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Wednesday, June 28, 2006

Frequenr flyer program NOT for flyers

I'm not sure why it's an issue, but I saw this new today. It's basically saying the frquent flyer programs nowaday are too much like reward programs of credit cards instead of a program designed for a real frequent flyer. I'm not sure about that, since the supermajority of my miliage in my WorldPerk account is still from flight (EWR <-> TPE). I have lots of bonus miles, but they are flight related too. My personal feeling is that you're not earning any significant miles by purchasing or so, maybe I'm wrong.

Twenty-five years later, travelers and industry experts say the programs have flown far off course from their original purpose. Yet it’s doubtful the airlines will ever change from their present direction because the programs have turned into huge revenue producers on their own, a $4 billion industry that’s even been listed by airlines as assets in bankruptcy and merger and acquisitions negotiations. Airlines have created a big business out of selling frequent flier miles to outside companies that in turn use miles to woo their own customers.

"In the 1990s, the programs probably changed from less of a loyalty program — that’s what it was all about — more into a rewards program that now the masses of people that just don’t fly 20 times a year have the ability to earn free tickets,” said Jeff Robertson, managing director of Delta’s SkyMiles program.

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