Jul
25
2017
I received a pitch for a consulting firm’s new study, Premium Travel Reward Credit Cards: High Profile but Unsustainable, which argues that high reward, high fee cards are an unsustainable business.
In some ways this is important because it counters the Joe DeNardi claim that airlines are worth substantially more than the market values them at because the frequent flyer programs are so profitable. I’ve argued that rather than being able to expect 4% annual growth or higher it’s more likely that programs will face both revenue and cost pressures in the future.
