Originally Posted by
tommyleo
I don't think it's that simple.
US has been making a LOT of money selling "cheap" miles for years. And if that strategy were not profitable, US would have stopped selling miles by now.
But US certainly keeps selling those cheap miles. If those miles suddenly become far less valuable (with a steep increase in the award chart), US will sell far fewer miles. That's not necessarily a "win."
That's a business decision - how many fewer miles will we sell if we up the mileage requirements for *A awards this much? Or will higher mileage requirements mean
more miles sold? Much like yield management, the object is to take in the most money from selling miles while spending the least providing *A awards. It's not just a linear relationship nor does it have the amount of historical data to rely on that yield management has.
Jim