Reason for Breakage
Oct 12, 2010 | 5:25 pm
#16
Join Date: Nov 2001
Location: DFW
Posts: 1,387
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.
Oct 13, 2010 | 7:49 pm
#17
Join Date: Jun 1999
Location: Rio de Janeiro, BRAZIL
Programs: AA 4MM EXP; Starwood Lifetime Plt
Posts: 2,498
how would you define 'unused'????
there are some points that go unused because the member's account expires....then there are those like my friend who has been collecting spg points for almost 10 years now & has never used a single point....his balance is in the many millions....he says he wants to use all these points after he retires....given that he is still 15-18 years from retirement, he could end up with one of the largest balance of points out of anyone in the spg program....& he would not have used a single point....
there are some points that go unused because the member's account expires....then there are those like my friend who has been collecting spg points for almost 10 years now & has never used a single point....his balance is in the many millions....he says he wants to use all these points after he retires....given that he is still 15-18 years from retirement, he could end up with one of the largest balance of points out of anyone in the spg program....& he would not have used a single point....
Oct 14, 2010 | 1:05 am
#18
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Location: India
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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....
Oct 14, 2010 | 1:13 am
#19
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Join Date: Sep 2003
Location: HH Diamond, Marriott, IHG, Hyatt something
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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....
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....
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.
Oct 14, 2010 | 1:20 am
#20
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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.
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 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....
Oct 14, 2010 | 9:31 am
#21
Join Date: Jun 2001
Location: IAD
Programs: Chase Million Miler, SPG Gold, HHonors Gold, Hyatt Platinum
Posts: 2,729
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.
Oct 14, 2010 | 9:36 am
#22
Join Date: Apr 2002
Location: MHT/BOS <--> World
Programs: AA Plat 2.8MM
Posts: 4,629
Hi Community,
I'd doing a project on loyalty points and breakage but I'm finding it really difficult to get any details on the reasons for breakage and the holders of the miles/points breaking. Are these people who have only very small holdings of airmiles etc or are there other reasons for the breakage, eg too busy to redeem the airmiles/points?
I'd really appreciate any advice you can give or if you could point me in the right direction.
Thanks so much!
I'd doing a project on loyalty points and breakage but I'm finding it really difficult to get any details on the reasons for breakage and the holders of the miles/points breaking. Are these people who have only very small holdings of airmiles etc or are there other reasons for the breakage, eg too busy to redeem the airmiles/points?
I'd really appreciate any advice you can give or if you could point me in the right direction.
Thanks so much!
Oct 16, 2010 | 6:19 pm
#24
Join Date: Nov 2009
Posts: 121
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.
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.
Oct 17, 2010 | 2:24 am
#25
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Oct 17, 2010 | 8:31 am
#26
Join Date: Nov 2001
Location: DFW
Posts: 1,387
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.
Oct 17, 2010 | 11:42 am
#27
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Join Date: Apr 2009
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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.
my wife knows all my passwords & i've also created a file on her computer in case she forgets....
Oct 17, 2010 | 11:54 am
#28
Join Date: Dec 2006
Location: BTR, MSY
Programs: DL, BA, AA, UA, HHonors, PC
Posts: 200
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.
Oct 17, 2010 | 3:52 pm
#29
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Join Date: Sep 2003
Location: HH Diamond, Marriott, IHG, Hyatt something
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Oct 18, 2010 | 4:23 am
#30
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Join Date: Apr 2009
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