FlyerTalk Forums - View Single Post - Should I hang on to my awards? worth more with high oil prices?
Old Apr 18, 2008 | 11:10 am
  #12  
joshua362
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20 Years on Site
 
Join Date: Oct 2001
Programs: LTP, PP
Posts: 9,110
Originally Posted by ckpeter
Another non-fuel related reason to use up your award quickly is the planned overhaul of RR in 2009. While any change can go either way, I think that chances for the RR program changing for the less favorable side is greater, since Southwest is now seeking codeshare with other partners and may need to adjust their reward structure to match that of other legacy carriers.
Herein lies the very basic problem with all FF programs. The providers have done an outstanding job convincing use that points, miles, awards have some sort of static, comparable bankable value for the future.

But in practice, this is not true, rate and values can be changed unilaterally at any time subject to their one sided whims. I've been through many dramatic devaluations on the hotel side. Its like buying a 5 year CD at 5% and being told the rate is now 2%, you are still locked in for 3 more years and the principle is cut in 1/2 too.

Earn and burn baby.
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