According to the Frequent Flyer Services website, the idea for frequent flyer programs is credited to Bill Bernbach of advertising agency Doyle Dane & Bernbach. In 1979, Bernbach's agency brought the idea of offering a loyalty fare to American Airlines best customers.
In 1980, Western Airlines began offering its customers a $50 travel certificate after five trips with the airline. Frequent Flyer Services reports American Airlines launched its program in May 1981 and was quickly followed by United Airlines and Delta.
Deregulation of airline fares, coupled with increased computer database technology allowed airlines to introduce frequent flyer programs. In 2010, over 70 frequent flyer programs are offered by airlines around the world, according to FrequentFlyer.com.