FlyerTalk Forums - View Single Post - Have frequent flyer programs peaked?
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Old Aug 28, 2002 | 9:33 am
  #2  
Randy Petersen
Founder of FlyerTalk
 
Join Date: May 1998
Location: Colorado Springs, CO
Posts: 6,540
"On their way out?" Got to disagree there. Any mood chages you have sensed are more likely the result of the current economic times of both the airline industry as well as the seemingly stuck stock market, etc. I've actually notced far more enthusiasm from new posters to FlyerTalk and sense new faces in the crowd. As for marked changes in these programs - i tend to balance changes with any industry - and would suggest there have been far darker days in FFPs. The absolute lowest time ever in programs was back in 1988/89 when major programs such as AAdvantage and Mileage Plus introduced expiring miles which effected every single member. It's really too early to say much about the US Airways announcement since not enough real research has been done to know the extent of its impact. In an indistry of some 80 million members with plenty of outside influence - the airlines themselves - could you not assume that there would always be some sort of ebb and flow? The reality point here might be to look at your own statements and truly appreciate just how far these programs have come. The term "frequent flyer" was true some 21 years ago. Yes, the only miles you eanred were from actually flying. Not sure about you, but a vast majority of my miles come from non-flight activity and I think I'm fine with the occasional restriction and changes for the upside.

The last time many noted that perhaps frequent flyer programs were on the downside was some five years ago in the middle of the dot.com revolution when cheap money and lots of it spawned dozens of new loyalty and travel currencies sure to knock off miles and these programs. Where are any of these challenges today? I don't think anyone would argure that these programs are still king against the challengers and just as airlines used these programs last year to give our spirits a boost (would you think many members would give back the comp and discounted elite extentions, the doule flight miles, the discounted awards?), they will use them again to get through all this. And yes, some will make mistakes in their decisions - we know they aren't all perfect in our eyes - but over time, we'll end up in programs that suit our taste of benefits and awards and if it means changing, so be it. But I would suggest one thing is very sure - these programs are not in their decline.

Anyway, just my thoughts - you have a good question and observation.
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