It's simple economics. Times are tough. Revenue is down. Uncontrollable costs (security, insurance, fuel) are up.

"Loyalty" programs (read: "marketing programs") are a controllable cost.

However you do the math, they need to help the bottom line. So they hike the fees and trim the benefits.

Remember, these programs are based on giving stuff away for free. Do you honestly expect that during a slump they will give away more free product?

The travel industry as a whole is facing a shakedown. Lots of business models will be changing, and that includes a re-evaluation of our beloved free lunch (read: "loyalty programs").

[This message has been edited by Rut Dog (edited 01-11-2003).]