<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Bidkat:
My Ralph's example was flawed -- I should have given the hypothetical Grocery Points a fixed reward value -- 5000 cartons of eggs, say. That would more closely parallel an airline FF program, which promises a specific benefit productrather than a dollar value to be used against a list of awards. FF miles aren't like that because their value is defined only by the airline's redemption schedule. If, instead of miles, they gave you scrip in dollars usable against actual market-set ticket prices, that might be another story. As Watchful points out, any argument that airlines need to raise the cost of awards periodically due to inflation is specious: it's already accounted for because awards are earned for miles flown, not dollars spent. </font>
Glad you responded because I had already thought that you would have had to use the 5,000 cartons of eggs to more accurately parallel the point you were trying to make. Actually your first example is more accurate.
The airlines and others are offering to give you points for purchases and/or certain actions. one thing they are
NOT doing is quarantying the purchasing power of those points. This would be much like your employeer giving you a paycheck for $100 and telling you that no matter how long you keep it he will make sure you can buy 100 dozen eggs with it. This situation is definitely a supply and demand situation. There are many more miles/points earning opportunites today than there were 5 or 10 years ago. Let me ask you another question. Have you ever used a code that was provided on this or any other internet site to get more benefits? For example did you call Hilton and ask to have your card changed to a Gold Card? The internet has created little communities like ours that share information and help each other get ever more points.
Most of these codes are targeted that means for the origional recipient only. Yet frequently the offeror honors all comers. More (Supply), now all of us that have earned these points want to cash in. (Demand)If no allownace were made for the effects of inflation and such soon the offeror would go broke and we will have strangled the Goose hoping to get one more free flight or one more nights stay.... Sorry, you haven't convinced me that the airline is evil. If they are then logically so are we.
For myself I'll not spend any time complaining but instead invest that time in seeking other point earning opportunites so that I can continue to enjoy things like the 6 free nights and free round trip first class air to Kona that I will be enjoying in September.
Thank You, Hilton and Alaska Air!!!
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"A day without Points is like a day without SUNSHINE"
[This message has been edited by Superd1 (edited 12-28-2002).]