Cheaper award redemption costs for elites?
Jan 3, 2012 | 3:03 pm
#1
Original Poster
Join Date: May 2011
Location: SFO
Posts: 252
Cheaper award redemption costs for elites?
Hey guys
A thought occurred to me with all these >50k mile credit card bonuses floating around that redeemable miles earned through flying should be worth more than those earned through credit card promos. The glut of CC RDMs is inflating BIS RDMs and potentially pissing off some elites (I remember reading about BA elites in the UK who was unhappy that Americans were able to get access to 100k BA miles without setting foot on a plane). A possible solution is to give elites access to lower pricing on award tickets. This would definitely create more loyalty and a greater incentive to fly. Is there a reason why this hasn't been implemented?
A thought occurred to me with all these >50k mile credit card bonuses floating around that redeemable miles earned through flying should be worth more than those earned through credit card promos. The glut of CC RDMs is inflating BIS RDMs and potentially pissing off some elites (I remember reading about BA elites in the UK who was unhappy that Americans were able to get access to 100k BA miles without setting foot on a plane). A possible solution is to give elites access to lower pricing on award tickets. This would definitely create more loyalty and a greater incentive to fly. Is there a reason why this hasn't been implemented?
Jan 3, 2012 | 3:40 pm
#2
Join Date: Jul 2009
Location: DFW
Programs: AS, BA, AA
Posts: 3,670
No reason to implement that unless BA elites are angry enough to leave BA.
Several FF programs (in the US, at least) have 'cheaper' elite rewards in the form of expanded availability. For example, on CO or AA, when I sign in to my account, I can see more 'saver' awards than when I am not signed in.
Several FF programs (in the US, at least) have 'cheaper' elite rewards in the form of expanded availability. For example, on CO or AA, when I sign in to my account, I can see more 'saver' awards than when I am not signed in.
Jan 3, 2012 | 6:41 pm
#3
Join Date: Jul 2011
Location: NYC
Posts: 511
Why?
The whole point is that you earn elite status by flying. That's the perk.
Redeemable miles are separated for a reason.
The airlines created that "glut of CC RDMs" that inflates RDM because selling miles makes money. It is not that the card issuers printed false RDM; they had to buy them from the airline at some point.
We always hear about inflation and devaluation of programs. Well maybe this new benchmark of 50k signup bonus is helping the consumer keep up with exactly those issues.
If you are an elite it is because you already fly with them a lot. They definitely value your patronage and reward you with elite status. However giving out CC RDM attracts potential flyers who may have went somewhere else but are now willing to book flights with the airline that is co-branded on their CC. Those costumers are rewarded with the CC signup bonus.
It is what it is and I wouldn't want it any other way.
Disclosure: I am not elite but I got my gf PLAT with AA.
The whole point is that you earn elite status by flying. That's the perk.
Redeemable miles are separated for a reason.
The airlines created that "glut of CC RDMs" that inflates RDM because selling miles makes money. It is not that the card issuers printed false RDM; they had to buy them from the airline at some point.
We always hear about inflation and devaluation of programs. Well maybe this new benchmark of 50k signup bonus is helping the consumer keep up with exactly those issues.
If you are an elite it is because you already fly with them a lot. They definitely value your patronage and reward you with elite status. However giving out CC RDM attracts potential flyers who may have went somewhere else but are now willing to book flights with the airline that is co-branded on their CC. Those costumers are rewarded with the CC signup bonus.
It is what it is and I wouldn't want it any other way.
Disclosure: I am not elite but I got my gf PLAT with AA.