<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by JS:
As discussed before, back in the old days, airlines did reward their frequent flyers, although they did so subjectively if that makes any difference. Because the fares were regulated back then, a FF program based on revenue was basically the same as a FF program based on miles flown.
Today's FF programs are based mostly on miles flown rather than revenue, for various reasons. I imagine the airlines would rather reward revenue. After all, the point of the FF program is to keep revenue from going to competing carriers.
[This message has been edited by JS (edited 05-23-2002).]</font>
Some interesting points.
When I used to have to fly ABE-BOS on US : a flight of less than 500 miles, it was often more expensive than an almost 3000 mile flight from ABE-LAX. Basically, the business routes (especially without Sat. night stays) are inflated to gouge the business traveller. I think that is why the airlines will recognize status levels by segments or miles: some business travellers make them a lot of revenue on short segments while getting minimal miles for the trip.
The miles thing has become more appealing to the miles chasers who constantly try to find ways to gain more. If it were solely based on dollars spend, say bye-bye to playing the game and the mileage runs.
It is funny how loyalty programs have become so prevalent even outside the airline industry - everything from Subway cards to those annoying grocery store cards that you have to sign up for just to get the "regular" price.