Originally Posted by
El Boocho
To measure it exactly would be difficult, but the airlines have enough data to calculate profitability based upon historical measures. I'm not so sure that to measure by revenue is a bad thing. With all the people out there who travel internationally on J tickets, I'd never be a top tier elite. 3RT international J tickets is probably more than I spend all year.
Yeah, the could do it historically, but then they'd also have to publish their profitability data for all their competitors to see. I think revenue based would be better anyway...costs aren't under the customer's control. The point of the loyalty programs is to increase profits...so why not incentivize revenue directly? That's what the hotel programs do, at least for point earning, though not for status.