While we're on the subject of leveraging the local DC market, why not a partnership with metro? FF points redeemable for trips on metro... local destination restaurants .. sporting events ..
But don't overlook the importance of having some really high value awards that will take alot of savings to achieve... something really aspirational that will capture the imagination of members who do book very frequently. Awards that take only a flight or two mean that a traveler doesn't have to consistently choose your airline. People don't understand sunk costs well and will continue to book especially as they feel closer and closer to achieving something, especially something they really want. So as you offer small rewards also offer something worth saving towards. Even without major airline FF partnerships, there has to be some way of offering a "dream" award. I think space at 10 or 20 million points is just silly.. flights on the Concorde used to be aspirational... perhaps some partnership with a foreign carrier would be doable -- if only to redeem for a single high end award that few will ever achieve -- or all-inclusive vacations (fly Independence Air to the destination, get free rental and hotel at the destination, maybe Disney in Florida or California).
[This message has been edited by gleff (edited Mar 07, 2004).]