Originally Posted by
MarqFlyer
I won't dispute that many flyers book based on price. But I beileve you overestimate this factor, and underestimate the importance of miles. If you properly consider the fact that many flyers DO very seriously consider miles, then factor in the $$ that airlines make selling miles, you will have the answer to your question of why airlines keep the programs.
OK, but can you counter my argument: the reason they don't get rid of frequent flyer programs is inertia. If only one, or just a couple, airlines decided to get rid of them, they would be screwed because the ones that did would have a competitive advantage by offering something in addition to what the others do. But if all, or most, airlines decided to get rid of their programs, it would mean that the airlines would just compete on price.
So, in response to your question, your theory that "because the programs exist they must be worth keeping" is not necessarily or even obviously true. My theory can just as well explain the outcome we're witnessing.