I've never been able to find any other company's breakage percentage. If you can post some numbers (and the sources), I think a few of us might find it interesting. The breakage number for Starwood has been coming down in the six or seven years I've been watching it - when I first started, it was 61%. But I'm not sure what you mean by what the impact on loyalty is. Breakage is an accounting (or actuarial) estimate - it shouldn't have anything to do with program loyalty, unless there's been a change to the program. But I agree that it seems too high.

What's more, with the constant devaluations of points, his points probably won't be worth much 15-18 years from now. Just think of the difference between a dollar now and a dollar 15-18 years ago! Points will probably be worse.

i guess so....but i think the way he looks at it is that once he is retired after 15-18 years he would have a healthy balance of points & would never have to pay for a hotel room for the rest of his life....

look at it this way....if he has a balance of 10 million points at the end of it all then taking an average of 18k points per stay (average of cat 4-7) he would have over 550 free nights....even with devaluations the 550 nights would come down by a 100 or so....450 free nights is still a lot....

Yeah, this is the kind of guy that will die young, and no one will get any use out of his points. Sad, very sad.

If he was smart, he'd trade or <cough> sell some of them, put the money in a retirement account, and then have some real money to be able to travel 15-20 years from now.

Frequent flyer, hotel and other loyalty points are not gaining more value over time. Quite the opposite.

i don't agree with his method but to each his own....

i end up using points for my vacations every year....i see no point in saving them all up....i have a 200k balance for a rainy day but i don't care if i spend the rest....

Yeah. When I was in college, a friend and I went to MCO on US for spring break. We got bumped in both directions. Big score! Problem for me was that US really didn't fly to where my parents lived, so they were hard to use. They went unused.

For some of us, we earn miles whenever we can but end up with small numbers of miles in airlines (non-alliance) we never need to fly again so we let them expire. For example, if I were to fly EK, I might sign up for an EK account, in case I need to fly EK again. But if it turns out I do not need to fly EK again, those miles with expire.

Yeah, ajnaro, the point’s quite valid, as there is a miles difference because of passing 15-18 years.

Yes,unfortunately you read a story every once in a while in the paper about this happening to some guy.

lets hope this doesn't happen to my friend....i keep telling his to use up some of his points....

Your friend's heir(s) should know how to access his accounts. I keep all of my FF accounts, login IDs and passwords in a notebook, and my wife knows where it is. She knows how to book awards out of my accounts, and if she gets stuck, my brother-in-law can help - he's done it with my Southwest, Wyndham, and DL accounts.

he is a single guy....don't think his parents or sister would have the passwords to his accounts....

my wife knows all my passwords & i've also created a file on her computer in case she forgets....

When I lived in a community with low cost carriers, I would get the credits and donate them. However, I used them very infrequently. It is an easy act of charity and a shame others don't do it more often. Now I I live in a location with only legacy carriers and keep all 3 alliances active. More difficult with some hotel programs but some like Priority Club never expire.

I'd volunteer to keep your friends account number and passwords in case he is incapacitated, or Alzheimery. ;)

you will have to get in line behind me....:D