Originally Posted by
kungfuflyer
I disagree. Virtually all of my UA flights are 20-25% more expensive than the competition. This is a price I gladly pay for the perks as a 1K. Take the perks away, and I'm gone. All it will do is force UA to lower their fares!
The funny thing about fares the airline industry, especially in today's economic climate, is very price elastic. If all the airlines raise fares, UA will likely follow suit. As the economy slowly continues to increase, fares will rise. Face it folks, airline loyalty programs are slowly declining. The LCCs have enhanced their product, the legacies have cut theirs, slowly moving everyone to the middle. As businesses negotiate corporate contracts with the LCCs and better rates on the legacies, business travelers have less say and choice in steering business one way or another. Likewise, kettles and other price conscious leisure travelers are picking based on price because they can buy all the ancillary products (elite checkin/security/boarding and premium seats) without being elite. The game has changed. The loyalty programs of the 90s are GONE.