Originally Posted by
Pixie-Stix
Maybe my business travel is different, but since I seem to book all my travel 3-10 days prior to the trip (10 is really really pushing it), I pay a higher cost than the average budget consumer. I'm assuming that I pay a higher cost since I doubt the average family of four is paying $1500 for a ticket to Memphis or Chattanooga. Of course my cost for bigger cities is less, but I'm still sure that given the times I travel (peak business times) and the lack of preparation (i.e. 21 days in advance or something like someone planning a vacation), I'm sure I pay the higher than average fare. Given that most of the business travelers in my industry sit in the same boat, I feel that we should be rewarded with FF systems- we are paying the premium. In fact, I read somewhere that as the seat price/mile increases, it's the business traveler who picks up the greater majority of the cost. CO and all the other airlines depend on us 100K+ flyers, and they should reward us for our loyalty.
Like I said before, since I live in central Texas and I have a choice as to the hub I fly to, I will continue to fly AA. At least they provide me with 1000 miles Aus-DFW- even if the mofos won't open up my Toronto seat for an eVIP!
I agree that people like you are picking up a disproportionate share of the cost. And, as such, it would be logical to make the FF program more rewarding to people like you (i.e. make it like hotel programs where you get points/dollar). However, if airlines were to cut capacity enough that the cheapest fair for your route was actually $1500, would you keep flying? Likely, you would have no choice. But the family paying $199 for the trip would stop doing it. Thus, if the airlines cut capacity enough, they will keep those high-fare passengers (who MUST fly) and lose the low-fare paying ones. And once the airlines have reached a supply-demand equilibrium (where they can charge what they want b/c there is no excess supply), they have lost the need to lure people in with benefits (at least in my mind). 100 individuals who fly on 1 $1500 ticket per year each are worth no less overall than 1 individual who flies on 100 $1500 ticket.
J. Edward -- I agree that the industry is trying to cut off the lower-fare part of the demand curve. And when they do that enough, all they will have left (in theory, at least), is the high-fare part of the demand curve. They will eventually cut supply until it meets demand at a reasonable price-point for them.