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succeed in the United States, compared with only
around 30% of new independent businesses.
freedom
LIONEL BE Â CHEREL, UK
Being free to do whatever one wishes is an
important motivation for modern tourists.
Freedom of movement is the human right to move
by choice among countries and destinations.
However, it has already become a matter of
discussion due to negative environmental impacts
at destinations caused by tourism growth.
freedom, perceived
TANJA MIHALIC Ï ,SLOVENIA
Freedom is a complex phenomenon that includes
political, social and philosophical dimensions. An
important component is the psychological experience
or perception of acting voluntarily. To have
leisure, recreation or tourism, people must
perceive that they have more than one alternative
for action in a situation. The perception of freedom
is seen as a fundamental need and essential to
health and well-being.
ROGER C. MANNELL, CANADA
frequent flyer programme
Airlines woke up to a brave new world in 1978.
After forty years of protected markets, the
industry had to learn anew about competition. As
new carriers entered the market and passengers
demonstrated that they largely perceive airline
service as homogeneous, competition increased
and prices plummeted. Therefore, airlines confronted
a classic marketing problem, namely how
to differentiate their services to the consumer and
turn the basis of competition away from price. For
American Airlines and others thereafter, the
answer was simple: creating an airline and industry
version of that venerated marketing tool, trading
stamps.
Frequent flier programmes reward passengers
for brand loyalty. They accumulate points for using
a given airline. Once enough points are accumulated,
they can be redeemed for awards such as
upgrades or `free' flights. The programmes have
extended well beyond this simple beginning. The
first extension was to broaden carrier participation
from one carrier to an alliance of carriers. Thereafter,
the programme was expanded to other
industry segments. Today, such programmes extend
well beyond the original industry confines.
Credit card companies and long distance telephone
services have formed alliances with airlines. Signing
up with such a company earns bonus points,
while using the card or service earns more frequent
flier points. A large array of goods and services
earn points in, and can be purchased through,
frequent flier programmes. The United Kingdom
and Australia are among the many
countries with frequent flier programmes. True
globalisation probably is not far off. As good as
they seem to be, frequent flier programmes are
fraught with risks for the carriers and their allies.
The costs of redeeming frequent flier awards may
soon exceed the value they bring to the carriers;
according to some, this may already be the case.
Although frequent flier programmes have proven a
boon to travellers and carriers, this may not
continue.
Further reading
Brancatelli, J. �1996), `More bang for frequent-flier
bucks', Fortune, September 30: 278ff.
Brown, M. �1992), `Fighting for the frequent flier',
Management Today, April: 85ff.
Browne, W.G., Toh, R.S. and Hu, M.Y. �1995),
`Frequent-flier programs: the Australian experience',
Transportation Journal 35�2): 35±44.
KEVIN BOBERG, USA
friends and relatives see visiting friends and
relatives
front stage see back stage
frequent flyer programme 241