Originally Posted by
Nicoolio
I believe the reason airlines went with miles was two-fold -- first being that they didn't want to create a taxable event for customers and using dollars would put the programs front and center with the IRS. Miles are harder to value.The second is at the time, I don't think the airlines could easily track revenue. Mileage was easier as it meant base miles for each segment were set once and could be easily tracked.
Yes, taxes and technology are likely factors too.
Originally Posted by eponymous_coward
Note that VX and B6 went with points (and eventually WN decided to go there too). Something where you are effectively getting a modest rebate on travel is nowhere near as sexy as Krug and caviar in lie-flat showers but having a system where it's easy to get SOMETHING without having to visit Walmart with $10k in gift cards every week has benefits too. "Oooh, I got a free $100 one way ticket to Vegas!" Small incentives for occasional fliers is pretty smart (and DL is actually on to something with that aspect of SkyMiles).
Fair point.
To me the good old days were good because I could buy coach and fly domestic F or int'l C by upgrading at time of booking. That was important because F or int'l C were 3 to 10 times the cost of coach.
But the good current days are good because I can buy domestic F or int'l C for 120%-200% of the cost of coach so don't need the upgrades (I am sitting on tons of AA and UA upgrade certs I will never use).
So it's a bit of a wash, honestly. Not going to sell a lot of credit cards with THAT analysis, though.
