FlyerTalk Forums - View Single Post - Will Frequent Flyer programs end?
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Old Aug 4, 19, 4:29 pm
  #25  
javabytes
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Join Date: Apr 2009
Location: Bye Delta
Programs: AA EXP, HH Diamond, IHG Plat, Hyatt Plat, SPG Gold, MR Gold, Nat'l Exec Elite, Avis Presidents Club
Posts: 15,228
If consumers were rational, they’d see that as awards increasingly become dynamically-priced/fare-based, there is zero reason to be putting spend on a 1x airline credit card that locks you into one points currency when a 2% cash back card provides better value with fewer restrictions. And that would be a real problem for US airlines, whose mileage sales are a better business than selling transportation.

But fortunately for them, consumers seem to be irrational. I can’t count the number of people I’ve seen blow absurd quantities of miles on cheap cash tickets, because they see it as a free ticket and that decimates any rational thought inside their heads. If they looked at a 25k coach round trip as costing $500 (because that’s how much cash they’d have on hand if they put 25k spend on a 2% card), they’d be appalled at the value the airline is offering, but instead they’re just delighted because they got a “free” ticket.



Last edited by javabytes; Aug 4, 19 at 7:24 pm
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