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-   -   Chris Elliott: "Frequent flier programs are a scam" (https://www.flyertalk.com/forum/milesbuzz/1409188-chris-elliott-frequent-flier-programs-scam.html)

mnscout Nov 22, 2012 12:36 am


Originally Posted by AA_EXP09 (Post 19727666)
AA 77W F to deep South America is an example, or DFW-HNL flights.

Have they rolled out already? I mean 77W? I thought it was delayed.

toomanybooks Nov 22, 2012 8:00 am

Agreed, this guy is a clown.

So from now on when you read something, anything, in a major newspaper or business site, keep your skepticism high. This especially applies to economic topics. These "reporters" know less that we do on most subjects.

Cheapskate Travels Nov 22, 2012 10:08 am

Miles are scam? Really?

Since I got into this game in the 90s there's been the usual devaluations, increased restrictions and fees, etc., but one thing has changed that makes his entire argument bunk and that is that you can now get domestic one-ways for 12.5k on AA and UA.

In my experience both have pretty good availability and I use them when the economics make sense or I need a close-in flight. They shouldn't be hard to use for other noobs with basic internet skills, and for me that's like getting a one-way car rental for the same price as returning to the same location, it is an actual enhancement.

Getting 4 domestic one-ways for a credit card sign-up sure is a scam. :rolleyes:

LowFlyOver Nov 23, 2012 12:29 am

Zzzzzzzzzz
 
I save $5-6k annually on travel as a low level churner. If the programs weren't worth it, I'd just go for cash back, which used to add up to $1-2k or so annually. Seems like I'm coming out a little ahead....

AA_EXP09 Nov 23, 2012 8:27 am


Originally Posted by toomanybooks (Post 19729093)
Agreed, this guy is a clown.

So from now on when you read something, anything, in a major newspaper or business site, keep your skepticism high. This especially applies to economic topics. These "reporters" know less that we do on most subjects.

Reporting for publicity and being first vs publishing worthwhile content to read :rolleyes:

peachfront Nov 23, 2012 10:11 am

i like that post, andy
 
Andy, your clear and intelligent analysis says it much better than he did. Maybe YOU should be the bigtime blogger instead of Mr. Elliot. Phrased as you did, there is no doubt in my mind that you are pretty much 100% correct. I have experienced what you describe for myself, but apparently you and I are in a very small circle of Flyertalkers who are honest about the fact that marketing campaigns actually work to persuade people to spend more.

Another thing I've especially noticed is the large number of Flyertalkers who are no longer happy to get a seat in business or first class. Now they must chase suites in chain hotels. If they looked back on their past and their youth, they would be horrified at themselves. There is no real purpose to travel if you're going to stay in a chain hotel. Stay in a hostel, stay in an eco lodge, heck, stay in a cave or a tent. But once people get their heads eaten by miles and points, then all they think about is "free hotel rooms" and their world gets a little smaller even as they are traveling over a wider piece of the globe. It is a very easy trap to fall into. When we were young, we used to laugh at the masses going all the way to London or wherever to stay in a Best Western. Now too many of us have lost our way and become those masses.

I have found it useful to ask myself, why am I traveling? Just because it's free? Heck, I can stay home for free. There has to be something more out there, or I am letting somebody else (loyalty programs and marketing campaigns) decide how am I spending my time.

Scam is too strong of a word. The programs are not scamming people so much as they are letting people talk themselves into upselling themselves. Hey, I'll freely admit it worked on me. I'd done plenty of mileage runs to keep my upgrades. In my experience I am not saving money. However, I am using it to make more effective use of my money, so I can get two or three trips for the cost of one. If I just focus on "free, free, free" though, I get pulled off my own path and onto some marketer's path.


Originally Posted by Andy2 (Post 19726614)
The article author's premise is that everyone should run like crazy from mileage programs and that simply using cash (instead of chasing miles/points) leads to more rational economic decisions. He uses unsophisticated mileage program participants as an example, but his thinking probably has some applicability to all of us. Miles/points are mostly a marketing tool. The airlines get cash from selling miles to credit card companies and the like, and they allow the miles to be redeemed for seats that would otherwise go unfilled. The redeeming passengers, in order to feel good about the redemptions, simply increase their overall travel budgets (thereby negating any real cash savings or economic benefit). Overstock.com learned long ago that selling a lamp for $29.99 and claiming that the lamp retails elsewhere for $119.99 produces more satisfaction to the customer than if the customer finds the same lamp at Big Lots for $29.99 and Big Lots has always sold that lamp for $29.99. Redeeming miles for a first class trip to Athens Greece just feels better than buying a cash ticket to Athens, Georgia (USA), even though the overall cash vacation expenditures on the international vacation are a lot more than the USA vacation. My premise is that once someone accumulates a lot of miles, he will want to use those miles on vacations that are a lot more expensive than the vacations that he would take if he paid for everything (including the flights) in cash. He effectively spends more cash than he otherwise would in order to get the full "value" out of his miles. A person who has spent funds to acquire his miles is also more willing to incur fees such as international taxes when redeeming the miles. The amount he has spent acquiring the miles is a sunk cost and he is trapped into incurring more expenditures to salvage the full value of the miles, allowing the airlines to play Gotcha - Give Us Fees to Use Your Miles. So I am not entirely certain that the author may not be correct in his conclusion, even for more sophisticated accumulators of miles. How often does someone spend less on total travel costs than if mileage programs did not exist? The experiences of international travel may well be worth it, but the true cash economic value of the miles may not be as significant as many propose. Just my thoughts, feel free to drill me along with Chris.


DHAST Nov 23, 2012 1:55 pm


Originally Posted by peachfront (Post 19733657)
Another thing I've especially noticed is the large number of Flyertalkers who are no longer happy to get a seat in business or first class. Now they must chase suites in chain hotels.

True that. In the SPG forum, many Platinums will say that Tripadvisor reviews are garbage, and anybody who reads them is wasting their time. But you know how a platinum reviews a property? It all depends on whether or not he got his suite upgrade.


If they looked back on their past and their youth, they would be horrified at themselves. There is no real purpose to travel if you're going to stay in a chain hotel. Stay in a hostel, stay in an eco lodge, heck, stay in a cave or a tent.
I'll disagree with that. I've been to, I donno, 13 countries, having stayed in local hotels, hostels, and chain hotels. There's no real purpose to travel if you're going to actually stay in the room you've rented without leaving. While satisfactory, I can honestly tell you that the hostel I stayed at in BKK in 2007 did not define or enhance my trip. Staying at the Millenium Hilton in 2012 did not detract from my BKK experience -- in fact, I might argue that it enhanced it. Happy Hour on the rooftop patio with free booze was a delightful experience. What would you suggest I do for a similar experience? Should I head over to an over-rated tourist trap like Lebua and pay $15 USD per drink? I'm not so sure that the later provides a real authentic BKK experience, either.


I have found it useful to ask myself, why am I traveling? Just because it's free? Heck, I can stay home for free. There has to be something more out there, or I am letting somebody else (loyalty programs and marketing campaigns) decide how am I spending my time.
Joke's on you if you think traveling is free, even if you're using miles and points ;) My wife and I are traveling through Copenhagen, Amsterdam, Paris, Madrid, Barcelona, and Vienna later next year, for a total of 24 nights. All of my airfare and hotels are paid for, but it's still going to cost me real money. Probably around $5000 when it is all said and done. That ain't free.

Renes Points Nov 24, 2012 3:18 am

I agree with CE. I think "most" should cut up their FF cards!

TallestHotelInJapan Nov 24, 2012 4:25 am


Originally Posted by AALoyalNYC (Post 19717647)
...Though, like most elite fliers...

Elite fliers... ?! What a joke! I don't think that anyone from the elite has time to visit flyertalk. We are holders of an airline's frequet flyer program status and nothing more!

yolo1966 Nov 24, 2012 7:35 am

Peachfront, I would probably disagree with you re: chain hotels. I've stayed everywhere, from hostels and roadside motels to 4* star properties. Neither type of lodging took away from my goal of visiting a place and immersing myself in its culture and other activities.

For most of us a hotel is merely a place to shower and store belongings. Where one choses to lay their head at night doesn't define their trip. You shouldn't be spending time in your room anyway unless its your honeymoon!

Besides if one can afford better whether with points or $, why should one force themselves to stay in a hostel bunking with 8 others? To me that doesn't make you a more "authentic" traveler.

mecabq Nov 24, 2012 8:10 am

The article makes some good points. I am not sure why so many here are calling him "stupid" -- he acknowledges near the top of the article that a few people at the top do benefit from the programs (i.e., many FT members). His article was obviously intended for everyone else (though I detest his sanctimony about his "advocating for consumers").

For the average traveler, I think that his points are valid. Everyone is quick to say, "well, I got a free [sic] trip to XYZ," but virtually no one talks about the opportunity costs -- if one had saved money by steering business to the flight with the optimal price/schedule instead of the one on which he is accruing miles; saved on the hidden fees; and gotten, say, a cash-back card instead of a miles-earning card (not to mention the research findings that people tend to inflate their spending when they're paying by credit card), then chasing that reward may or may not have been the best deal. And we can probably all agree that the miles inflation and severe restrictions on availability do amount to a "bait-and-switch" to some degree.

Of course if you're spending other people's money racking up miles on a credit card for business expenses, or you travel all the time so you are earning lots of miles and are in a postion to enjoy the elite benefits, then there's little down-side -- but that doesn't characterize most travelers.

AA_EXP09 Nov 24, 2012 9:26 am


Originally Posted by yolo1966 (Post 19737154)
Peachfront, I would probably disagree with you re: chain hotels. I've stayed everywhere, from hostels and roadside motels to 4* star properties. Neither type of lodging took away from my goal of visiting a place and immersing myself in its culture and other activities.

For most of us a hotel is merely a place to shower and store belongings. Where one choses to lay their head at night doesn't define their trip. You shouldn't be spending time in your room anyway unless its your honeymoon!

Besides if one can afford better whether with points or $, why should one force themselves to stay in a hostel bunking with 8 others? To me that doesn't make you a more "authentic" traveler.

Even staying in a rental car at your destination has it's benefits.
I've done that many times.

mnscout Nov 24, 2012 12:22 pm


Originally Posted by yolo1966 (Post 19737154)
Peachfront, I would probably disagree with you re: chain hotels. I've stayed everywhere, from hostels and roadside motels to 4* star properties. Neither type of lodging took away from my goal of visiting a place and immersing myself in its culture and other activities.

For most of us a hotel is merely a place to shower and store belongings. Where one choses to lay their head at night doesn't define their trip. You shouldn't be spending time in your room anyway unless its your honeymoon!

Besides if one can afford better whether with points or $, why should one force themselves to stay in a hostel bunking with 8 others? To me that doesn't make you a more "authentic" traveler.

To be perfectly honest, I indeed tend to spend a little more time on the hotel grounds if the hotel is gorgeous and even more time if it has a lounge:). It's a good point. Do luxury hotels distract from travel experiences? In my case, they do even if a little. I guess I've just never thought about it.

I've stayed in hostels and budget hotels before and I will again, and there is nothing wrong about it. Give me a clean motel or hotel with a private bathroom, and I'm content. In hostels, though, I've always used to take a single room. I left bunking with other people behind, in my college times:) Not that it wasn't fun, but nowadays I do want a good night's sleep, especially when I travel.

LowFlyOver Nov 24, 2012 1:19 pm


Originally Posted by peachfront (Post 19733657)
Another thing I've especially noticed is the large number of Flyertalkers who are no longer happy to get a seat in business or first class. Now they must chase suites in chain hotels. If they looked back on their past and their youth, they would be horrified at themselves. There is no real purpose to travel if you're going to stay in a chain hotel. Stay in a hostel, stay in an eco lodge, heck, stay in a cave or a tent. But once people get their heads eaten by miles and points, then all they think about is "free hotel rooms" and their world gets a little smaller even as they are traveling over a wider piece of the globe. It is a very easy trap to fall into. When we were young, we used to laugh at the masses going all the way to London or wherever to stay in a Best Western. Now too many of us have lost our way and become those masses.

I have found it useful to ask myself, why am I traveling? Just because it's free? Heck, I can stay home for free. There has to be something more out there, or I am letting somebody else (loyalty programs and marketing campaigns) decide how am I spending my time.

I stayed in hostels a couple of decades ago as a high schooler when traveling in Europe. I found the large room bunkbed atmosphere economical as a teenager, but I didn't especially "like" it. Hotel points allow my family and I to have free rooms often in Hilton, SPG, and Club Carlson properties. With kids, but really even before kids, we always have wanted to have our own private space to retire of an evening. That has nothing to do with the destination, honestly, and more to do with lack of desire for communal sleeping areas, showering spaces, etc.

We spend very little time at the hotel, unless we're at a resort on the level of the Pointe Hilton Squaw Peak in Phoenix or something. For example, when state-side, staying at the Homewood Suites-Garden Grove or the WDW Swan/Dolphin is merely a matter of convenience to limit the back-and-forth travel between Disney Parks and the hotel. Also, suites are even nicer/more like home. A few times, we have stayed in suites/condos with 1,000+ square feet. Having that much space is quite nice to allow kids to play.

Tailgater Nov 25, 2012 10:34 am

I think airline promos are somewhat similar to the various retailer promos, most of which depend on the customer to keep updated and educated about how to redeem the membership benefits. Some of these retailers (including grocery) require one to swipe or enter a tel number to rack up points. It's easy to forget about deadlines and/or other requirements to redeem bonuses, etc. If you keep track (which isn't always easy) and really play the game it's entertaining to get freebies and discounts. :p


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