TLDR: WATCH THE VIDEO (click above)
Airline loyalty programs are ingrained in how we travel. But it wasn’t always that way. In fact, in 1980 there were no loyalty programs that promised you free flights. And then in 1981, American Airlines launched their program, and 10 days later United released MileagePlus. 🤔
What happened?
Most companies don’t operate in a vacuum. They look at what their competitors are doing and react. This is what United did when American Airlines launched their program—they reacted.
It’s also what people do. We don’t operate in a vacuum. We look around to others to get cues on how to behave and what to care about. 👀 Robert Frank calls this ‘behavioral contagion’. If your neighbor gets solar panels on their roof, you’re more likely to get them, too. 💡
And this is the genius of airline programs. They make the invisible visible. 🫣 In normal retail loyalty programs, I have no idea what your status is or even if you’re participating in the program. But with airlines, I know. I know because you get to board in Zone 1 vs. Zone 4. I know because you have access to a fancy lounge. This is a visible display of what you care about and your status.
And just like United followed American, I will take the cue and follow you. Airline loyalty programs offer something others don’t: public recognition. 🤓 Whether it’s boarding earlier or access to exclusive lounges, these visible symbols make others aware of your behavior and more importantly, your status.
And maybe this is the point: loyalty programs are about status, not perks. What people value in them is tangible, visible benefits that others can see. Think about how you can tap into that for your product and you’ll be flying high. 👩✈️
👉 3 things I cover in this teardown:
🛬 The psychology behind airlines flaunting visible perks and our innate need for social recognition
🛬 Understanding the emotional weight of unclaimed airline miles and why they feel different from other rewards
🛬 How airlines craft an illusion of mile ownership before you even claim them, driving deeper loyalty & engagement
See you next week — don’t forget to claim your miles. 👋
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Questions about your product? Email kristen@irrationallabs.com.
United MileagePlus: What All Products Can Learn From How Airlines Use the Psychology of Loyalty 🛫