News and notes from around the interweb:
- People primarily redeem Amex Membership Rewards points for gift cards, statement credits, and ‘pay with points’ shopping – not transferring points or even booking travel. (1) The idea of travel matters more than actually using points for travel, (2) Amex has a lot of low cost transfer partners, but that’s not what keeps the economics of transfers working for them – it’s all those even cheeaper redemptions. Their blended average redemption cost is just super-low… which means that Amex basically redistributes value from clueless consumers to savvy ones.
- Delta will open a new Las Vegas Sky Club and replace their current Tampa and Jacksonville clubs I’m surprised it took Delta this long to share the news none of this was secret, I wrote that Tampa was happening a year ago.
- Straight to jail.
@sabtravel Isn’t this even ILL€GAL to do?? #solotravel #travelgirl #travelhumor ♬ original sound – SAINTED View on Threads - It’s always Marriott.
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- A new law review article arguing that the Department of Transportation lacks the legal authority to impose the kinds of frequent flyer program rules they were considering late in the Biden administration.
- There’s been a lot of talk about GLP-1 drugs bringing down airline (fuel) costs. I suspect it will bring down fares, also, in some markets – largely airport that aren’t slot or gate-constrained, because there competition can drive down prices towards that lower cost. Of course use of the drugs need to be widespread to bring down average passenger weight before any of this plays out.
A few years ago I learned that my elderly father had redeemed 400K of Amex points for gift cards for the grandkids’ Christmas gifts. I told my father he could’ve used the points towards airline tickets for me and I would have compensated him more than the value of the gift cards. sigh. Some folks just don’t get it.
So here’s the deal you won’t wanna hear. There is a generational divide here. Where as say the above 40 most certainly 50 people travel a lot love it…younger people don’t. Unless you’re not tuned into financial news over 40% of Amex’s new customers for numerous years are Gen Z. For them the Gold Card is it with many getting Platinums. They are not traveling…they are eating out, seeing shows.
The points for them are gift cards to cover eating and everything you explained.
It’s also why your site should start morphing because your site and every other stinking travel site continuously talks about travel only, business class, airport lounges, upscale hotels. You’re talking about everything that probably 1/3 to almost half of Amex card users are not doing and you speak zero about everything they are doing. Need some proof go talk to some. My job I work with 20s-30s daily and their interests are radically different for whatever reason then other generations. A good example is did you know that almost 75% of under 30 do not drink. Under 40 it’s near 50%.
Interesting how Amex has pulled away to take the lead by expressly catering to the younger folk and its worked marverlously business metrics wise while the others have not and have suffered. There is a perception that they do not have money. Not only are a significant number of them paying their bills, paying their annual fee but they are being glossed over like this site.
Try hiring some non boomer employees for the site and that might change. Just my two cents.
AMERICAN EXPRESS counts on consumer stupidity
Their whole program is a legal Ponzi scheme
They even charge you to transfer points if the program is in North America
Massive annual fees ,hard to use benefits, crowded clubs and lousy customer service
And yet folks can’t bend over quick enough to do it
vastly better cards out there if your a point and mile whore
Dumped them years ago and it was the best thing I’ve ever done
@BA`. I love hearing how younger folks think they are so much smarter and have everything figured out vis a vis their elders. I enjoy living in my large house that I refuse to sell for something smaller. I love spending their social security contributions. The smug bastards deserve their empty lives.
All of the “best” uses promoted by this and all the other travel sites for all transferrable points are business class on airlines from the third world or countries run by dictatorships. Please tell us what the best uses are if we don’t plan to fly business class connecting through the middle east on “bone-saw” airlines?
It’s actually why Bilt has a shot if their management could get out of their own way and figure out how to market it. Most people seem to care more about coupons / gift cards versus points. In a dopamine + inflation world, redeeming points strategically for travel 6+ months away is far less appealing than obtaining a gift card / statement credit and using it immediately. 4% back in Bilt Cash is notably a feature of all 3 cards. I’ll wager most people get the $0 fee Blue card and most people who do so will feel like they are “getting something” redeeming for Lyft and Walgreens coupons. The points become an afterthought.
Dear Mr. Leff,
I have to say that there are times when you come across as one arrogant _______ (I will let you fill in the blank). Just because someone doesn’t place the same value on points that you do, that does not make them a “clueless consumer”. As someone who retired recently from a job that had me traveling 50k-125k miles per year for a period of about 25 years, time spent away from my home, family and friends, I am happy not to have to travel any more. I find better “value” in spending what remains of my miles on gifts or gift cards than on flights I have no interest in taking. Please lose the attitude. A general statement that use of miles on gifts and gift cards does not give one the value that spending them on travel does is fine. Insulting those with different priorities is not.
Clueless Consumer
As I get older I realized quite often it’s not the value or the most efficient way of doing something but what it’s ultimate goal is. I have at times made redemptions because it had to be done at that moment or I lose the opportunity either because I didn’t think of a better way or the person I’m helping didn’t know better. But I have made dumb redemptions that made another person so happy it was beyond worth the price. And when that person had passed on you hold on to that gratitude even more. While sentiments are not tangible nor calculated it’s worth A LOT.