Quoting BidCat:
The trouble is that legislators have not quite gotten around to the idea that points and miles are valuable things deserving many of the same protections afforded to real money. But they will.

Oh great, yet another thing for the government to get involved with, just what we need. Then we can have them decide the value, and then we'll have to pay tax at an inflated value that the government will levy. I'm sure the value of an award ticket would be the highest coach ticket the airline sells. Sorry that is an "enhancement" I can live without.

I'm not crazy about the awards requiring more miles, but that is just like many thing in life, not always fair. At least the airlines take a step toward being fair, giving some notice before a change takes effect, and six months enough time to figure out when you might want to take a trip, as you can book a trip up to 12 months in advance. I would rather see mileage inflation rather than limiting even more award seats, which can be done with a whole lot less fanfare than raising the miles required.

My DSL provider just went out of business and although I'm not happy about it, at least they will keep their network operational for 30 days so I can find a new provider. Do I think the government should force them to give me 60, 90 or more? I would love longer notice, but they are going out of business, losing money every day they stay in business, and at least they give me 30 days notice, that is more than be expected by most people.

Now let us not forget when the airlines started cutting mileage requirements. I can remember when domestic award tickets were 30,000 or 40,000 miles instead of the current 25,000. Did anyone complain, or did anyone suggest the government should step in when the requirement was lowered? Using your grocery store argument, years ago I was flying and saving up points for domestic coach tickets at 40,000 miles, so the airline should not be "allowed" to change it to 25,000 any more than they should be "allowed" to change it to 50,000. Or do we only ask for government intervention when something is determental?

Frequent flyer programs change, not always for the better, but I much prefer the free market to dictate, such as was the case when all the airlines lowered mileage requirements for tickets after one program did it. As long as there is competition the system can police itself. Look at how the airlines dropped the $100 standby fee when United dropped theirs. If one Frequent Flyer program gets out of kilter with the others they face defection, and usually change the disliked policy. Free enterprise has a better track record than government intervention, and there are more pressing issues that the government should be concerning themselves with instead of if American can charge 5,000 more miles for an award.

As far as how I value my FF miles, I don't think of them as money in the bank, but more as a rebate for my business. With limited inventory for award seats it is hard to put a real value on the seats. Yes a First Class ticket to London can cost $6,000, it's hard to consider an award ticket to be worth $6,000 as the airline isn't going to give you as an award ticket the last seat that they could have sold for $6,000.

My guess is the inventory of award tickets comes from their lowest cost fare bucket. That would be the logical way to handle award travel. I wish the airlines would be more up front about this, and even say that award travel can be booked whenever L class, K class or N class inventory is available. Southwest is the most honest with their program, having very few blackout dates and if there is a seat on the plane someone can get it with a Rapid Rewards certificate.

As far as grandfathering the miles, for existing award levels that would be a classy move by the airlines, but I don't expect to see it, and really the 6 month notice gives you some protection. Delta still lets Medalion members claim awards under the old system using their old frequent flyer miles. Their 25,000 mile first class domestic award can still be obtained, and that award went away when it became "SkyMiles" which must have been at least 10 years ago. My American account still shows miles that never expire even though they changed their policy (again because of the competition) allowing miles not to expire as long as you fly every 3 years.

So as much as I hate to defend the frequent flyer programs I have to agree that they have the right to change the terms of the program. I don't always like them, but there are a lot of things in life I don't like but learn to live with. There are also examples where the airlines changed something and then realized, or were forced to realize that the change wasn't good and they changed it back. I for one would rather have this system than having the some governmental agency decide if a frequent flyer program could raise or lower the cost of an award by a few thousand miles. At least with free enterprise if I don't like one of the "enhancements" to the program I can vote with my feet and credit card and give my business to the airline that gives me the perks that I like.