Friday, April 18, 2014

Moving the Goalposts: Mileage Games

Recent headlines continue streaming every week that airlines are "fine-tuning", "modifying", and "tweaking" their mileage programs.  All are euphemisms that basically says that your airline miles are being devalued and you need to spend more dollars flying to attain status and get mileage credits.

While occasional "adjustments" may be needed from time to time, airlines are outright cutting the benefits.  Non-travelers are squeezing out travelers without having to fly one mile.  Credit cards have been using the frequent flyer carrot for years trying to entice consumers to put everything they purchase on credit cards to earn miles. Airlines have participated in the act by co-branding and giving those who do actually travel additional benefits such as lounge passes, free baggage and priority boarding.  Has success of these programs come in the way?  Yes absolutely! So many travelers now qualify for priority boarding, free baggage and other benefits that it has become so diluted forcing airlines to raise redemption levels to do anything.  The "free" tickets will cost you real money to issue, change or even cancel tickets.  Frequent flyer programs have turned into marketing monsters with millions of miles hungry and addicted consumers altering their purchase habits and flying for the elusive awards.

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