Hi all,
I have posted this in the Aegean thread, not because it belongs here, but because I found no better place, and in alphabetical order this is the first in airlines.... Maybe the mods can rectify this? Will flag my own post to get this done.
In another thread I just read a post by Dave Noble where the concept of airline "loyalty" programs was challenged. This was in response to yet another post by another member saying that Qantas needs to start valuing "loyalty" from the other side - ie airlines valuing their customers. What struck me as so correct was the simple message Dave Noble had - that these programs simply entice their members to make irrational choices. This is the concept I would enjoy to foster debate about. Because I completely agree with Dave's angle.

It is in my belief that loyalty programs are always designed for one simple outcome - to entice the consumer to stick to the product of said "loyalty" program. This concept is marketed very skillfully. Of course it is - companies research this and hone their offered loyalty product to make consumers choose in their favour. The base thing offered is the accumulation of "points" in whatever fashion these are marketed as. Thus enticing consumers to favour their own product in the gaining of said points. And in the specific case of airlines, there is also the carrot of status - lounges, etc. I have fallen to this trap for endless years - making flight purchases that helped me gain/retain these privileges.

But is it worth it? I feel the clear defining way to evaluate this is simply if the airline grants you this. They are a business. They do noone any favours. So if you get something out of their loyalty program, you are getting less than what they gained from you. This is correct business. They may have crap booking systems, "ridiculous" rules and fares etc, but are they incompetent? If you feel, as many flyers do, that you have a better way of doing things, then you are disregarding the supreme fight they have every year just to stay afloat. And you are pitting their reality versus your own. If they could become better airlines, more profitable, etc, they would. That is their eternal fight.

They just use the modern version of marketing, as proven worthwhile, to gather people to choose them. Using every tool they have. And they all do it. You can march with your feet and choose another airline. The choice is yours. But your individual loss is not a big thing for them. Hence the perception that "loyalty" is one way. The next airline will simply entice you on the same path...

At the end of the day, travellers should, IMHO, recognize they are simple participants in a world that is governed by extremely savvy professionals. If you can find a chink, and extract value, great.

But anyone in this forum that feels they know more than the airlines themselves, you are deluding yourself. They ponder and work this everyday.....