Originally Posted by MileKing
Largely because the Choices model is more closely aligned with revenue than the current MP model in that award levels are directly linked to ticket prices, one choice per dollar on the redemption side
SNIP
I would say that is cause for grave concern.
Yes, indeed.
MileKing, very well analysed! That was my first thought when I got the Choices email. Of course, with Choices the coefficient of determination (R2) between revenue and earned reward comes close to 1 while the regression coefficient (b) between $$$ to be forked over to UA and award goes down... A fixed rebate rate of 1% will be the definite end of bargains using FF programs.
The Choice may be a test run to adjust this correlation. If there is success-goodbye miles-goodbye bargains- and goodbye loyalty.
We may end up with a programme for status (miles) on the one hand and awards (choices) on the other hand. The customer will decide if status perks are incentive enough to stick to the airline. Psychology says that a withdrawal of something convenient (here: mileage bargains) will considered negative. We will see if this "unlimited availability" could mitigate the negative effects. In my view no, not at all. Let's hope the best...
Another reasonable way (though also, but less painful) would be to create different levels of awards with different levels of flexibility, like different booking codes.