FlyerTalk Forums - View Single Post - The Future of Frequent Flyer Programs: What Should We Do?
Old Nov 22, 2005 | 5:39 pm
  #56  
DHAST
 
Join Date: Jun 2001
Location: IAD
Programs: Chase Million Miler, SPG Gold, HHonors Gold, Hyatt Platinum
Posts: 2,729
Originally Posted by ElmhurstNick

I agree with DHAST that the FF programs are here to stay. The elite programs, however, are up for serious scrutiny. Delta and US have botched this in past years. United seems to have learned from their lessons and is taking a more incremental and less confrontational approach.

But if the market shakes itself out to the point where I can routinely pick up an $1800 transatlantic ticket in a class that looks like your typical 757 domestic F service with a 50 day advance purchase and capacity controls, then the days of earning elite status for a $299 ticket in row 68 are going to be gone. You'll still get some miles, but that'll be it.
I've long thought that the key to financial survival is pricing a premium product at a price that people are willing to pay $$$. That would piss off most members of an elite program, but it's the only way to marginalize the bargain basement coach fares. However the elite telephone numbers and checkin lines are of some benefit to the road warrior. I truly believe that a premium product can be priced such that Average Joe can afford it and the airline can actually make money on it. It doesn't have to be much -- a 757 Domestic F seat would be fine for me.
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