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Inside the Award Seat Crisis: Air Canada On Dynamic Pricing Of Partner Awards As Too Many Miles Chase Too Few Seats

Feb 10 2025

Airlines are at risk of killing their golden goose. Miles motivate customers, but customers need to be able to use their miles. Airlines have gotten better at selling their seats for cash, frequent flyer programs want to retain their margins, and so members get squeezed.

As a result, airline executives call for ‘revisiting the model’ of frequent flyer programs – the model that made them successful, multi-billion dollar enterprises.

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Frequent Flyer Programs Have Lost Their Way—Air Canada’s Dire Warning For Airlines

Dec 24 2024

For a currency to continue to be attractive, it needs to deliver value – managers can’t just focus on sales to third parties, they have to focus on the customers who ultimately want the miles. And they want it because of the travel possibilities that it opens up, from redemptions to treatment with the airline. It’s important not to forget that the programs can actually create loyalty to the airline itself and not just to the in-wallet plastic; actually putting butts in seats and at a premium.

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