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Thread: 'The next bubble' - travel loyalty programs (Elliott)
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Old Apr 22, 2013 | 2:38 pm
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nsx
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Originally Posted by kokonutz
My prediction is that in 5 years or so all of these programs will have suffered hyper-inflation on points, but that true revenue loyalty will still be rewarded.
A change to revenue-based redemption (not merely revenue-based earning) would greatly curtail the programs' ability to devalue their currency repeatedly. That makes me wonder whether the programs are too addicted to devaluation to allow them to switch to a boring but sustainable model like the new Southwest, JetBlue, and Virgin America programs.
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