FlyerTalk Forums - View Single Post - Will Frequent Flyer programs end?
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Old Jul 23, 19, 2:28 am
  #20  
SightseeMC
 
Join Date: Jan 2017
Location: PHX, ICN
Programs: OZ Diamond Plus
Posts: 386
Originally Posted by sdsearch View Post
I was just in Argentina recently for the eclipse and noticed how much ARS has devalued since my last visit there just a few years ago. I just looked it up online and it says their inflation rate is expected to slow to 34 percent this year. But how many FFPs lose value at the rate of 34 percent a year?
I think what we can expect is the Big 3 US and most of the major world airlines to eventually resemble the SWA model: dynamic pricing with a fixed, very limited ratio to cash. This works for the vast majority of flyers, as they use points for domestic (or equivalent) economy flights; in the short term these flights are dirt cheap and miles go a long way. The DL model of extremely limited premium sales will probably spread to those same carriers as well, and to economy flyers our complaining about loss of access to the front of the plane will be just so much whinging.

Now once domestic fares rise again and those miles don't do much (and, like today, can barely be earned by BIS), it will be much more interesting to see how FFPs adapt. If flying 5x a year earns someone all of 9K miles, and all that does is knock $120 off of a $600 ticket, what do they do to change the program? Do they finally completely abandon the randoms and purely go for frequent and high dollar passengers for any and all perks (a la Marriott)? Or do they start providing a useful floor for redemptions?
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