Originally Posted by
Always Flyin
Do you have a source for that percentage? That seems very high to me.
If you look in financial statements you will see that the airlines state they anticipate breakage of 20%, which I believe is mostly attributable to miles timing out. I guess that is not the same as redemption rate, though. It makes sense that they have to hold those on the books though.
I corrected below. I hate inaccurate stuff on the Internet.
The rough cost of an award ticket to an airline is also given in the financials, at about 15 USD. I wonder how many people will MR if they realised they redeem miles earned at 4cpm which cost the airline 0.06cpm?