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Revenue-Based Mileage-Earning No Longer Makes Sense

Nov 22 2020

Revenue-based frequent flyer programs have always been less generous. These programs were long popular with ultra low cost carriers, with low margins, where awarding customers little made sense.

When planes were full, rewarding customers less made some sense. Airlines didn’t need to spend as much marketing to fill empty seats when there weren’t many empty seats. The problem now is that revenue-based programs reward customers less in a low fare environment precisely when airlines need to invest more in marketing to fill empty seats, and it’s cheaper to offer award inventory than ever.

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