This work deals with loyalty programs, in airline industry mostly known as frequent flyer programs. Most airlines today offers a program in which customers can earn points as a reward for their tickets flown. The first part of the work is devoted to a research of literature on the subject, the development of loyalty programs , expected effect and their impact on clients and company profit. The second part focuses on the application of theoretical knowledge in practical study of loyalty programs of two major European airlines - Air France and Lufthansa. A practical analysis and comparison of the two programs is carried in terms of comparing the parameter and differences of the programs.

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