FlyerTalk Forums - View Single Post - Revenue based programs coming, according to this article
Old Mar 28, 2013 | 8:28 am
  #18  
pinniped
A FlyerTalk Posting Legend
20 Nights
40 Countries Visited
3M
20 Years on Site
 
Join Date: Jul 2002
Location: MCI
Programs: AA Gold 1MM, AS MVP, UA Silver, WN A-List, Marriott LT Titanium, HH Diamond
Posts: 53,010
Originally Posted by Travelergcp
It wouldn't have to be too high of a revenue minimum to keep the mileage runners out. Just say nobody gets top tier for under 7 CPM in spend. I have to believe the ranks of top-tiers earned at really low CPMs has got to be really small though. And they're all on FT.
Why would an airline want to keep a mileage runner out?

For one, I totally agree with you - they are statistically insignificant to the overall pool of elites. And second, a happy mileage runner could become an evangelist for your brand in a way that your typical business traveler never could. Somebody who loves United and/or MileagePlus enough to fly around in their planes for no other reason than to collect miles and status might also be someone who would tell others about the experience.

The fact that they collected more miles per dollar than the typical business traveler is a tiny cost to pay. After all, by the very method with which mileage runners seach for fare deals, they'll likely to end up on off-peak flights anyway. The airline isn't *losing* money on them. They're simply beneficial in a different way than the normal business traveler.

(For the record, I am not personally a mileage runner.)
pinniped is offline