American achieved its largest-in-the-industry status through a mix of pioneering initiatives and aggressive expansion. It introduced first AAdvantage frequent flyer program. AAdvantage is the frequent flyer program of American Airlines. Launched May 1, 1981, it was the first such loyalty program in the world, and remains the largest with more than 50 million members as for 2005. Miles accumulated in the program allow members to redeem tickets, upgrade service class, or obtain free or discounted car rentals, hotel stays, merchandise, or other products and services through partners. The most active members, based on the amount and price of travel booked, are designated AAdvantage Gold, AAdvantage Platinum, and AAdvantage Executive Platinum elite members, with privileges such as separate check-in, priority upgrade and standby processing, or free upgrades. They also receive similar privileges from AA's partner airlines, particularly those in one world. As for “Three-Class Transcon” was aimed at improving American’s competitive advantage in product and service, by improving 3 elements of expanded marketing mix for services: People, physical evidence and process, along with product, price, place and promotion.
Marketing Mix
New Product: More flexible travel schedule, intermediate product, in-flight service, product design, food and beverage service.
Price: Domestic Pricing
People: * Customers- JFK-LAX attracted some of the most influential and glamorous travelers. * People who place high value on comfort and international travel. * Employees Inside AA: Sales personnel, ticket and reservation agents, terminal staff, pilots, flight attendants, ground crew. * Employees outside AA: travel agents, corporate travel departments, AAdvantage members and security analysts.
Physical Evidence: reconfiguring the aircraft into three distinct cabins, larger and softer blankets, redesigned china, glassware, flatware, linens and