On the economics of Mileage runs - or why airline should sell qualification miles
#46
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Previous discussions of precisely the same topic:
http://www.flyertalk.com/forum/miles...get-miles.html
http://www.flyertalk.com/forum/miles...ke-status.html
http://www.flyertalk.com/forum/miles...get-miles.html
http://www.flyertalk.com/forum/miles...ke-status.html
#47
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Join Date: Nov 2010
Posts: 639
Previous discussions of precisely the same topic:
http://www.flyertalk.com/forum/miles...get-miles.html
http://www.flyertalk.com/forum/miles...ke-status.html
http://www.flyertalk.com/forum/miles...get-miles.html
http://www.flyertalk.com/forum/miles...ke-status.html
That's why most airlines have promotions that help you get there (e.g. Delta amex - delta donations, specials to requalify, bonus qualification miles, etc..) or very high costs. Some people who are either savvy enough to take advantage of promotions/MRs get status with little flying. The (few) others who are willing to pay enough get it through buying. But both do so without too much impact on the value perceived by those who more or less earned it. The airline might get less money for qualification miles this way than they would if they had simpler cheaper options, but the overall benefit might be better.
#48
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I would not pay for qualifying miles directly - it likely would not be offered at a price I could justify.
MRs at the right price I can justify.
Not only are the status benefits worth money (AA evips, DL choice rewards, upgrades, lounge access, etc) but the RDMs alone can be worth it.
My DL BNA-SFO trips this weekend are yielding RDMs at $.01/mile. Even considering the difficulty of SkyPeso redemptions one can extract far more than $.01/mile in practical value even using standard intl economy tickets. I will likely use my RDM for RTW trips in Business yielding far more. It's easy to redeem AA miles for greater than $.02/RDM.
I've cleared $1,000 in VDB vouchers doing MRs this year which is roughly 12% back on my MR investment. I've also enjoyed many days on the road enjoying free food and drink that I didn't have to pay for. Since I live in a hotel at home, doing a multi-day MR actually saves me lodging costs.
As for the cost of time this entirely depends on one's profession. I suspect few people have a job where they can earn money for extra hours invested whenever they please. Personally I already work the maximum hours possible (standard + overtime) so the hours I invest for MRs are literally otherwise worth zero to me, since I'd just be doing nothing useful at home otherwise.
I find MRs to be fun and relaxing in addition to the benefits I yield.
MRs at the right price I can justify.
Not only are the status benefits worth money (AA evips, DL choice rewards, upgrades, lounge access, etc) but the RDMs alone can be worth it.
My DL BNA-SFO trips this weekend are yielding RDMs at $.01/mile. Even considering the difficulty of SkyPeso redemptions one can extract far more than $.01/mile in practical value even using standard intl economy tickets. I will likely use my RDM for RTW trips in Business yielding far more. It's easy to redeem AA miles for greater than $.02/RDM.
I've cleared $1,000 in VDB vouchers doing MRs this year which is roughly 12% back on my MR investment. I've also enjoyed many days on the road enjoying free food and drink that I didn't have to pay for. Since I live in a hotel at home, doing a multi-day MR actually saves me lodging costs.
As for the cost of time this entirely depends on one's profession. I suspect few people have a job where they can earn money for extra hours invested whenever they please. Personally I already work the maximum hours possible (standard + overtime) so the hours I invest for MRs are literally otherwise worth zero to me, since I'd just be doing nothing useful at home otherwise.
I find MRs to be fun and relaxing in addition to the benefits I yield.
#49
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From The Incredibles
Mom: Everyone is special, Dash.
Dash: That's the same as saying no one is special.
#50
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Join Date: Nov 2010
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Personally, if I could justify the price of buying elite miles outright then I suspect a whole lot of other people could as well. And if everyone is elite then no one is elite.
From The Incredibles
Mom: Everyone is special, Dash.
Dash: That's the same as saying no one is special.
From The Incredibles
Mom: Everyone is special, Dash.
Dash: That's the same as saying no one is special.
#51
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Join Date: Nov 2010
Posts: 639
And like I've said, if you ENJOY the mileage run - go for it - I have no problems (personal, economic, or otherwise). But for those of us for whom time is valuable (whether because we spend it with our families, work extra, have side jobs, friends, or other things that aren't done in airports and in the the air) doing the actual flying or a MR is a waste/hassle, and does no service to the airline.
#52
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Ahh, but everyone can't justify the purchase. And I venture to guess that most regular business travelers and a few regular leisure travelers have status. And few who don't fall into one of those categories would pay for it. Besides, if people buy status who don't fly often,than among the flyers, there is little change in who has status.
[not pickin' on FOs... I was FO for several years... last century ]
#53
Join Date: Aug 2009
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i think the op's point is valid but in this forum is likely to be the least receptive as this is a group of people who pride themselves on finding the best possible deals. so while yes time has real value, even if you can't earn x$ per hour to me there is a real cost to not being at work or with family or doing something else. but right now i am on a completely FREE MR thanks to the expedia.ca screw up and AA DBEQM promo. So I am getting around 8k AA EQM for zero (well actually $15 airport parking, and so far have racked up $6 spend in vegas - but I ain't expecting to see AA sell 8k EQM for $21 any time soon)
#54
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I don't do mileage runs anymore, but when I did, I loved the flying as much (if not more) than earning the EQMs. Plus I always did my best to have at least a few hours at my destination so I could get out of the airport and see where I ended up at, at least for a little bit.
I would never pay for EQMs in lieu of a mileage run unless it was an incredible deal I couldn't come close to matching. I'd rather pay a premium to fly then buy the EQMs outright.
I would never pay for EQMs in lieu of a mileage run unless it was an incredible deal I couldn't come close to matching. I'd rather pay a premium to fly then buy the EQMs outright.
#56
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It seems this topic comes up about once a year, usually at the END of the year as people start doing MR's to requal.
I'm not trying to say that this thread isn't useful, but a few of us can list out the arguments for why airlines don't do this. A search, if FT had one, would be beneficial. Then the question becomes, has anything changed this year? Probably not.
I'm not trying to say that this thread isn't useful, but a few of us can list out the arguments for why airlines don't do this. A search, if FT had one, would be beneficial. Then the question becomes, has anything changed this year? Probably not.
#57
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Join Date: Nov 2010
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It seems this topic comes up about once a year, usually at the END of the year as people start doing MR's to requal.
I'm not trying to say that this thread isn't useful, but a few of us can list out the arguments for why airlines don't do this. A search, if FT had one, would be beneficial. Then the question becomes, has anything changed this year? Probably not.
I'm not trying to say that this thread isn't useful, but a few of us can list out the arguments for why airlines don't do this. A search, if FT had one, would be beneficial. Then the question becomes, has anything changed this year? Probably not.
#58
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Some times mileage runs reap unexpected benefits. I just got bumped in the middle of a $200 Nashville mileage run, which brought me over the magical 1 million miles of UA flights, and got a $400 voucher. Have a 2 hour delay and then continue home. Not bad for an overnight trip, and got to catch up with another FTer (boxo) along the way.
#59
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Less time mainly. I did them when I was in college and had so much more free time (vacations, days without classes etc.) and fewer expenses. Now that I'm in the working world I'd rather use my vacation days and weekends for something a little more substantial then a shiny card. Plus I now have a car payment, car insurance payments, phone bill, etc. so discretionary income in my opinion should go for something important. And there's always that save up for the retirement thought in the back of my mind when I spend.
#60
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Less time mainly. I did them when I was in college and had so much more free time (vacations, days without classes etc.) and fewer expenses. Now that I'm in the working world I'd rather use my vacation days and weekends for something a little more substantial then a shiny card. Plus I now have a car payment, car insurance payments, phone bill, etc. so discretionary income in my opinion should go for something important. And there's always that save up for the retirement thought in the back of my mind when I spend.