to book their tickets. On other hand 16%
answers are here those who are strongly agreed that loyalty schemes of BA is very effective and
always encourage them to book their travel by BA. 8% answerers are hers those who have said
that they are disagreed with this point that loyalty schemes of BA motivates them because they
have not received any kind of additional facilities by becoming member of this loyalty schemes.
From the above data it can be interpreted that many consumers of British Airways are highly
satisfied with the loyalty schemes of entity. They become member of this scheme in order to get
advantage of it. Every time they book their ticket because they get some additional benefits that
makes their journey cost effective. Thus, it motivates consumers to book their next travel by BA.
Do you think that aviation firm have made attractive loyalty schemes
Frequency Percent Valid Percent Cumulative
Percent
Valid
Strongly agree 8 16.0 16.0 16.0
agree 35 70.0 70.0 86.0
disagree 4 8.0 8.0 94.0
strongly disagree 3 6.0 6.0 100.0
Total 50 100.0 100.0
31

Interpretation: From the above table it is identified that 70% answerers have replied that
aviation firms designs attractive loyalty schemes. Whereas 16% respondents have said that they
are strongly agreed that airline companies design amazing loyalty schemes for its consumers.
From the above detail it can be interpreted that aviation firm has to design attractive loyalty
schemes that can gain attention of mass audience. This may help business in increasing demand
in market and gaining competitive advantage. By framing such amazing offers BA has become
able to increase its profitability and motivating people to buy its product and services.
Does loyalty schemes influence your purchasing decision
Frequency Percent Valid Percent Cumulative
Percent
Valid
yes 38 76.0 76.0 76.0
no 4 8.0 8.0 84.0
sometimes 8 16.0 16.0 100.0
Total 50 100.0 100.0
Interpretation: Above table reflects that 76% respondents have viewed that 76% respondents
have replied that yes loyalty schemes influence purchasing decision of consumers to great extent.
On other hand 8% answers have said that no it does not impact on decision making process of
person. Whereas 16% people are here those who have replied that sometimes loyalty schemes
make changes in their judgment. From the above data it can be interpreted that effective and
attractive loyalty schemes are able to turn mind of buyers. If entities designs loyalty schemes as
per the need of consumers and includes additional facilities then it will help firm in making
people positive towards brand and will influence their purchasing decision positively.
Having loyalty card makes convenient to travel from British Airways
Frequency Percent Valid Percent Cumulative
Percent
Valid Strongly agree 8 16.0 16.0 16.0
agree 35 70.0 70.0 86.0
disagree 4 8.0 8.0 94.0
strongly disagree 3 6.0 6.0 100.0
32

Total 50 100.0 100.0
Interpretation: From the above table it is identified that 70% respondents are here those who
have replied that yes having loyalty cards make the travelling convenient for travelers. Whereas
16% people have said that no it is not possible to make travel convenient by offering loyalty
schemes. From the above detail it can be interpreted that if companies offer additional facilities
to its buyers by taking support of loyalty schemes then it may support business in making people
loyal towards brand. By taking advantage of these schemes many people get benefit of cheaper
products and services. This makes their journey memorable. This is the best way through which
British Airways gain attention of mass people and make them positive towards brand.
Loyalty schemes of British Airways better than others
Frequency Percent Valid Percent Cumulative
Percent
Valid
Strongly agree 5 10.0 10.0 10.0
agree 10 20.0 20.0 30.0
disagree 31 62.0 62.0 92.0
strongly disagree 4 8.0 8.0 100.0
Total 50 100.0 100.0
Interpretation: From the above table it is identified that 62% people are disagreed that loyalty
schemes of British Airways is better than other brands. On other hand 20% answerers have
replied that they are agreed that that yes loyalty schemes of company is better than other aviation
firms. From the above data it can be interpreted that British Airways is required to improve its
loyalty schemes. It has to design attractive schemes that may help in attracting more people
towards brand. Furthermore, enterprise is required analyses needs of travelers and have to
provide additional facilities to consumers so that it can meet with their requirements and can
satisfy them. This will help business in managing its operations well and increasing demand of
product and services in market.
Does loyalty schemes lead to increase your loyalty towards British Airways
Frequency Percent Valid Percent Cumulative
Percent
Valid Strongly agree 30 60.0 60.0 60.0
33

agree 14 28.0 28.0 88.0
disagree 3 6.0 6.0 94.0
strongly disagree 3 6.0 6.0 100.0
Total 50 100.0 100.0
Interpretation: From the above table it is identified that 60% people are strongly agreed that
loyalty schemes lead to increase loyalty of consumers towards brand. On other hand 28% people
are here those who have replied that they are agreed that yes loyalty schemes are very effective
in order to make people loyal towards brand. Whereas 6% answerers have replied that they are
disagreed with the point because sometimes loyalty offers fail to attract people. Many travelers
look at quality of services provided by aviation firm rather than looking at the additional loyalty
offers. They do not concentrate on such kind of schemes. From the above data it can be
interpreted that loyalty schemes of British Airways are able to increase loyalty of travelers
towards the firm. This supports business in gaining attention of mass audience. Most of people
like to get additional facilities; they always buy their items from the company that provides them
attractive benefits. This makes them loyal towards brand and makes them frequent buyers.
British Airways emphases on several needs of consumers and design attractive loyalty schemes
so that people like this facility and they frequently avail this facility.
Regression
Regression is the technique that helps in determining statistical relationship between
variables. With the help of this tool researcher can find out impact of one variable on other.
Regression analyses is generally used in prediction and forecasting. By this way interrelation
between various variables can be identified effectively.
Null Hypotheses: Loyalty cards enhances interest or purchase of consumers
Alternative hypotheses: Loyalty cards do not enhance interest or purchase of consumers
Model Summary
Model R R Square Adjusted R
Square
Std. Error of
the Estimate
1 .361a .131 .094 .71969
34

a. Predictors: (Constant), having loyalty card makes
convenient to travel from British Airways, have you taken
advantage of redeeming reward against product
Interpretation: From the above data it can be interpreted that R value is .361.As there are two
variables, constant variable is having loyalty card makes convenient to travel and independent
variable is have people taken advantage of redeeming reward points against the products. The
value of Std Error of the estimation is .71969 that shows high degree correlation. Value of R
square shows that total variation between dependent and independent variables. Value of R
square is .13. Thus, it can be said that if the people have loyalty cards then they will redeem the
point. That means they take advantage of loyalty schemes. From the above data it can be
interpreted that loyalty cards or schemes impact on decision making of consumers and influence
their buying decision to great extent.
ANOVAa
Model Sum of
Squares
df Mean Square F Sig.
1
Regression 3.656 2 1.828 3.530 .037b
Residual 24.344 47 .518
Total 28.000 49
a. Dependent Variable: does loyalty schemes influence your purchasing decision
b. Predictors: (Constant), having loyalty card makes convenient to travel from
British Airways, have you taken advantage of redeeming reward against product
Interpretation: Above table indicates that P value is .037. If value of P is less
than .05 that means null hypotheses is accepted and alternative hypotheses are
rejected. Here the results show that loyalty cards and redemption of points have
high correlation that means people are taking advantage of these loyalty schemes.
It can be said that if British Airways makes effective loyalty schemes and
travelers will take advantage of it by redeeming points against the products,. This
will encourage their purchasing and they will become loyal towards brand.
.
Coefficientsa
35

Model Unstandardized
Coefficients
Standardized
Coefficients
t Sig.
B Std. Error Beta
1
(Constant) .469 .365 1.283 .206
Have you taken
advantage of redeeming
reward against product
.328 .257 .192 1.278 .208
Having loyalty card
makes convenient to
travel from British
Airways
.254 .163 .235 1.561 .125
a. Dependent Variable: does loyalty schemes influence your purchasing decision
Interpretation: Above table indicates that dependent variable is loyalty schemes influence the
purchasing decision of consumers and independent variables are advantage of redeeming points
against the product and loyalty cards makes convenient to travel from British Airways. From the
above results it is identified that value of P is less than .25that means having loyalty card does
not really impact on buying decision of consumers. People see loyalty schemes to make mind
whether to buy its products or not. If entity has designed effective loyalty schemes then it will
encourage others and they will definitely purchase services of business. British Airways needs to
design attractive loyalty schemes so that people expense its services and become loyal towards
brand.
Correlation
Correlation is the great statistical tool that determines how strongly variables are related
with each others. This technique is helpful in indicating predictive relationship between variables
and finding accurate results.
Correlations
36

Do you
participate in
loyalty scheme
of company
Level of
membership in
loyalty scheme
of British
airways
Which type of
loyalty scheme
is offered to
you by British
Airways
Participate in loyalty
scheme of company
Pearson Correlation 1 .040 -.165
Sig. (2-tailed) .785 .251
N 50 50 50
Level of membership in
loyalty scheme of British
airways
Pearson Correlation .040 1 -.042
Sig. (2-tailed) .785 .771
N 50 50 50
Which type of loyalty
scheme is offered to you
by British Airways
Pearson Correlation -.165 -.042 1
Sig. (2-tailed) .251 .771
N 50 50 50
Interpretation: From the above data it is identified that value of co-relationship between
participate in loyalty scheme and level of membership in British Airways has significant
correlation, the value is .785.This reflects that people participate in loyalty schemes of BA and
they are member of company. They always experience its services to get some additional
benefits. On other hand it is found that there is moderate Correlations between level of
membership and participate of people in loyalty scheme of business, the value is .785. That
reflects that BA takes care of its consumers and always motivates them to become member of
organization. From the above data it can be interpreted that Aviation firms are required to design
effective loyalty schemes so that consumers become member of it. This may help business in
increasing demand and enhancing loyalty of people towards brand.
Correlations
37

Level of
membership in
loyalty scheme
of British
airways
Do loyalty
schemes of
British
Airways
motivate you to
book ticket
Does loyalty
schemes
influence your
purchasing
decision
Does loyalty
schemes lead
to increase
your loyalty
towards British
Airways
What is level of
membership in loyalty
scheme of British airways
Pearson Correlation 1 .197 .080 .242
Sig. (2-tailed) .170 .579 .091
N 50 50 50 50
Do loyalty schemes of
British Airways motivate
you to book ticket
Pearson Correlation .197 1 .317* .300*
Sig. (2-tailed) .170 .025 .034
N 50 50 50 50
Does loyalty schemes
influence your purchasing
decision
Pearson Correlation .080 .317* 1 .201
Sig. (2-tailed) .579 .025 .161
N 50 50 50 50
Does loyalty schemes
lead to increase your
loyalty towards British
Airways
Pearson Correlation .242 .300* .201 1
Sig. (2-tailed) .091 .034 .161
N 50 50 50 50
*. Correlation is significant at the 0.05 level (2-tailed).
Interpretation: From the above table it is identified that there is significant relationship between
level of membership in loyalty schemes and loyalty schemes motivate people to book ticket. The
value is .579 that means there is moderate relationship that reflects that if people experience
loyalty benefits of entity then they will get motivated to buy tickets next time as well. From the
above data it can be interpreted that there is significant relationship between loyalty and
motivation levels of travelers. If products and additional facilities are satisfactory then it
defiantly helps in encouraging people to buy services of business frequently. This supports in
increasing demand of entity and it becomes able to gain competitive advantage.
Reliability
Reliability can be defined as degree to which results of the study are stable and
consistent. There are several type of reliability such as test, parallel etc. It is very important for
38

scholar that to check reliability of data and results so that valid conclusion can be drawn.
Cronbach’s alpha is the technique that helps in testing reliability of data.
Reliability Statistics
Cronbach's Alpha N of Items
.723 9
Interpretation: From the above table it is identified that value of Cronbach’s Alpha is .723 that
fall in the criteria of .07>.06 which is acceptable. Thus, it can be said that results are acceptable
and are reliable.
Discussion
From the above details it is analyzed that There are many people those who have
experienced services of British Airways. Most of the people have positive reaction towards
loyalty schemes of company but there are few people those who are still not convinced with
loyalty offers of organization. People participants in loyalty schemes of company, they always be
positive if they get some additional benefit by the organization. Most of people participate in
such kinds of schemes This gives them amazing experience and also influences their mind as
well. From the above details it is analyses that leisure travelers prefer to go on amazing locations
whereas they can get good experience. They chose leisure trips and become member of
intermediate level of loyalty schemes.
Reward system loyalty schemes of British Airways are very effective in which company
provides reward points to its consumers at every purchase. Whenever they book their tickets by
BA then entity add some points in their loyalty cards. They can redeem these points against the
products. In such condition if the person want to adjust its points against the bill then firm gives
them facility to do the same. Data analyses chapter clearly describes that loyalty schemes plays
significant role in business unit. It is beneficial in attracting more consumers towards brand.
There is significant relationship between loyalty schemes and buying decision of consumers. If
travelers are getting satisfactory products and services and some additional benefits then it helps
companies in gaining attention of mind and influencing buying decision of consumers to great
extent. If consumers are not getting some attractive features then they will prefer to buy tickets
from other airline company. This is the best way through which organization can raise
satisfaction level of its buyers and can retain them in business for longer duration.
39

From the statistical analyses and secondary information it has been analyzed that most of
the consumers take loyalty cards of business, these loyalty cards gives them many facilities.
They get facility of easy travelling and cost effective travelling. Such kinds of schemes are
helpful in retaining consumers in business for longer duration. Loyalty is the powerful element
that makes people able to make frequent buyers. These are effective and aids firms in gaining
competitive advantage. From the literature review it is analyzed that there are several kinds of
loyalty schemes offer by airline companies such as tier system, point, reward system etc. All
these kinds of are able to influence mind of travelers. Investment in loyalty schemes are very
essential for business because it supports in increasing demand. There are many aviation firms
that design attractive ;loyalty schemes, such kinds of schemes are able to influence mind of
consumers and make them positive towards brand. This is highly beneficial in order to make
changes in purchasing decision of organization. Loyalty schemes have been designed by
companies to maximize their profit. Most of the respondents have stated that they have redeemed
their points against the product. Whenever they buy tickets of British Airways then they have
option to redeem their points. Company has provided loyalty cards to its consumers. With every
spending some points get added to their loyalty cards when these points reach to at certain level
then people can redeem these points against their bill. In such condition they can travel at
cheaper cost. Apart from this, loyalty cards sometimes provide amazing facilities such as extra
luggage, less waiting time etc. By this way many people become member of these schemes so
that they can avail these benefits.
It has been analyzed that LP are very effective in order to enhance
spending of people to great extent. Research findings reflect that when companies give
appropriate information to consumers then people get to know additional benefits provided by
firm to its consumers. This makes them positive towards brand. Apart from this, when they avail
such offers then they become loyal towards brand. This makes them frequent consumers of
organization. Reward points support in minimizing consumers turnover. Sometimes companies
give cash back offers to its travelers. That means people can get certain amount cash back, this
amaze people and influence their decision as well.
40

CHAPTER 5: CONCLUSION AND RECOMMENDATION
Conclusion
From the above dissertation it can be concluded that airline loyalty schemes have
transformed the entire industry, it has supported in boosting sales of this sector and helps
companies to grow well. Air travel industry provides amazing and wide range of goods and
services to its consumers. Apart from this it also offers amazing discount offers so that
participation of consumers can be encouraged. British Airways is the well known aviation firm
that provides frequent flyer scheme to its c travellers. This scheme has been designed by
company to raise loyalty of consumers to great extent. There are many airline companies that
gives tier system scheme to its consumers, Such type of schemes make the person loyal because
individual becomes able to get more additional benefits. Thus, this encourages them to buy the
same services again in order to get more discounts or utilise their points.
LPs are designed by companies by looking at redemption possibilities, rewards options,
needs of consumers etc. This makes the functioning of marketing department little easy. If firms
provide attractive discounts to its consumers then it helps business in attracting more people and
increasing demand of products and services. In the technological era companies are taking
assistance of internet for informing potential buyers about new discount codes so that these firms
can enhance demand and can attract more people towards enterprise. By getting such kinds of
offer customer feel so happy because they get amazing products and services against their paid
money. Sometimes they get extra discounts that reduces price of actual product. This win-win
situation for both helps business in developing relationship between both these persons.
Rewarded customers spend more money and they become frequent flyer of organisation.
Initially when BA has introduced this frequent flyer program then it has faced huge difficulties.
But later on when consumers start using this facility then they get to know benefits of this
scheme for them. This experience has influenced their mind and has made them positive towards
company. That has supported British Airways in improving its brand image and making people
loyal towards brand. Leisure travellers are such people those who like to go on holiday with their
families or friends. They always want luxurious services, leisure travellers pay more emphases
on reviews of others and they make their final decision after getting recommendations from their
friends or families. Such kind of people is highly depended upon others. They first look at the
reviews given by others and they buy any products. If one person is giving negative reviews for
41

any products then they will not purchase such item. Thus, it is very important for aviation
companies that to pay attention on raising satisfaction level of its travellers, by this way firms
will be able to design g loyalty schemes accordingly. This would be beneficial in order to raise
satisfaction level of consumers to great extent. Satisfaction of stakeholders matters a lot for the
success of business unit. Airlines companies always offer amazing and luxurious services to its
stakeholders so that they can be happy and retain in organisation for longer duration. Luxurious
travellers are frequent flyers; they always prefer to travel from the medium that can be more
comfortable. Thus, Aviation firms identify needs of its travellers and offer them services
accordingly. This aids entities in gaining competitive advantage. Furthermore, these schemes
support them in identifying and understanding the needs and demands of travellers. Also, loyalty
development schemes like providing discount on air packages attract new tourists.
From the above study it can be articulated that most of the people like loyalty schemes
because by this way they get some additional facilities. This gives them amazing experience and
they always prefer to get such kind of experiences in the future. Loyalty cards or schemes
impact on decision making of consumers and influence their buying decision to great extent.
Loyalty schemes are always beneficial in order to retain consumers in firm for longer duration
and gaining competitive advantage in market. There are various drivers that influence decision
of travelers such as economic condition, strategies of competitors etc. But if entity designs
amazing loyalty schemes and people will look upon additional beneficial thus, influence of
drivers will be minimized. From the above research it can be said that LP benefits needs to be
compatible as per the needs of consumers.
Designing effective loyalty schemes are very helpful in maintaining relationship with
customers; companies always measure their success with the retention of consumers. Loyalty
aids businesses in increasing satisfaction level of consumers and meeting with their needs. LPs
are beneficial in raising communication with travellers in aviation industry. Each firm aims to
enhance coordination with consumers so that it can identify their needs and offer those products
and services accordingly. Such kinds of schemes support airline industry in building bonds with
travellers and offering them travel services as per their wants. This makes them frequent buyers
and they give positive reviews to others. This assists raising sales of business and raising its
brand image as well.
42

Recommendations
 British Airways should align Loyalty programs (LP) with main benefits that consumers
expect to get from products and services. This would support entity in increasing
satisfaction level of consumers and will help in building their trust on organisation. If BA
congruent benefits with main services then it will attract more people towards brand and will
help in retaining travellers in the firm for longer duration.
 Higher authorities of British Airways should always design wide range of loyalty schemes
for different consumers. This will aid in developing healthy relationship with them and
making them positive towards brand. Company should link its LP with symbolic benefits
such as previews of new products, VIP events and reward systematic. Furthermore, BA
should include providing some reward points to the travellers on its every booking and these
rewards points should be redeemed against the product. These monetary benefits will attract
more people and they will become frequent buyer of the organisation.
Limitation of study
This dissertation has not focused on behavioural outcome of loyalty of consumers thus, in
the future other authors can examine the behaviour out of loyal consumers reference to aviation
firms. Involvement of cross- cultural data have not used in this research but if in future such data
has been used then it would help author in uncovering facts related to difference ion perception
of customers. Future studies may focus on qualitative data analyses techniques and can involve
more theoretical frameworks in order to generate effective results.
43

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46

APPENDIX
Name
Age
Gender
Have you used services of British Airways in past?
 Yes
 No
Do you participate in loyalty schemes of company?
 Yes
 No
How often do you travel in a year?
 Once in a year
 Twice in a year
 3-5 times
 More than 6 times
What is the main reason of frequent travelling by British Airways?
 Leisure trip
 Visiting friends
 Business trip
What is the level of members in loyalty scheme of British Airways?
 Introductory level
 Intermediate level
 Premium level
Which type of loyalty scheme is offered to you by British Airways company?
 Tier system
 VIP status
 Point system
 Reward system
Have you have taken advantage of redeeming you reward points against the product?
 Yes
47

 No
Do loyalty schemes of British Airways motivate you to book their ticket from company?
 Strongly agree
 Agree
 Disagree
 Strongly disagree
Do you agree that other aviation firms have made attractive loyalty schemes?
 Strongly agree
 Agree
 Disagree
 Strongly disagree
Does loyalty schemes of airline companies influence your purchasing decision?
 Yes
 No
 Sometimes
Having a loyalty card make convenient to travel from British Airways company?
 Strongly agree
 Agree
 Disagree
 Strongly disagree
Do you think British Airways company loyalty scheme are much better as compared to other
airway companies.?
 Strongly agree
 Agree
 Disagree
 Strongly disagree
Does loyalty program lead to increase your loyalty toward British Airways?
 Strongly agree
 Agree
 Disagree
Strongly disagree
48