FlyerTalk Forums - View Single Post - Are all "points as good as cash" loyalty programs inevitably doomed?
Old Feb 19, 2015 | 8:25 pm
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nsx
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Originally Posted by Andy2
Kind of like the lobster that does not jump out of the water because it is warmed up gradually.
If the airlines do it that way how can they tell when you are ready to eat?

The 3 cases I gave apply similarly at 0.5 cents per point paid by the bank. You are right that such a price all by itself forces a big devaluation.

That deepens the mystery of how Southwest ever thought it was a great idea in 2011 to sell 1.67 cents of good as cash travel credit for 0.5 cents or less. I can't get my mind around that. They could have dropped the Chase partnership right then and made much more money.

The people running these programs are pretty clever, so I must be overlooking crucial aspects.
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