FlyerTalk Forums - View Single Post - Likelihood of AAdvantage becoming a revenue based system [Speculation]
Old Sep 9, 2012 | 10:14 am
  #10  
brp
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Originally Posted by ihavebeenseen
It is entirely possible that a cheap EXP costs AA more to service than the amount of revenue they take in from said person.
In general, I would think not. Remember, we're talking about incremental cost. We get EXP each year for about $7500. And that's without trying too hard and no MRs. Even with upgrades and such, I think they're making money from us. They're only giving us upgrades if they think they can't sell the seat, so that's not real lost revenue. Sure, they're not making as much from us as the $20K EXP, but I don't think they're losing.

I'd imagine that the number of EXPs that get it as cheaply as we do is small, and the true MR $3K EXPs far fewer. It just may not be worth the effort to change the program in a case like that. In this case, making a change the appears negative on the surface (and this would surely be a downgrade to the program), may not make business sense.

Of course, if my suppositions are incorrect and there really are a lot of us, maybe something will change.

Cheers.
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