FlyerTalk Forums - View Single Post - Proposal: A New Award Redemption Methodology For FFPs
Old Feb 13, 2006 | 7:03 pm
  #26  
MileKing
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Petersen....a reality tour is in order

Originally Posted by Randy Petersen
Two things - the industry needs to re-educate us that the "double miles" award that some of us seem to get hung up on is really not double miles. It is the standard award. When programs invented some 25 years ago, the no capacity controls award was never referred to as "double miles." Reality is that the saver awards are just that - something on sale with limited quantities apply.
Randy, please, enough is enough with the "double miles award is not really double miles" and that double miles awards are "the standard award". You seem to be sounding this refrain more and more lately and this doesn't play well in Peoria or even here on FlyerTalk. The vast majority of FlyerTalkers will not pay 2X miles for awards, whether capacity controlled or not, except in the most extreme conditions such as last minute, have to get there travel.

The airlines have a very long road ahead of them if they intend to make 2X miles the "standard". And the biggest problem isn't even the perception that 2X miles is too much. The biggest problem is that almost no one values miles at 2.0+ cents any more.....that is "old thinking" that even most novices here on FlyerTalk realize is outdated. With credit card and other non-BIS miles making up more than 50% of mileage earned, 2X miles translates to value of less than 1.0 cent per mile. At those rates, the mileage house of cards comes tumbling down as I suspect most people will move from a mileage earning credit card to the now ubiquitous 1% cash back cards. That will put a permanent dent in the revenue and profits the airlines now enjoy from mileage sales, leading to additional cutbacks in award seats, basically the beginning of a never-ending death spiral.
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