- Joined
- Jun 4, 2010
- Messages
- 4,956
- Reaction score
- 156
- Location
- Mansfield, TX
- Resorts Owned
- Palace View Branson (4 Lockouts), Grandview (Points), CMV (UDI), DVC (SSR 25)
Unsustainable FF programs - like the over blown demands of Unions - are what drive the high costs of operation. In the current, cost cutting and value based world of air fare (and other goods & services) this throw back to more profitable and exclusive times cannot survive. They have to be competitive in pricing (they are not) and at those lower rates cannot support the high union rates or extravagant FF features.
Said it before and will say it again. The good old days of FF programs is over. With the inflation of instant status by getting just about any credit card, fewer flights overall, ridiculous bonus miles offers, route shrinkage, consolidation and other factors, this ain't like it used to be.![]()
I think this is a first... In this case, I totally agree with Carolinian. FF programs are one of the more profitable parts of most airlines. And while benefits have been cut back a bit over the past 10 years or so, I've actually seen an uptick in benefits over the past couple. Airlines are looking for loyalty, and the FF programs bring it. I have status with American, and I'll choose American over the competition even if the price is a bit higher. That's what airlines like.Actually ff programs are quite profitable for airlines because of the money they get from hotels, car rental companies, banks, etc. for selling miles. They also add to the bottom line indirectly in another way, by geting loyalty from high fare business travellers. Without decent ff programs, many business travellers who now make a point of flying a particular airline will just fly price and schedule. The business travellers are where the money is for airlines.