FlyerTalk Forums - View Single Post - Frequent flyer incentives & moral hazard - research
Old Jul 7, 2022 | 12:27 pm
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BearX220
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The FF programs as originally engineered were meant to change buying behavior. For a long time they did that successfully for many customers, me included. It is no big insight to show that FF programs induced people to spend unnecessary client / company funds to stick with a favored airline, or take unnecessary trips in Q4 to requalify for status, or in my case fly in the wrong direction to get home from a business trip in order to compile more PQMs.

Today, with PQD thresholds and miles earnings rates married to dollars spent, not distance traveled, and the value of status much eroded in many cases, the programs are IMO less potent influencers. FF miles are more like green stamps or the Costco rebate check: nice to have a smattering here and there, but I'm not going to run out and buy things I don't need to rack up more.
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