This program is for the Kettles who fly Outside once a year. When they see AS pricing out at $400 more a ticket, they are supposed to think, "...but we get free baggage" and then buy the ticket on Alaska instead of DL or CO/UA. Plus, Alaskans are suckers for stuff that allows them the boasting rights of showing they are in fact really from Alaska. In the dreams of the AS marketing team, 'do you get a PFD' will be replaced with 'do you have a Club 49 card'.
A tangible program benefit for elite AK residents would be nice.