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Thread: SAS 4 Excellence strategy
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Old Nov 15, 2011 | 6:53 am
  #6  
Amexpat
50 Countries Visited10 Years on Site
 
Join Date: Sep 2010
Location: OSL
Programs: LH SEN, SK Silver, DY Priority
Posts: 444
Originally Posted by uahero
That's a point - EB is about shopping but not flying.
Good point. In recent years over half my EB points have come from shopping, hotel stays and various promotions.

Don't know the economics behind EB, but it may be, overall, a revenue generator for SK. All the stores, hotels and other 3rd parties have to pay SK for the EB points that they give away. I assume that SK charges them more than the redemption costs. SK also gets the float of the value of EB points not redeemed plus a windfall for EB points that expire.
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