It's not illegal. It is against the rules of most major airlines & hotels.

The IRS won't look too kindly upon such a business either. Which may hurt all frequent traveller programs, if the IRS decides that they need to tax this "resource".

I hope they go out of business soon, or get busted by the airlines.

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"If life doesn't offer a game worth playing, then invent a new one."
-Anthony J. D'Angelo