Potential cost savings of frequent flyer miles for business travel

The mileage redemption strategy is a procedure used by many business firms to reduce air travel costs, in which the frequent flyer miles of traveling employees accumulated during business trips are applied to their future business trips to obtain ‘free’ air tickets. This paper presents a framework that investigates how the frequent flyer miles can be used in the most effective way to reduce air travel costs by those firms that are either using the mileage redemption strategy or considering the use of the strategy. The framework can be implemented quite easily by a spreadsheet software such as Microsoft Excel.