The Frequent Flyer Trap

Back in the day, earning and redeeming frequent flyer points was a straight forward thing.  No games, no gimmicks and an easy to understand set of goals.  Fast forward to 2013 and next year and a monster has been created.  Airlines, hotels, car rentals, credit card companies and even florists have jumped in on the mileage lure.  Almost anyone that carries plastic is suddenly eligible for mileage awards.  Status became the next big thing as airlines created the tiers that separated the masses.  Hundreds of billions of miles are being accumulated and hoarded.

Now that the masses are in, airlines quietly move the goal posts every year.  2014 promises to be one that miles are significantly devalued.  With reduced capacity and more limited seats, mileage redemptions keep getting more difficult with many far more restrictions and multitude of fees.  It takes more miles to fly anywhere.  To achieve status, airlines will be measuring the dollars you spend doing so rather than the miles you fly.  While some of these changes are necessary, airlines might be killing the goose that lays the golden egg.  More consumers are realizing that loyalty comes with cost and that the reward may not be worth the price.  We might be reaching a tipping point if the airlines continue to demand more and offer less. www.premieretravel.com