UK Loyalty Movement Report: Airline

Airlines: Unpacking the State of Customer Loyalty

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Introduction‍

Previously, Cardlytics defined loyalty as a consumer’s preference for a merchant over its competitors.* We analyzed billions in spending across six industries to measure customer loyalty and spending patterns with both loyal and non-loyal customers.

But customer behavior isn’t fixed—customers shift between loyalty segments over time. Understanding these shifts helps identify churn and informs strategies to nurture relationships and move customers to higher loyalty segments. In our Loyalty Movement Report, we dive into the Airline category to better understand engagement over time by analyzing more than £40B in consumer spend behavior.

Findings:

We looked into purchase data at all Airlines in the UK over the last 8 quarters (Q1-23 through Q4-24) on a quarter by quarter basis to see whether even the “most loyal” customers showed changes in their purchase behavior.

Segment Movement

Of the portion of each customer segment that is non-lapsed, those that are loyal to a specific airline show the strongest brand retention - 31% remain loyal quarter over quarter. In contrast, Tied and Prefer customers demonstrate greater variability in behaviour, with only 4% and 12% respectively maintaining their previous preference.

Loyal customers tend to remain consistent in their airline choice, likely driven by the strength of airline loyalty programmes and exclusive incentives. However, Tied and Prefer customers show clear signs of behaviour fluidity, highlighting a key opportunity for targeted campaigns to drive conversion toward brand loyalty.

Lapsed behaviour is high across all segments—65% of previously loyal customers lapsed, and similar rates are observed among Tied (63%) and Prefer (67%) segments. This reflects typical airline purchasing patterns, where customer loyalty can be disrupted by pricing, availability, or external factors, regardless of prior loyalty classification.

Airlines Leaky Bucket 

Airlines are acquiring new customers yet even more existing customers are moving into the lapsed tier. This cycle is expected based on typical consumer behavior for airline travel quarter over quarter but reinforces need to nurture existing relationships.

Takeaways:

Airline marketers’ inherent focus on nurturing loyal customers is well-know and consumer spend data show it’s working - Loyal customers tend to stay loyal. But huge opportunity exists with customers who are not loyal to any specific airline and could be lured through greater incentives. To stay top of mind, marketers must continuously nurture relationships, understand customer needs, and offer seamless experiences. To foster loyalty with your customers, consider these recommendations:

• Use an “always on” strategy to keep customers engaged, regardless of purchase frequency.
• Regularly update/refine customer segments and adjust reward offers to keep them engaged.
• Use targeted campaigns to boost loyalty and revenue.

Cardlytics can deliver a comprehensive Customer Loyalty Analysis with insights into customer behavior and movement across defined loyalty segments. Contact us for more details.