<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Rut Dog:
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).]</font>
True, but I think the perspective you give is very short term. I don't think that Starwood and Hilton realize that once I go over to Princeline/Hotwire, I'm not coming back. Burn me once shame on you, burn me twice shame on me.
Airlines are going the same direction, I'm afraid. If American takes away the benefits that I value most (upgrading any fare and double mileage bonus) my loyalty will shift to the bottom line, even if it's a $5 difference.