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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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1 Million People Flew Yesterday And That’s A Little Scary

Nov 21 2020

Thanksgiving air travel is going to set 2020 records, and the confidence level for that can be adjusted up significantly after 1 million people cleared TSA security checkpoints yesterday.

We’re now at a place where intertemporal substitution makes a great deal of sense. We’ll travel less now, and travel more in the summer. We’ll go out to eat less now, and go out to eat more in the summer. I simultaneously cannot wait for travel to recover and also hope it waits until 2021 to do so.

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