One Pass Reward Changes - When or If??
 

With the sharp increase in ticket prices on all of the airlines related to fuel (The ORF/FLL ticket I bought 30 days ago has now doubled), what are readers' thoughts on increased mileage requirements for One Pass rewards?? Who will be the first to implement increases - UA, AA, DL, CO?? Will rewards be even harder to come by than today, or easier due to increased empty seats?? Lots to think about!!!!

Airlines have enough bad press; it would surprise me if they raised the mileage requirements for reward redemption. I imagine that airlines want to keep people flying, so rather than play with mileage, I think they'd be better off to make rewards less available--something that I think could well have happened over the past five or so years. Another approach which seems to be gaining popularity is to keep reward levels the same, but introduce a new "more expensive" class that's easier to redeem. The airlines can still market the fact that they offer low mileage reward, but in reality one has to really splurge to make a mileage redemption!

Delta has already started in this direction with the 2x rewards no longer having last-seat availability. CO has similarly raised their point requirements for BF slEasyPass rewards to Asia and Europe. I'm not sure which carrier will be the first to ditch the 25K reward completely, but revenue management is already forcing the average redemption price up with the 2x availability, so they may not need to formally remove the level for some time yet.

In one sense flyer miles are sort of "inflation proof" in the sense that you earn miles based on miles flown. (As an example, think about a case of hyperinflation where prices rose tenfold - suddenly a domestic flight might be $3000 or more. But it still takes you the same amount of time to earn your free flight so no need to adjust.)

However, with miles earned based on currency (such as credit card earning miles), they are no longer inflation proof.

Now, in a case of hyperinflation, if I spend $25,000 on a new plasma TV, I will receive a free flight as a bonus (while in the past, I would have had to buy ten of those TV's to earn a free flight).

That's the point I was making. I think it's a much better way for airlines to introduce higher redemption levels without officially changing the lower reward level. I would be surprised if any carrier ditched the 25k in the current travel environment!

For non-Elite infrequent travellers - 25K miles takes a good while to achieve. Could take 5 years to earn. So I think the 25K mileage point is likely going to stay - just harder to redeem.

Plus as ticket prices go up - you are paying more to earn those 25K miles.

Part of my thought process was the many millions of miles that were earned with much cheaper ticket prices. I'm wondering if the airlines will consider the current situation to be a windfall of sorts for those of us with big unused mileage balances. I'm already seeing folks selling miles on eBay for some pretty big bucks. The jump in ticket prices has caused me to consider using some of my miles for domestic travel instead of exclusively for overseas trips and upgrades.

However, I suppose that if the jump in ticket prices creates a lot of empty seats, they won't mind filling them with reward passangers. Whatever happens, I think it will be interesting to see how it all shakes out.

I don't think we're going to see too many mileage runs at these prices.:D

I wonder what the ratio is of miles earned through flying versus through other avenues. With the number of miles that are sold to CC companies and the like the cost of earning them hasn't gone up that much, though the cost of earning them in the air definitely has.

Ticket prices haven't jumped up that much. The really discounted fares were available right after 9/11.

Difficulties in achieving redemptions has been around for years now, so I don't see that there is very much new occurring.

What I'd like to see a carrier do is to offer more mileage co-pays. Right now, if you really have to travel, most carriers charge you a premium in terms of miles even if you plan ahead. Maybe they should think of a way to charge cash instead.

I think CO and all the airlines really need to raise the milage requirements for reward tickets to compensate for the fuel prices..This is something I really havent heard talked about but its worth the airlines doing it to help cover thier costs..@:-)