FlyerTalk Forums - View Single Post - Are all "points as good as cash" loyalty programs inevitably doomed?
Old Feb 20, 2015 | 3:37 pm
  #51  
zkzkz
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Join Date: Dec 2007
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Originally Posted by GrayAnderson
(1) There will always be open seats to fill somewhere. Nobody running regular service on a route is ever going to quite get to 100% load factors in all classes of seating on all flights
Have you never flown Ryanair? Anyways will people continue to value your points if they can't redeem them for flights except on rare occasions?

(3) Modest devaluations, on a regular basis, are to be expected due to ticket price inflation so long as reward "prices" (in terms of points needed for a given redemption) aren't actually pegged to ticket prices.
This does not follow and it's precisely because reward prices are not pegged to ticket prices.

Miles in most programmes are earned based on distance traveled. If a TATL flight costs 50k then it means you get one free TATL flight for ever 5-6 TATL flights you fly depending on route. It doesn't matter what the ticket price is, you're getting a fixed percentage kickback rebate on that.

If you devalue reward prices then you're decreasing the percentage rebate regardless of ticket price.
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