Originally Posted by DLSTR
The way FFP are designed is in my opinion a big error, as these programs were rewarding frequent flights instead of rewarding high spending. This was not that big a problem when they were introduced in the early 80s, as fares were substantially higher and less diverse than they are today. For example there were no 199$ transcons during that time.
You bring up an interesting point. I have not been a FF member in the early days of FF programs (AA in early 80s) nor did I fly before deregulation in the 70s, but I would imagine that at one time, airlines charged fares based on something more seemingly logical - how far you are actually flying. Many carriers in other countries do this - shorter flights cost less than longer ones because the internal costs are higher for longer journeys. If that was the case when FF programs started, then the miles being based on travel distance made sense, because it DID correspond to fares. Once deregulation set in and airlines started charging fares that have absolutely nothing to do with distance flown (and hence their costs of flying you there), the disjoint between spending and awarded miles started. The hotel programs, on the other hand, do it all based on revenue.