Frequent Flyer Viruses
 

[I thought you moight be interested in this latest article from my "Meme Update" newsletter.--Richard]

Frequent Flyer Programs

If you want to see an example of a designer virus that was created for a simple purpose and got WAY out of control, take a look at frequent flyer programs. It all started 20 years ago.

If you were going to fly in the US 20 years ago, there were lots of factors you might take into consideration when deciding which airline to fly, but basically it was all under the control of a government agency, the Civil Aeronautics Board (CAB). Airlines had a nice deal back then: they were pretty much guaranteed profitability. If you wanted to fly from Seattle to New York, you just picked an airline that flew that route, made a reservation, and got on the plane. Prices were largely determined by the CAB, and generally made some sort of sense based on the distance involved.

Then came the airline deregulation of the late 70s. The CAB was eliminated, and where airlines could fly (and what they could charge) was more or less up to them. With deregulation, not only could competitors start eating into the most profitable routes, but now just about anybody could start an airline! Something had to be done to ensure that airlines kept their profitable business customers and gave them a reason to fly one airline over another.

What happened at American Airlines in 1981 is a legend in the information technology industry. The CEO of American Airlines, Bob Crandall, was talking to the guy who headed up the Information Technology department, Max Hopper. It was a typical lunchroom conversation. "How do we get people to fly on us given that we no longer have this built-in profitability?" Hopper had been thinking about a way. The idea was that if you flew a certain number of flights on AA, you'd get a free flight. Because this was designed to give them an advantage, they called it AAdvantage. Now no great technology was needed to perform this feat. If you remember back in those days, it was all done with little pieces of paper that you turned in with your ticket.

Needless to say, AAdvantage was a huge success. Everybody was talking about it. So United, in about six weeks, responded with Mileage Plus. It was a similar plan, but with a variation based on the length of the trip: if you flew a certain number of miles, you got a free ticket. By 1983, it had started to steamroll. The award schedule went on for pages. They really didn't know what they were doing. They were in a hurry and didn't put a lot of thought into it. But accidentally, they put in a lot of good memes.

First of all, they set up the idea of a CHALLENGE. People -- especially the type of people who fly a lot, high-level businessmen -- love a challenge. "Hey, I've flown 100,000 miles." "I've flown 200,000!" Just mailing people the statistics set up the framework for a competition. But that was only the beginning. The thing that really took off was the idea that for cashing a certain amount of miles -- 10,000 in the beginning -- you could upgrade to first class. I don't think they really thought that upgrades would be such a big draw, but they started to appeal to the idea of ELITENESS. Coach became more and more of a cattle car and upgrades gave people a way of getting OUT of coach.

I don't know who came up with it first, but the idea of LEVELS in frequent-flyer programs really appeals to people who have grown up in the Boy Scouts, the Army, or corporate ladders. What do you get when you climb the ladder? It doesn't really matter. United's 100K-mile level (they call it "1K" for unknown reasons) hardly gives you any benefits over their 50K level, but want it we do (even me!) As we know from Virus of the Mind, people love to climb in a status hierarchy. Napoleon said, "A man will gladly give his life for a shred of cloth and a scrap of metal." How surprised should we be, then, to find we're willing to connect in Denver in December for the prospect of a gold-colored plastic card and the lofty title of "Premier Executive," "Platinum Medallion" or "Chairman's Preferred"? It's the modern equivalent of the aristocracy!

As the virus mutated out of control, it became a much bigger part of airline operations than anyone had ever imagined. One thing the airlines weren't expecting is accruing a whole lot of liability in the form of unredeemed miles on people's accounts. Enter expiring miles. They pissed off a lot of their most loyal customers, and now we're back to non-expiring miles, especially for the best customers. And you know what? A lot of those people are never going to redeem their miles. They're just in it for the memes.

The people who invented it, at American, now wish it would all go away. Flights to Hawaii are a third full of unpaying customers. Millions are spent on collateral material. But they are now a slave to the virus they created. If American stopped offering AAdvantage tomorrow, a million of their best customers would flee to competitors in a heartbeat. Even Southwest has to have it! Now when best friends travel together, they argue over which airline to fly! And through these programs the airlines have also created a feeling of entitlement. As a Gold member, I like to be treated like gold. There's nowhere to go but down. In the beginning it was American AAdvantage. Now it's BreAAk Even.

I have been a member of United Airlines Mileage Plus for 17 years. I correspond with other frequent fliers on the FlyerTalk bulletin board and listen to stories of the lengths people go to feed their mileage addiction. (One bulletin board contributor even goes by the handle "Mileage Addict.") It is not at all uncommon for people to make extra connections, fly from Seattle to London via Washington, D.C., or even take an around-the-world trip in order to retain their status at the top of the elite ladder. In most of the programs, it takes 100,000 actual flight miles per calendar year to achieve top status. But when you get there, are the rewards commensurate with the effort expended and loyalty shown? Or is there only fools gold at the end of the rainbow?

A little of both. United, the world's biggest airline, has a few perks reserved for their 100K flyers: special service desks in some airports to handle canceled flights and missed connections; waiver of that annoying $75 change fee in some cases for domestic flights; and the most important benefit, first priority on upgrades from the ever-more-sardine-can-like coach cabin into the tolerable front of the plane. But, really, it's nothing that money can't buy, and you have to begin to wonder how much of a chunk of your life you want to devote to bending over backwards to achieve the highest levels of these programs. Would you fly 8 hours out of your way for $200? Would you do it for 10,000 frequent flyer miles? What is your time worth to you?

The FF programs are one of a class of cultural institutions that have evolved to give us the illusion of power, status, and security. These are experiences we all crave to one degree or another, because in evolutionary history craving these things led to an improved chance of survival and reproduction. There is nothing wrong with enjoying these feelings. What is productive, though, is to ask yourself if this is the most valuable way to enjoy those feelings. In other words, can you imagine putting the time, money and energy into some other endeavor that not only gives you a sense of power, status, and security, but also puts you on the path to creating something of lasting value?

Frequent flyer links:
The WebFlyer from Inside Flyer Magazine: http://www.webflyer.com
FlyerTalk Bulletin Board: http://www.flyertalk.com/forumcgi/Ultimate.cgi
The Airline Mileage Workshop: http://www.mileageworkshop.com

All the best memes,

Richard

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Hey Mileage Addict - you're famous!

Some good philosophical points, but maybe also a case of sour grapes.

Some notable omissions for 1K perks: the extra one way confirmed upgrade certificates, complimentary upgrades on Shuttle flights, and the 1K lounges in the hubs. I miss them all.

Would I take an extra weekend getaway, expending time and money to get to 1K - YES. Would I be obsessed about making it to 1K - NO.

Sour grapes is right! I'm not sure there are too many people on these boards (if any) who will travel 8 hours out of their way for $200 or 10,000 miles. But leaving out of IAD for double miles as opposed to DCA (about 1/2 hour extra for me) is well worth it. And I certainly wouldn't spend thousands of dollars to make an elite level, but if it takes a weekend trip on a E-fare of $79, again, it's worth it. Ditto for applying for credit cards I really don't need but that come with huge bonus mile offers.

My time is worth something (a lot actually), but so is free travel. It continues to amaze me that there are a number of people (perhaps Mr. Brodie included) who say they can't be bothered with collecting and tracking miles/points and then whine profusely when others are taking free trips. Too bad I say, it's your loss!

I think we know each other Richard from this board - and if my memory is correct you are quite happy to get some valuable informations on "how to make it" and @how to get upgraded yourself on planes and hotels.

But thank you for letting us read your article anyway.

[This message has been edited by Rudi (edited 05-29-99).]

Indeed. Companies want more money. They attract money their way by getting people to be loyal by giving rewards. Many take advantage of those rewards and give money back to the company. Not everyone can or is willing to take advantage of those rewards. But why should that be license for those people you cannot or will not to be sour about it? This is a capitalist country (which to some, capitalism may be a virus)...but if you don't like it, hey, there's always China.

May the mime be with you.

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g'day
wl

AN OMNI RESPONSE...

Richard, I would NOT consider Frequent Flyer programs like a Virus. We are NOT addicted to getting the most miles... we have something called LIVES.. and the traveling is just one part of this.

MileKing is right... I can't imagine many people flying many miles out of the way just to get a few miles.

I'd like to ask you Richard:

*How OFTEN do you fly?
*Where do you fly (Seattle-Portland) or around the nation or the world?
*How many Frequent Flyer programs (if any) do you belong to, and are you elite with any of them?

And your closing remarks struck me...

You write: "can you imagine putting the time, money and energy into some other endeavor that not only gives you a sense of power, status, and security, but also puts you on the path to creating something of lasting value?"

Well, the frequent flyer travel allows me to earn miles for upgrades (OK call me pretentious) and allows me to get away every once in awhile from my "real" world.

It allows me to travel more. The travel improves my mental health, helps me meet new people, expand my mind.

Ok it's not as tanagable as finding a cure for a serious disease and it's self natured but Travel gives me something of lasting value: a complete, good and happy life.

Don't take my remarks the wrong way. I appreciate you speaking out. Just expressing one individual opinion!




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MEOW! MEOW! MEOW!!!

arturo themk thes knot ownly sower gripes, butt a viry bad comershal fer R.B. Rishard B. kneed sum publisity an he use thes board to git et. he post massage bout frecwent fliers an evrywon hear reed et kaus thet wat we lik. butt arturo knotise thet RB refer two weeb sites an hes buuk.

arturo knot kno bout other peepl hear, butt arturo sea threw RB lik he saran rap. RB thes knot comershal board. yur storie fine bout gras hopper an recherd krendell, but arturo knot lik yur comershal an yur ettitude. guud theng yu werk fore yurselph an knot arturo, caus arturo fire yu.

elso, caus of mils an evrytheng, randy now hav beeg megasine an knice jusy job, an other peepl hav dunn same theng. ef knot fer mils, randi stell bee renting rafts on beech.

Arturo, I must confess that you are a pretty juicy guy. You make me laugh. You make me want to leave PremEx for you. Why don't you check out his itinerary and come see me when he's out of town? In fact, if you decide to go to the PiP, I'll quit my job and PremEx, and we'll have our own "party" in paradise! You're mucho sauvee in my buuk.

That was the most intelligent post you have put on her Arturo (although the spelling and grammar and punctuation leave something to be desired.) But you are a cat so I still love you YAZ! http://talk.flyertalk.com/forum/smile.gif
---------------------------------------------
See, even my cat Yaz (AKA Arturo) was bothered by that Richard post.

OMNI: Welcome to the boards Wingless and I hope things change and you can join all of us in the Party In paradise. Hope to meet you soon. PremEx is a lucky guy and a great buddy of the Cats!


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MEOW! MEOW! MEOW!!!




[This message has been edited by Catman (edited 05-28-99).]

Although the article offers some interesting thoughts, the airlines do not want the programs to go away. Airlines selling of their miles, most notably to credit card companies is a very profitable business for them.

>>FF programs are one of a class of cultural institutions that have evolved to give us the illusion of power, status, and security. These are experiences we all crave to one degree or another, because in evolutionary history craving these things led to an improved chance of survival and reproduction. There is nothing wrong with enjoying these feelings. What is productive, though, is to ask yourself if this is the most valuable way to enjoy those feelings. In other words, can you imagine putting the time, money and energy into some other endeavor that not only gives you a sense of power, status, and security, but also puts you on the path to creating something of lasting value?

Balderdash. FF programs provide real benefits. 2 examples:

1. My platinum elite status on CO allows me to upgrade for free on nearly every flight I take. Sitting in first makes flying a heck of a lot more comfortable - makes the experience pleasurable instead of being an ordeal.

2. For the greater part of last year, I carried on a long distance relationship. We were able to get together nearly every other week, despite a distance of 1500 miles between us, thanks to free tickets earned on FF programs.

The gist of RB's article seems to be that the primary benefit of FF programs is status and power (and that the status and power are illusory). He ignores the fact that there are real benefits to be derived by frequent flyers from intelligent participation in the programs.

Deconstructing the meaning behind FF programs is a relatively simple thing to do. I'm sure we have all seen several similar articles in the mass media over the past few years (Wallpaper* two months ago comes to mind).

The collection of FF miles and status has parallels with the joy/frustration we experience in shopping the retail sales - a modern day manifestation of the hunter gatherer instinct. Does this awareness mean I am likely to stop collecting miles? Probably not. The responses posted thus far show that most people, on this board at least, participate in the programs with their eyes wide open and have fairly pragmatic reasons for their "obsession". In my own case I've been able to provide free travel and upgrades for myself, my family and friends.

I enjoy the intellectual discourse but I object to the judgmental overtones contained in statements like "... can you imagine putting the time, money and energy into some other endeavor that not only gives you a sense of power, status, and security, but also puts you on the path to creating something of lasting value?". What objective yardstick does Richard Brodie possess that can measure value? Of course, the only yardstick we can use is our own.

I use my miles to visit my only grandkids in Alaska. Will spend 6 wonder packed weeks there this summer thanks to miles. I hope at the end of it I can say it will have lasting value.

Well said (I think) Arturo!

Wingless -- welcome to the board tho methinks Mr. Love had tremendous editorial input with your first posting!

http://talk.flyertalk.com/forum/wink.gif http://talk.flyertalk.com/forum/wink.gif

Shoot, all these years I just thought collecting miles was FUN!

Seriously I agree with MGM, I alway enjoy listening to a new academic point of view. Then I reflect, make some adjustments if warranted, and then blissfully go on doing whatever makes me happy.

Having enough miles to take my whole family to Europe when I want, or to travel around the country whenever we feel like it, makes me very happy. I assure you, Richard, the good experiences and memories I have accumulated travelling with my family are among the most precious and lasting treasures I possess.

I think this post has actually been wonderful for me as it made me start thinking how much more lasting those memories will be if I make a better effort as completing my trip journals. I just had a vision of my great-granchildren re-enjoying our visit to the Alhambra. I'll make a little labels for the journals that read, "Memories Courtesy of FF miles."

p.s. Hey, CATMAN Don't knock Seattle/Portland trips. I get 4,100 miles per trip. Just from my SEA/PDX trips, alone, I get enough mileage for two business class tickets to Europe each year. I'm not complaining.



[This message has been edited by Punki (edited 05-29-99).]

Doh! I leave her alone for 5 minutes and she's having a cyber-affair with...Arturo?!. That's it. Goodbye cruel world. And Onefreeman...nope. Arturo's posts are the only ones she ever wants me to read to her. I should have suspected.

I am NOT knocking SEA/PDX or any short haul trips. I was only trying to make the point that I think the person who initiated this post has made few flights per year and probably is NOT in a frequent Flyer Program.

The short hauls help ALL OF US get over the top.

And Punki, you just proved me point about all this travel having lasting value. We can use the miles to see the people we LOVE!




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MEOW! MEOW! MEOW!!!

arturo epresheight yur komints lesswing, butt arturo marred two consuelo, an consuelo knot lik et ef arturo cheet on consuelo. en fack, consuelo bruse arturo bad ef he git kaut. lesswing, prematur-ex beter be guud two yu or arturo mite jus tak yu up on yur ofer durin pip. ef yu knot go two pip, mebe arturo knot go to pip ether. consuelo knot goin to pip, sew consuelo knot kno wher arturo es. mebe arturo jus stey en kalephornea an sea yu whil prematur-ex gon.

ef yu goin to pip, thin yu mite git to sea arturo. arturo wood emale yu en priveight, butt yu hyde yur emale adress, sew arturo knot abl to doo et threw ciberspac.

At the risk of adding yet another justification to the value of FF programs debate I thought I would share the experience I had today.

I received a phone call this afternoon that my mother was rushed to hospital and has to undergo major surgery on Tuesday. Unfortunately, I am currently in Singapore and she is in Australia. Before I even thought about trying to buy a ticket on a Sunday I called AA's Executive Platinum desk, explained the situation and asked if they could issue an award ticket on Qantas. Ten to fifteen minutes later they had me confirmed on outgoing and return flights, sent a message to the local ticketing office to give my booking priority and waived the $75 rush fee. Without this, I would be waiting anxiously until the morning when I could speak with a travel agent and try to secure a paid ticket.

While the dollar value of the ticket can easily be quantified, I can't put a price on the value this means to both my mother and myself. I don't think this situation could have been handled so well were it not for a combination of elite status with AA and a sympathetic customer service rep. This is definitely not "fools gold at the end of the rainbow" as far as I am concerned. Of course I am more than happy to give back to AA in return, by continued loyalty and promotion by sharing the positive experiences I have had with them.


[This message has been edited by mgm (edited 05-30-99).]

I couldn't agree more mgm.

There have been several times when I have had to make emergency bookings that would have been prohibitively expensive that allowed me to get to where I needed to go immediately. With no capacity controls as an AC SuperElite, it means if there is an open seat of any sort, I can access it and at no charge for instant booking. I just a made a reward booking today for a day trip Tuesday that would have cost me a $1000 normally--remote northern location, no competition.

Status for frequent travellers is more than illusory power--it is worth more than its weight in gold or platinum or emeralds or whatever http://talk.flyertalk.com/forum/wink.gif

The original post on this thread was only two days ago, but it's drawn what I think is a fantastic outpouring of responses, not much of it favorable. What I find notable, though, is that the original writer hasn't responded to any of the criticism. I really hope it hasn't turned you off, RB. We're not putting you down, we're just disagreeing with you. And that's one of the big plusses of a forum like this one.
Of course, Arturo went a bit overboard, I think, in his criticism of the commercialism (it was sort of tacky, but probably not worthy of an attack as strong as Arturo's). You have to realize, however, that Arturo seldom posts more than two lines; so his long expressions on this subject have probably been something of a strain.

Thanks for the invitation to respond. This is obviously a subject near and dear to everybody's heart here. We all want to make the most of our flying dollars and get the best treatment we can. I think most of us love the perks and special privileges that come with elite levels too.

pgupta011: Thanks for the comments about the UA 100K level. I actually am not talking through my hat on this -- I am a "1K". Since most other airlines give their top elites unlimited domestic upgrades, I still think the extra confirmable upgrades are nice, but not a significant benefit. The 1K lounges, without any food or drink or even coffee, are not terribly useful unless there is a flight cancellation of some kind, and in that case I have always been successful simply calling United on the phone.

Catman: I fly a couple times a month on average, all over the world. I am elite with United and Alaska. I feel bad that some people seemed to think I was talking about them when I talked about fools gold -- obviously if you're conscious about what you're doing and you love to travel and you don't blindly pour time, money and energy into reaching the next level, you're doing great! That probably covers most people who contribute to this board, and the last thing I wanted to do was to insult anyone. I love you all!

Punki: I couldn't have hoped for a better result from my article. Thanks for your indulgence everybody.

All the best memes,

Richard

Richard Brodie: I was 1K, now I am PE. I really do not see it as climbing any kind of "ladder". The perks you mention as not of significance to you, are really significant to me - different people will have different priorities, but if someone is writing an article for general distribution, s/he should try to represent a broad spectrum of viewpoints, and not some condescending viewpoint about what people should or should not do with their time.

arturo, I'm impressed. Not only does wingless offer to leave PremEx for you, but you inspired her very first post on the board (and I know that she's been registered for months...)

double post

[This message has been edited by baobab (edited 05-31-99).]

RB, yu beter man en arturo's buuk. yu kom bak an post yur phealins an perpus an arturo unnerstan that. wat arturo rite abov es hes openyon. arturo kno yu hav openyon an respeck et. thet es wat nise bout thes bored, yu kan post yur openyon an ketch wholly hell-o bout et, butt evrywon respeck yur openyon, mebe knot arturo's, butt yurs respecked. arturo luv yu two.

arturo trevel soo much thet he knot kere enymour bout 1k, or y2k, or platenum, or prematur-executed, arturo jus wan two bee en furst klas wiff beeg wid seet so arturo kan siesta.

themk yu bay-o-bab fore yur post. arturo knot elways enspir peepl, butt ef he enspir lesswing thin arturo hapy. mebe lesswing sind arturo emale, or post egan hear. arturo hop prematur-ex knot sea thes an bee mad, an arturo expeshelly hop consuelo knot sea thes.

Richard,

Take a look at "Dream Trips! Why are we saving miles?"

56 posts to date and not a single one of them mentioned flying to gain power, status or security. Guess we Flyer Talkers just don't fit the mold.

Punki, there is NO doubt in my mind that FlyerTalkers don't fit the mold!

ppgupta11, I know I and everyone else appreciates your adding balance to my opinion piece. Thanks.

Sometimes it's interesting to consider if we have unconscious motivations that conflict with what we consciously strive for, and that is mostly what my work is about. Thanks everyone for your feedback.

All the best memes,

Richard

PB: Now: Will you write another opinion piece that expresses the sentiments you stated in your last post?

http://talk.flyertalk.com/forum/wink.gif

I travel because I'm required to for my job. It means anywhere from 3 to 8 days away from my wife and kids.

I am seeking Elite status so I can travel more comfortably.

I am collecting miles so that there is a reward for my family to make up for the fact that Daddy can't be home every night for dinner.

I'd be willing to bet that a vast majority of frequent fliers fit my profile vs. the article's zealots/villians.

As far as the companies go, they don't need to "wish it goes away". If they were truly losing money on their programs, they'd cancel it in a heartbeat. Instead, they brag about how their program is better than others, presumably to entice more people to join. Why on earth would you want more people to join in an effort to lose money?

Customer satisfaction is not high on their priority list - look at what passes for a "meal" on most carriers. They realize that people love "something for nothing" deals. A friend of mine was shocked to discover that it would take her 8 round-trips to Florida before she'd qualify for a free ticket. Of course, she only discovered this after receiving her first statement!
Ka-ching!

I wonder how others feel about this comment.

Personally, I have experienced many instances of airline personnel going out of their way to keep me satisfied.

Switching my business to a primary carrier that is more customer focused greatly increased my level of satisfaction with business travel.

Not all airlines have the same philosophies towards customer satisfaction, and not all airlines execute equally well in this area.

As far as the importance of customer service, it isn't always consistent within one airline but often times, depends on individuals and their own attitudes about customer service. I have come across individual representatives of airlines, car rental companies & hotels and service has run the gambit of really superior to "you're lucky I give you the time of day, let alone service". In general, I've been fortunate with service from the companies that have won my loyalty & have stopped using companies that were dreadful.

To sum up, even though it may seem like the travel industry as a whole sometimes doesn't seem to give a gosh-darn-dang http://talk.flyertalk.com/forum/wink.gif about us, I can't honestly generalize that all people in the industry don't. Just my $0.02.

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Regards,
- Anna

It's interesting to compare the discussion here with the thread on rating FT members, in the Randy Petersen Only forum. Seems Richard may be closer to the mark than originally appeared.

Regards,

Ken Hamer
(I'll be heading for cover now. http://talk.flyertalk.com/forum/wink.gif )

That's twice in a year that you've gotten me to http://talk.flyertalk.com/forum/smile.gif, Arturo.

Just goes to show that a thousand arturos each making a thousand posts really CAN come up with a gem or two...

Its too much of a headche trying to read Arturo's posts and I've given up. Someday I will post a request for a filter in the FlyerTalk suggestions (similar to Usenet newsgroup readers where one can specify which posters one wants to bypass completely).

[This message has been edited by pgupta011 (edited 06-07-1999).]

Beckles reminded me about this thread in New Orleans, and I forgot that I had meant to throw in my worthless opinion:

I do indeed find miles to be a guilty pleasure. Just like an ice cream sunday or that third martini, I know I shouldn't be enjoying earning miles this much.

But then I travel with my wife or a non-frequent flying colleague, and I remember why I do it and why it feels so good. The lounges, the upgrades, the free travel, the special check-in and other treatment make United feel a little more like home to me. I feel more appreciated than the average traveller, and for one who spends as much time away from my real home as I do, the value of such a feeling cannot be overstated.

Do I go out of my way to collect miles and stauts? Of course. Doesn't everyone want to maximize thier investment (of time, money, whatever)?

Does the time I spend doing it justify the gains? Sure. Even if that just means concentrating my travel to specific airlines and hotels (wouldn't call that being "going crazy for miles", would you?) I gain an amazing array of benefits that someone who spreads their loyalty around would not get. Is this a slippery slope? Sure! You can go from concentrating your travel to taking extra layovers to taking non-work or vacation related overnight flights in a heartbeat. Then again, maybe some people enjoy the journey even more than the destination (hey, that sounds like a cool airline ad slogan).

So, from my perspective, and from the perspective of the airlines, I think the programs work. Are they addictive? Yeah, but no more so than any other work-related hobby (eg, the race car driver who collects cars; the postal clerk who collects stamps).

Anyway, that's my rambling on the topic. Thanks, Dick, for challenging our thesis with your antithesis. I for one, have gained a refined synthesis from the process.

arturo sea yu use werd wif thesis on bac of et. es amniosyntesis lik eny of thes werds?