Originally Posted by
flying_fozzy
Maybe miles are a problem? The banks just keep giving them away. If they are thrown 100s of 1000s of miles for opening up a credit card... what should we expect?
The banks pay for the miles of course - it's a revenue stream for the program. At 1 to 1.5 cents per mile at bulk rates, when ADCB gives out a 100,000 mile bonus, that's $1000-$1500 that ADCB would pay to Etihad in cash.
I'd imagine the same goes for the ADCB 50% off vouchers, i.e. EY bills the bank for the 50%.