But points selling is a large source of income for these companies, which is why they do it.

"In the beginning" all of these programs were more of a reward-type for business travellers who spent big bucks flying First Class and staying in suites on business trips to use them to experience the same on their occasional leisure trips on their own dime.

However, as businesses tightened travel spending, people started flying Coach and staying in regular rooms. Airlines and hotels saw their revenue shrinking as more and more seats and rooms are filled with people who spend a lot less than they did, as well as leisure travellers who spend as little as possible.

At that point, these programs ceased being a reward program and became a loyalty program - fly Coach four times and get upgraded to First once. Or spend four nights in a King room and you can get one night in a junior suite. They also became a source of revenue, selling miles and points to credit card companies, retailers, and service providers.

So... We can all go back to always spending $400 a night on a suite when we travel and $4000 a trip to fly in First and be rewarded for that revenue, or enjoy $50 hotel rooms and $200 flights and have to gather a ton of points to enjoy better accomodations.