Originally Posted by
greg99
I struggled to explain this to Mrs. Greg99 (who is smarter than Greg99) this morning.
I'm quite convinced that the only goal behind this is to directly enhance profitability, irrespective of any secondary negative effects of things like reduced loyalty and problems re: *A membership, and their models show that it will be successful.
Time will tell.
Greg
Greg- First the important stuff- Mrs. Greg99 is ALWAYS smarter than Greg99.
As to UA- the goal of a loyalty plan is to enhance the underlying product to attract new customers and increase the use by present and retain them. If UA felt the MP policy was poorly set up, it should scrap it and come up with one which accomplishes their goals. In the aviation and hotel business, the prices fluctuate depending upon demand and competition. Yes, enhancing profitability! That means you need the big spenders and the tadpoles. United doesn't think so and when a larger number of us decrease our volume or defect, they will understand it (maybe). Their models are broken.