In the digital world loyalty can work as a differentiator a way to keep consumers amid fierce competition from many merchants But loyalty also comes at a price and as airlines enjoy strong demand one major carrier is upping the cost for its top customers to earn the best benefits American Airlines has changed the rules of its frequent flier program Achieving AAdvantage Executive Platinum status the top tier of the carriers program now requires 15 000 worth of ticket purchases annually up from 12 000 according to reports The change takes effect on Jan 1 This move shows the airlines continue to see healthy demand Susan Donofrio airline analyst with Macquarie Group told CNBC We are seeing no softness in ticket prices and all seats on a plane now have greater value Or to put it another way That means it now costs airlines more to award a seat to a frequent flyer So the more members who have top-tier status the more seats airlines will have to award in the future American Airlines follows the example of United Airlines in requiring frequent fliers to spend 15 000 to reach top status which is also the longer-standing threshold amount for Deltas Diamond Elite level Loyalty Importance Those changes come as US carriers are bringing in more from loyalty and credit card programs In the second quarter of 2018 for instance major carriers in the US earned more from loyalty and credit card programs than they did in the same period the prior year And that is happening amid an anti-cash trend among airlines American Airlines which stopped accepting cash payments for snacks and drinks on flights in 2010 also wants to eliminate cash for checked or overweight bags as well as other fees Airlines arent the only part of the travel industry undergoing changes in loyalty In response to passengers increasing use of ride-hailing apps like Uber and Lyft many airports seeking parking-generated revenue are launching or developing loyalty programs that offer free parking after customers use an airport lot for a certain number of days In addition some airports are also allowing drivers to reserve spots close to terminals and also offering half-off sales and even free coffee for loyal travelers That includes Dallas Fort-Worth International Airport where parkings share of the facilitys revenue recently declined to 324 percent of its overall income from 34 percent a year earlier Thats why the airport now allows travelers to reserve specific parking spots online as well as pay ahead through the airports website or mobile app The airport also introduced a pricing model that rises and falls with demand Just like an airline seat or hotel room that goes unsold its perishable said John Ackerman who heads global strategy and development for the airport He said that DFW might also introduce perks like a free Starbucks coffee for those who park at the airport often Loyalty Revamp Starbucks of course is often held up as a model of how to do loyalty in a fast-moving retail environment that is increasing dependent on mobile Active Starbucks Rewards memberships grew to 153 million in the last financial quarter up 15 percent from last year and the strongest growth rate in seven quarters according to Starbucks President and Chief Operating Officer Rosalind Brewer in a recent call with analysts But one need not sell upscale coffee to grasp the potential positive impact of loyalty Subway in a sense is on an opposite part of the spectrum but even that food chain recently revamped its own loyalty program to keep up with the times as described in the new PYMNTS Restaurant Readiness Index Subway launched its digital and in-store MyWay Rewards program for North American customers in March 2018 and the program has been growing rapidly MyWay which replaces an older more limited version comes with features that are online or mobile-only The updated program is a result of more consumers expecting to have greater interaction with their chosen brands and that this interaction will save them money Whether with QSRs airports or carriers loyalty is vital to continuing success but dont count out more changes to loyalty programs as technology develops and the economy shifts LATEST INSIGHTS Our data and analytics team has developed a number of creative methodologies and frameworks that measure and benchmark the innovation thats reshaping the payments and commerce ecosystem Check out our latest report in partnership with Visa Related Items airlines airports coffee chains loyalty programs News QSRs restaurant rewards Retail rewards programs